Q: What is included in Puzzle’s automated revenue recognition features?
A: Puzzle suite of revenue recognition features include:
Automated revenue recognition schedules from Stripe subscriptions
Automated revenue recognition schedules for manual invoices recorded in Puzzle
Automated deferred revenue schedules
Automated accrued revenue postings to the general ledger
Real-time MRR, ARR, churn rate, and retention rate calculations
Revenue recognition calculations use a 30/360 convention, with a prorated first month.
Q: How do I turn on automated revenue recognition on my account?
A: If you have a connected Stripe account, you can turn on automated revenue recognition from the “Integrations” page under the Stripe account's settings.
Q: Where can I view the revenue recognition schedules?
A: You can see revenue recognition schedules in three places:
(1) on the “Invoices” tab of the “Accounting” page by selecting “Schedules” at the top of the page,
(2) on the “Transactions” page by selecting a Stripe subscription transaction with an associated revenue recognition schedule and clicking on “revenue recognition schedule” in the transaction details,
(3) on the “Accrual revenue” tab of the “Revenue” page
Q: How does Puzzle calculate the revenue to be recognized?
A: Puzzle uses a 30/360 convention to automatically calculate the prorated amount of revenue to be recognized in any given period, with a prorated first month.
Q: Does Puzzle support other revenue recognition methods (e.g., percentage of completion, completed contract, etc.)?
A: Not currently.
Q: Does Puzzle capture revenue data from Stripe?
A: Yes, Puzzle syncs subscription data with the Stripe integration.
Q: Which payment processors work with Puzzle’s automated revenue recognition feature?
A: Puzzle, automated revenue recognition works with Stripe, and invoices that are entered directly in Puzzle.
Q: Is my revenue automatically ASC 606 compliant in Puzzle?
A: At the moment, we do not guarantee that your revenue will be recognized appropriately under ASC 606 as there are a number of considerations to take into account.
Q: What kind of reporting and analytics capabilities does Puzzle offer related to revenue recognition?
A: In addition to revenue recognition schedules, Puzzle also calculates ARR/MRR totals by customer, Annualized Accrual Revenue, churn, and Net retention. All of these can be viewed on the “Revenue” page.
Q: How frequently does Stripe sync to Puzzle?
A: Stripe syncs to Puzzle once a day.