Sometimes you may see a Revenue Recognition Journal Entry that was completely skipped and nothing was synced to your books.
The entry will have the “synced with warnings” status, and the message will say:
“All the products in this entry have the same account linked in revenue recognition plans mapping and in your books. The synced entry would move the same amount to and from this account, so it is skipped.”
What caused the issue?
The issue is caused by the fact that completely the same accounts are mapped to the subscription products. So in QuickBooks all the products from the Large, Golden, Silver and Bronze subscriptions are mapped to the “Stripe sales” account.
In Synder, these Stripe subscriptions will be mapped to the same “Stripe sales” income account.
QuickBooks product income accounts in the Products and Services tab
Synder RevRec mapping of products and income accounts in the Configuration tab
When Synder is composing a Revenue Recognition Journal Entry, it looks at the mapping of products and income accounts to understand which account it should take the amounts from (deferred revenue) and where to put them (income account).
However, with the above mapping, Synder receives the following information for the Bronze subscription recognition:
The “Bronze subscription” QuickBooks product is linked to the Stripe “Bronze subscription/740 USD/ yearly” product. So Synder goes to QuickBooks and looks at the income account linked to the “Bronze subscription”, which is the “Stripe sales” account.
Then Synder looks at the income account mapped under the Configuration mapping, which is “Stripe sales” as well.
So when Synder tries to recognize the amount for this subscription, the Journal Entry will look like this:
|Journal Entry line account||Debit||Credit|
This entry doesn’t change anything in the books, so the app skips it and sends you a warning about this.
How to solve it?
First, check if you really need to solve it.
If you don’t want to perform recognition for certain subscription products (for example, if you don’t need any recognition for monthly subscriptions), then you can map them in the way outlined above to completely skip recognition for such subscriptions. So when the invoice comes in, it’ll show up directly as income, and you won’t need to create any Journal Entries in your books. If this is the case, you don’t need to change anything.
If you actually want the recognition to be done for the mistakenly skipped subscription, you need to change the income account in QuickBooks to something else (or change it in Synder). As long as the accounts are different in QuickBooks and in Synder, the Journal Entry will be synced according to the setup.
For the above example, you can change the “Stripe sales” income account in QuickBooks to the “Deferred Revenue” account:
- Open the “Products and Services” tab in QuickBooks (usually it is under the “sales” tab, but this can differ in different QuickBooks versions)
- Click “Edit” in front of the needed product
- Change the “Income account” to “Deferred revenue”
- Save the product
Do this for all the products required, and then sync the previously skipped transactions in the Synder “Platform transactions” tab. This time, they’ll be synced to QuickBooks.
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!