If your accrual P&L revenue doesn't match your Stripe activity, the revenue rollforward, or the total invoiced for the month, nothing is necessarily wrong. Each of these measures something different. This guide shows how they connect.
Why the numbers differ
Stripe activity / Stripe reconciliation is cash: payments collected, net of refunds and fees. It doesn't tell you when revenue is earned.
Invoiced is everything billed in the month, including invoices that were later voided.
Deferred revenue holds billed amounts that haven't been earned yet. It's released to revenue over each invoice's service period.
P&L revenue is what was actually earned in the month.
How Puzzle records an invoice (accrual basis)
When the invoice is issued:
Dr Accounts Receivable / Cr RevenueIf the invoice line has a confirmed revenue schedule, a same-day entry moves it to deferred revenue:
Dr Revenue / Cr Deferred RevenueEach month, the earned portion is released:
Dr Deferred Revenue / Cr Revenue
Lines without a confirmed schedule stay in revenue in full in the month they're invoiced. Monthly and annual subscriptions follow the same steps.
The tie-out formula
P&L revenue = Net invoiced − Net increase in deferred revenue (+ any manual journal entries to revenue accounts)
Where:
Net invoiced = invoices issued in the month − invoices voided in the month
Net increase in deferred revenue = credits to Deferred Revenue − debits to Deferred Revenue for the month
Example
Invoiced: $90,000
Voided: −$10,000
Net invoiced: $80,000
Deferred revenue, credits (new deferrals): $60,000
Deferred revenue, debits (releases): −$40,000
Net increase in deferred revenue: −$20,000
P&L revenue: $60,000
Step by step
Go to Accounting → General ledger and select your Deferred Revenue account for the month.
Total the credits and the debits. Opening balance + credits − debits should equal the closing Deferred Revenue on your accrual balance sheet.
Total invoices issued and voided for the month (Revenue → Invoices).
Plug the totals into the formula above and compare the result with revenue on the accrual P&L.
Splitting revenue into "from prior deferrals" vs. "billed this month"
Recognized from schedules: the Recognized total on the accrual revenue rollforward for the month.
Recognized directly: P&L revenue minus the recognized-from-schedules amount. This is revenue from invoice lines without a confirmed schedule, plus any manual entries.
Common reasons it doesn't tie
Voided invoices: if an invoice was deferred and then voided, the deferral is reversed with a debit to Deferred Revenue. That debit shows up in the GL but isn't recognized revenue, so GL debits can be higher than the rollforward's Recognized total.
Invoices billed before the service period starts: the deferred amount sits on the balance sheet right away, but the rollforward only includes schedules whose service period overlaps the selected dates. Widen the date range to include the service start to see them.
Unconfirmed schedules: lines without a confirmed schedule are recognized in full when invoiced. To change how a line is treated, confirm or unconfirm its schedule under Revenue → Accrual Revenue.
Cash vs. accrual: make sure both the P&L and the balance sheet are set to Accrual.