{"id":22693,"date":"2024-06-24T19:31:32","date_gmt":"2024-06-24T19:31:32","guid":{"rendered":"https:\/\/synder.com\/help\/?p=22693"},"modified":"2026-08-20T14:38:59","modified_gmt":"2026-08-20T14:38:59","slug":"synder-revrec-excluding-line-items-from-recognition","status":"publish","type":"post","link":"https:\/\/synder.com\/help\/synder-revrec-excluding-line-items-from-recognition\/","title":{"rendered":"Synder RevRec: Excluding Line Items From Recognition"},"content":{"rendered":"\n

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:<\/p>\n\n\n\n

\"\"\/
Line items description<\/figcaption><\/figure>\n\n\n\n

With Synder, you can set up keywords to exclude such lines from the recognition. To do this, follow the steps below:<\/p>\n\n\n\n

  1. Go to the \u2018Revenue Recognition\u2019 menu tab in your Synder account.<\/li>
  2. Click \u2018Configuration\u2019 \u2192 \u2018Recognition settings\u2019.<\/li>
  3. Enable \u2018Exclude products from recognition\u2019 and specify the product names separated by a comma.
    Note 1<\/strong>: Pay attention to letter cases (e.g. tax and Tax are different keywords).
    Note 2<\/strong>: The search will run through the line items ‘;Descriptions’ from Stripe.<\/li>
  4. If the line item from the invoice contains the specified keyword \u2192 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 \u2018Income account\u2019 linked to this item in the accounting system.<\/li><\/ol>\n\n\n\n
    \"\"\/<\/figure>\n\n\n\n

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

    Recognition schedule before the item is excluded:<\/strong>
    <\/strong><\/p>\n\n\n\n

    <\/td>Invoice amount<\/strong><\/td>Booked amount<\/strong><\/td>June, 24<\/strong><\/td>July, 24<\/strong><\/td>Aug, 24<\/strong><\/td>\u2026<\/strong><\/td><\/tr>
    Platinum subscription<\/td>2400 <\/td>2400<\/td>200<\/td>200<\/td>200<\/td>\u2026<\/td><\/tr>
    Sales tax<\/td>165 <\/td>165<\/td>13.75<\/td>13.75<\/td>13.75<\/td>\u2026<\/td><\/tr>
    Total<\/td>2565 <\/td>2565<\/td>213.75<\/td>213.75<\/td>213.75<\/td>\u2026<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

    Recognition schedule after the tax item is excluded:<\/strong><\/p>\n\n\n\n

    <\/td>Invoice amount<\/strong><\/td>Booked amount<\/strong><\/td>June, 24<\/strong><\/td>July, 24<\/strong><\/td>Aug, 24<\/strong><\/td>\u2026<\/strong><\/td><\/tr>
    Platinum subscription<\/td>2400 <\/td>2400<\/td>200<\/td>200<\/td>200<\/td>\u2026<\/td><\/tr>
    Sales tax<\/td>165 <\/td>0<\/td>0<\/td>0<\/td>0<\/td>\u2026<\/td><\/tr>
    Total<\/td>2565 <\/td>2400<\/td>200<\/td>200<\/td>200<\/td>\u2026<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

    What it looks like in QuickBooks Online<\/h2>\n\n\n\n

    When Synder posts the invoice, the recognizable Platinum subscription<\/strong> line lands in Deferred Revenue<\/strong> (to be recognized over the schedule), while the excluded Sales tax<\/strong> line posts straight to Taxes Payable<\/strong> \u2014 it never enters the recognition schedule. Here is the invoice’s transaction journal in QuickBooks Online:<\/p>\n\n\n\n

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

    That’s it! Now you know how to exclude line items from recognition.<\/p>\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