- Decrease revenue by the amount of refunds<\/a><\/li>
- Track refunds on a separate category<\/a><\/li><\/ol>\n\n\n\n
Decrease revenue by the amount of refunds<\/strong><\/h2>\n\n\n\n
By default, Synder RevRec will just decrease revenue by the amount of refunds, so Profit and Loss will show the revenue net of refunds.<\/strong><\/p>\n\n\n\n
Example:
Imagine that your customer paid a yearly invoice for $300 in August 2024. To make it simple, let\u2019s assume that $100 was recognized as the revenue for January 2023 (regardless of the number of days). In September, a full refund was processed.<\/p>\n\n\n\n<\/figure>\n\n\n\n
The revenue schedule will look like this:<\/p>\n\n\n\n
<\/figure>\n\n\n\n
We can see that the invoice recognition started in August and $100 was recognized. However, once the refund for the full amount was processed -$300, the revenue decreased by the recognized amount -$100 in September.<\/p>\n\n\n\n
The table below shows all the transactions created in the books for this subscription. The product mapping is done in Revenue Recognition<\/em> \u2192 Configurations<\/em>.
So, let\u2019s imagine that a Stripe product was mapped to the QuickBooks \u201c3 months product\u201d and to QuickBooks income account \u201cSubscription revenue\u201d in the RevRec Configurations in Synder. And the \u201c3 months product\u201d is linked to the \u201cDeferred revenue\u201d account in QuickBooks.<\/p>\n\n\n\nThe synced transactions in the accounting platform synced will look like this:<\/p>\n\n\n\n
Period<\/td> Transaction type<\/td> Product<\/td> Account<\/td> Debit<\/td> Credit<\/td><\/tr> August<\/td> Invoice<\/td> 3 months product<\/td> Deferred revenue<\/td> <\/td> 300<\/td><\/tr> <\/td> Invoice<\/td> 3 months product<\/td> Accounts Receivable<\/td> 300<\/td> <\/td><\/tr> <\/td> Invoice payment<\/td> <\/td> Accounts Receivable<\/td> <\/td> 300<\/td><\/tr> <\/td> Invoice payment<\/td> <\/td> Stripe clearing<\/td> 300<\/td> <\/td><\/tr> <\/td> Journal Entry<\/td> <\/td> Deferred revenue<\/td> 100<\/td> <\/td><\/tr> <\/td> <\/td> <\/td> Subscription revenue<\/td> <\/td> 100<\/td><\/tr> September<\/td> Refund<\/td> 3 months product<\/td> Stripe clearing<\/td> <\/td> 300<\/td><\/tr> <\/td> <\/td> <\/td> Deferred revenue<\/td> 300<\/td> <\/td><\/tr> <\/td> Journal Entry<\/td> <\/td> Deferred revenue<\/td> <\/td> 100<\/td><\/tr> <\/td> <\/td> <\/td> Subscription revenue<\/td> 100<\/td> <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n As a result:
The deferred revenue balance is $0.
The clearing account is $0.
The profit and loss shows $100 in August and -$100 in September, so the year-end revenue will be net of refunds.<\/p>\n\n\n\n<\/figure>\n\n\n\n
Track refunds on a separate category<\/strong><\/h2>\n\n\n\n
An alternative way of tracking refunds would be to track them in a separate category, so that your revenue shows gross income and refunds on separate categories. To do this, follow the steps below:<\/p>\n\n\n\n
- \n
- Go to Synder Settings <\/em>tab in the left-hand menu \u2192 Sales.<\/em><\/li>\n\n\n\n
- Enable the Track refunds<\/em> setting, which will only be available if you have revenue recognition enabled.<\/li>\n\n\n\n
- Set the account for refunds tracking in the Refunds account<\/em> field.<\/li>\n\n\n\n
- Sync your subscription with a refund and enjoy the result.<\/li>\n<\/ol>\n\n\n\n
<\/figure>\n\n\n\n
Example:
Picture again that your customer paid a yearly invoice for $300 in August 2024. Let\u2019s also assume that $100 was recognized as the revenue for January 2023 (regardless of the number of days). In September, a full refund was processed.<\/p>\n\n\n\nThe revenue schedule will look in absolutely the same way as in the above example.
The table below shows all the transactions created in the books for this subscription. The product mapping is done in Revenue Recognition<\/em> \u2192 Configurations<\/em>.
So, let\u2019s imagine that a Stripe product was mapped to the QuickBooks \u201c3 months product\u201d and to the QuickBooks income account \u201cSubscription revenue\u201d in the RevRec Configurations in Synder. And the \u201c3 months product\u201d is linked to the \u201cDeferred revenue\u201d account in QuickBooks.
The refunded amount is reflected on the account selected in Synder settings: \u201cRefunds given\u201d.<\/p>\n\n\n\nThe synced transactions in the accounting platform synced will look like this:<\/p>\n\n\n\n
Period<\/td> Transaction type<\/td> Product<\/td> Account<\/td> Debit<\/td> Credit<\/td><\/tr> August<\/td> Invoice<\/td> 3 months product<\/td> Deferred revenue<\/td> <\/td> 300<\/td><\/tr> <\/td> Invoice<\/td> 3 months product<\/td> Accounts Receivable<\/td> 300<\/td> <\/td><\/tr> <\/td> Invoice payment<\/td> <\/td> Accounts Receivable<\/td> <\/td> 300<\/td><\/tr> <\/td> Invoice payment<\/td> <\/td> Stripe clearing<\/td> 300<\/td> <\/td><\/tr> <\/td> Journal Entry<\/td> <\/td> Deferred revenue<\/td> 100<\/td> <\/td><\/tr> <\/td> <\/td> <\/td> Subscription revenue<\/td> <\/td> 100<\/td><\/tr> September<\/td> Refund<\/td> 3 months product<\/td> Stripe clearing<\/td> <\/td> 300<\/td><\/tr> <\/td> <\/td> <\/td> Deferred revenue<\/td> 300<\/td> <\/td><\/tr> <\/td> Journal Entry<\/td> <\/td> Deferred revenue<\/td> <\/td> 100<\/td><\/tr> <\/td> <\/td> <\/td> Refunds given<\/strong><\/td> 100<\/td> <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n As a result:
The deferred revenue balance is $0.
The clearing account is $0.<\/p>\n\n\n\nThe profit and loss shows $100 in the Subscription revenue category in August and -$100 in the Refunds given category in September, so the year-end revenue will be showing gross revenue and refunds in separate categories.<\/p>\n\n\n\n
<\/figure>\n\n\n\n
- Enable the Track refunds<\/em> setting, which will only be available if you have revenue recognition enabled.<\/li>\n\n\n\n
- Track refunds on a separate category<\/a><\/li><\/ol>\n\n\n\n