- Understanding Stripe invoice statuses<\/a><\/li>
- The pause recognition method for open invoices<\/a><\/li>
- Backdated and future-dated invoices<\/a><\/li>
- Setup explained<\/a><\/li>
- Recognize open invoices<\/a><\/li>
- Setup explained<\/a><\/li>
- Special Cases<\/a><\/li><\/ul>\n\n\n\n
<\/strong>Understanding Stripe invoice statuses<\/strong><\/h2>\n\n\n\nBefore diving into recognition methods, it’s important to understand the invoice statuses in Stripe, which affect how Synder processes them:<\/p>\n\n\n\n
- \n
- Open<\/strong> – A finalized (sent) invoice that has not yet been paid. In Stripe, it may also appear as “Retrying” or “Failed” if payment attempts are unsuccessful. The status may later update to Paid, Voided, or Uncollectible, depending on the outcome.<\/li>\n\n\n\n
- Draft<\/strong> – An invoice that has not been finalized. It can only transition to the Open status.<\/li>\n\n\n\n
- Voided<\/strong> – An invoice that has been canceled and won’t be paid. This status is final and can’t be changed.<\/li>\n\n\n\n
- Uncollectible<\/strong> – An invoice considered unlikely to be paid. It can still be updated to Paid or Voided if the situation changes.<\/li>\n\n\n\n
- Paid<\/strong> – A finalized invoice that has been successfully paid. This status is final and can’t be modified.<\/li>\n<\/ul>\n\n\n\n
Note<\/em><\/strong>: Subscription invoices often become “open” when a payment doesn’t go through (insufficient funds, expired card, etc.). Stripe will retry payment several times before the subscription is canceled.<\/em><\/p>\n\n\n\n
<\/p>\n\n\n\n
The pause recognition method for open invoices<\/strong><\/h2>\n\n\n\n
<\/strong>Synder pauses recognition of any open invoices and doesn\u2019t recognize anything in your books unless the invoice has the Paid\/Voided\/Uncollectible statuses. Synder recognizes the revenue only after the invoice reaches one of these final statuses, updating prior periods with the appropriate revenue recognition entries.<\/p>\n\n\n\nExample:<\/strong>
<\/strong>
<\/strong>Your Stripe subscription has 2 invoices. The first one is a monthly invoice for the Bronze plan, fully paid right away in February. The other one is a yearly invoice for the Large plan that is initiated in March, and remains open till May, when it gets finally paid off.<\/p>\n\n\n\n<\/figure>\n\n\n\n
Recognition flow:<\/strong><\/p>\n\n\n\n
February:<\/strong><\/p>\n\n\n\n
The monthly invoice is fully recognized in February, since the subscription begins on February 1. The recognition calculation is as follows: $199.99\/28*28=$199.99<\/p>\n\n\n\n
March and further months:<\/strong>
<\/strong>You will get no journal entries available for synchronization unless the invoice is paid off, so your P&L will be empty throughout March and April. The entries will be generated in May but will be backdated and synced as of March 31 and April 30.
Note: <\/em><\/strong>Synder will display a message indicating that no revenue recognition entries (journal entries for recognizing revenue) have been generated for the open invoice.<\/em><\/p>\n\n\n\n<\/figure>\n\n\n\n
The schedule will still display the expected revenue for your open invoice:<\/p>\n\n\n\n
<\/figure>\n\n\n\n
As soon as the invoice is paid off in May, Synder will generate and sync the journal entries for March (dated March 31) and April (dated April 30) and will continue generating monthly journal entries on a regular basis at the end of each month.
Note:<\/em><\/strong> <\/em>You can filter out open invoices and their associated revenue in the overview report to align the figures with your P&L statement, which only includes revenue from synced months. This means that any “pending” months tied to open invoices aren’t yet reflected in your books<\/em><\/p>\n\n\n\n<\/figure>\n\n\n\n
The profit and loss statement will appear as follows, reflecting an ongoing annual subscription with revenue recognized only through November:<\/p>\n\n\n\n
<\/figure>\n\n\n\n
The balance sheet will appear as follows, reflecting an ongoing annual subscription with revenue recognized only through November:<\/p>\n\n\n\n
<\/figure>\n\n\n\n
Backdated and future-dated invoices<\/strong><\/h3>\n\n\n\n
Backdated invoices (service start date in the past):<\/strong> If an invoice’s service period starts in a past period, Synder will recognize the corresponding revenue in the current period. This approach ensures timely recognition while still honoring the original service dates.<\/p>\n\n\n\n
Example:<\/strong> If a 6-month invoice for $600 is created and paid on August 15, but the service period started on July 15:<\/p>\n\n\n\n
- \n
- The revenue for July ($100) is recognized in August<\/li>\n\n\n\n
- Monthly revenue recognition continues as scheduled for the remaining service period<\/li>\n<\/ul>\n\n\n\n
Future-dated invoices (service start date in the future):<\/strong> If an invoice’s service period starts in a future period, Synder will not begin recognizing revenue until that future period begins. The full amount will remain in Deferred Revenue until recognition is appropriate.<\/p>\n\n\n\n
Example:<\/strong> If a 6-month invoice for $600 is created and paid on August 15, but the service period started on November 15:<\/p>\n\n\n\n
- \n
- The revenue is recognized in November, when the service begins<\/li>\n\n\n\n
- Monthly revenue recognition continues as scheduled for the remaining service period<\/li>\n<\/ul>\n\n\n\n
Setup explained<\/strong><\/h3>\n\n\n\n
To set up the app to pause revenue recognition for open invoices, follow the steps below:<\/p>\n\n\n\n
1. Make sure the revenue recognition schedule starts on the payment date.<\/p>\n\n\n\n
Note:<\/em><\/strong> <\/em>If revenue recognition is enabled through a support team call, Synder Team will handle the entire setup process and configure the method according to your preferences.<\/em>
<\/em>
<\/em> <\/em>Note 2:<\/em><\/strong> As revenue recognition highly depends on historical data, you won\u2019t be able to change the method later. If you wish to switch methods, you’ll need to restart the setup and syncing process from scratch.<\/p>\n\n\n\n2. If you prefer not to include open invoices in your books, ensure the “Sync open invoices” setting is turned OFF in your Synder settings. With this setting disabled, only paid invoices will be synced.
If you want to track accounts receivable (AR), enable the setting to sync open invoices. If an invoice is voided in Stripe, Synder will automatically reverse it. Uncollectible invoices, however, will remain recorded in your books.<\/p>\n\n\n\n
- Draft<\/strong> – An invoice that has not been finalized. It can only transition to the Open status.<\/li>\n\n\n\n
- The pause recognition method for open invoices<\/a><\/li>
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