Synder RevRec: Excluding Line Items From Recognition

One common use case where a line item should not be part of the revenue recognition schedule is when the item represents taxes. To ensure your books are GAAP compliant, you should exclude taxes from the deferred revenue flow.
However, if you manage taxes as line items in Stripe, it is problematic to exclude such lines. This is going to be an issue for you if your Stripe invoice looks somewhat like this:

With Synder, you can set up keywords to exclude such lines from the recognition. To do this, follow the steps below:

1. Go to the ‘Revenue Recognition’ menu tab in your Synder account.
2. Click ‘Configuration’ → ‘Recognition settings’.
3. Enable ‘Exclude products from recognition’ and specify the product names separated by a comma.
   Note 1: Pay attention to letter cases (e.g. tax and Tax are different keywords).
   Note 2: The search will run through the line items ‘;Descriptions’ from Stripe.
4. If the line item from the invoice contains the specified keyword → the line will not be a part of the revenue recognition schedule and will not get to Deferred Revenue. Such line items will be synced over according to the ‘Income account’ linked to this item in the accounting system.

Let’s consider the above example of a Stripe invoice with two line items: “Platinum subscription” and “Sales tax.”

Recognition schedule before the item is excluded:

	Invoice amount	Booked amount	June, 24	July, 24	Aug, 24	…
Platinum subscription	2400	2400	200	200	200	…
Sales tax	165	165	13.75	13.75	13.75	…
Total	2565	2565	213.75	213.75	213.75	…

Recognition schedule after the tax item is excluded:

	Invoice amount	Booked amount	June, 24	July, 24	Aug, 24	…
Platinum subscription	2400	2400	200	200	200	…
Sales tax	165	0	0	0	0	…
Total	2565	2400	200	200	200	…

That’s it! Now you know how to exclude line items from recognition.

Reach out to the Synder Team via online support chat, phone, or email with any questions you have – we’re always happy to help you!