{"id":20691,"date":"2024-02-19T13:31:14","date_gmt":"2024-02-19T13:31:14","guid":{"rendered":"https:\/\/synder.com\/help\/?p=20691"},"modified":"2026-04-10T12:32:32","modified_gmt":"2026-04-10T12:32:32","slug":"synder-revrec-stripe-chargebacks-processing","status":"publish","type":"post","link":"https:\/\/synder.com\/help\/synder-revrec-stripe-chargebacks-processing\/","title":{"rendered":"Synder RevRec: Stripe Chargebacks Processing"},"content":{"rendered":"\n

A refund is a return of money initiated by the merchant (business). However, the customer can also initiate a money return. This is called a dispute<\/strong>.  Here is the current flow<\/strong> for a dispute in Stripe (it can vary in different platforms) with Synder Sync<\/strong>:<\/p>\n\n\n\n

The end customer requests their money back, initiating a dispute. The same moment, Stripe withdraws the money.  In Synder, you will see the transactions type \u201cAdjustment\u201d, which will create an \u201cExpense\u201d with a Deferred revenue account and a unique description in QuickBooks Online for the full amount of the payment.
Also, Stripe takes a commission of $15 for reviewing a dispute (covered by the merchant).<\/p>\n\n\n\n

\"\"\/<\/figure>\n\n\n\n

Synced Expense for chargeback withdrawal in QuickBooks Online<\/em><\/p>\n\n\n\n

The business can see this in their Stripe account, where they have 2 options:<\/p>\n\n\n\n

    \n
  1. To accept the dispute – then Stripe will give the money back to the customer, without\u00a0charging the merchant in the books.<\/li>\n\n\n\n
  2. To dispute and prove that money should be returned, submitting evidence that the charge was valid. Then Stripe reviews the case and makes the decision (within 90 days). Stripe may either:
    – return the money to the end customer, which will not affect\u00a0the merchants\u2019 books as the money has already been withdrawn.
    – return the money to the merchant. In this case, Synder will sync another \u201cAdjustment\u201d creating a \u201cdeposit\u201d in QuickBooks Online to return the money to the Deferred revenue account. The recognition schedule will follow the adjustments.<\/li>\n<\/ol>\n\n\n\n
    \"This<\/figure>\n\n\n\n

    Synced Deposit for chargeback reversal in QuickBooks Online<\/em><\/p>\n\n\n\n

    Example of the recognition flow:<\/strong><\/p>\n\n\n\n

    Stripe data flow:<\/strong>
    October 12 – yearly invoice for $1200 was created, and paid.
    November 15 – the user initiated a chargeback (for $1200 as well).
    Feb 3 – the chargeback was returned to the merchant ($1200).<\/p>\n\n\n\n

    Bookkeeping flow:<\/strong>
    Let’s assume that for revenue recognition we use the monthly ratable method excluding last month.   It means that for the $1200 invoice, $100 should be recognized each month.
    When the chargeback happens, the recognition flow should be similar to refunds. The only difference is that chargebacks do not have product links. <\/p>\n\n\n\n

    Here is what the expected flow looks like:<\/p>\n\n\n\n

    Period<\/strong><\/td>Transaction<\/strong><\/td>Account<\/strong><\/td>Amount<\/strong><\/td><\/tr>
    Oct<\/td>Invoice  


    Invoice Payment


    JE1<\/td>    		AR
    Deferred Revenue 

    AR
    Clearing 

    Deferred Revenue
    Product Income<\/td>    		+1200
    +1200 

    -1200
    +1200 

    -100
    +100<\/td><\/tr>
    Nov<\/td>Expense (on chargeback date)   





    JE2<\/td>    		Clearing

    Deferred Revenue (withdrawal)
    Stripe fees (dispute fee) 


    Deferred Revenue
    Product income<\/td>    		-1215

    -1200
    -15


    +100
    -100<\/td><\/tr>
    Dec<\/td>\ufeff<\/td>\ufeff<\/td>0<\/td><\/tr>
    Jan<\/td>\ufeff<\/td>\ufeff<\/td>0<\/td><\/tr>
    Feb <\/td>Deposit (on reversal date)  


    JE3<\/td>    		Clearing
    Deferred revenue 

    Deferred Revenue
    Product income<\/td>    		+1200 (debit)
    +1200 (credit) 

    -500
    500<\/td><\/tr>
    Mar<\/td>JE4<\/td>Deferred Revenue
    Product income<\/td>    		-100
    100<\/td><\/tr>
    Apr<\/td>JE5<\/td>Deferred Revenue
    Product income<\/td>    		-100
    100<\/td><\/tr>
    May<\/td>JE6<\/td>Deferred Revenue
    Product income<\/td>    		-100
    100<\/td><\/tr>
    Jun<\/td>JE7<\/td>Deferred Revenue
    Product income<\/td>    		-100
    100<\/td><\/tr>
    Jul<\/td>JE8<\/td>Deferred Revenue
    Product income<\/td>    		-100
    100<\/td><\/tr>
    Aug<\/td>JE9<\/td>Deferred Revenue
    Product income<\/td>    		-100
    100<\/td><\/tr>
    Sept<\/td>JE10<\/td>Deferred Revenue
    Product income<\/td>    		-100
    100<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

    Notes for February<\/strong> 
    In February, the deposit returned all the money to the merchant, and we can see that the subscription is still active, so it should recognize all the missed periods: (Oct+Nov+Dec+Jan+Feb) in February, $100*5 = $500.
    Then the recognition flow should go as usually ($100\/mo).<\/p>\n\n\n\n

    This is what the revenue recognition schedule should look like:<\/p>\n\n\n\n

    Period<\/strong><\/td>Billed amount<\/strong><\/td>Period Revenue<\/strong><\/td>Recognized revenue balance<\/strong><\/td>Deferred Revenue balance<\/strong><\/td><\/tr>
    October<\/td>1200<\/td>100<\/td>100<\/td>1100<\/td><\/tr>
    November<\/td>-1200<\/td>-100<\/td>0<\/td>0<\/td><\/tr>
    December<\/td>0<\/td>0<\/td>0<\/td>0<\/td><\/tr>
    January<\/td>0<\/td>0<\/td>0<\/td>0<\/td><\/tr>
    February<\/td>1200<\/td>500<\/td>500<\/td>700<\/td><\/tr>
    Mar<\/td> <\/td>100<\/td>600<\/td>600<\/td><\/tr>
    Apr<\/td> <\/td>100<\/td>700<\/td>500<\/td><\/tr>
    May<\/td> <\/td>100<\/td>800<\/td>400<\/td><\/tr>
    Jun<\/td> <\/td>100<\/td>900<\/td>300<\/td><\/tr>
    Jul<\/td> <\/td>100<\/td>1000<\/td>200<\/td><\/tr>
    Aug<\/td> <\/td>100<\/td>1100<\/td>100<\/td><\/tr>
    Sep<\/td> <\/td>100<\/td>1200<\/td>0<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

    Reach out to the Synder Team<\/em><\/a> via online support chat, phone, or email with any questions you have \u2013 we\u2019re always happy to help you!<\/p>\n\n\n\n