Recognize revenue when you ship, not when you sell
ASC 606 / IFRS 15 compliant revenue recognition built into your operations. See every journal entry from payment capture to revenue recognition in real-time.
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Built on accounting standards, designed for operations
Revenue recognition that happens automatically as you fulfill orders—no manual journal entries required
ASC 606 / IFRS 15 compliant
Follow the 5-step revenue recognition framework automatically. Built for modern commerce with deferred revenue, performance obligations, and transaction price allocation.
Audit-ready journal entries
Every transaction creates a complete audit trail. See debit and credit entries from payment capture through shipment to settlement—all in real-time.
Real-time revenue visibility
No more waiting until month-end to know your revenue. Track recognized revenue, deferred revenue, and COGS in real-time as orders ship.
From payment to revenue in 4 steps
Watch revenue flow through your books automatically. Every order creates a complete audit trail from payment capture to revenue recognition—with journal entries generated in real-time.
Order Receipt
Step 1: Payment Capture
When the customer completes checkout, payment is captured by the gateway (Stripe) and recorded as a deposit. This creates an asset (payment held by Stripe) and reduces accounts receivable.
| Account | Debit | Credit |
|---|---|---|
| 101 - Stripe Gateway | $ | — |
| 120 - Accounts Receivable | — | $ |
Note: This entry records the payment at checkout. The Stripe Gateway account is an asset representing funds held by Stripe before settlement.
Step 2: Ship Inventory
When items are shipped to the customer, inventory moves from your warehouse to a clearing account. This tracks that goods have left the warehouse but haven't been invoiced yet. Fulfil uses perpetual inventory accounting.
| Account | Debit | Credit |
|---|---|---|
| 121 - Inventory Shipped (Not Invoiced) | $ | — |
| 140 - Inventory | — | $ |
Note: This entry moves inventory at cost from your warehouse. Account 121 is a clearing account that will be relieved when revenue is recognized in Step 3.
Step 3: Recognize Revenue
When the shipment is marked "Done", revenue is recognized. This is when control of the goods transfers to the customer per ASC 606. COGS is recognized simultaneously, matching expenses with revenue.
| Account | Debit | Credit |
|---|---|---|
| 120 - Accounts Receivable | $ | — |
| 400 - Sales Revenue | — | $ |
| 220 - Sales Tax Payable | — | $ |
| 500 - Cost of Goods Sold | $ | — |
| 121 - Inventory Shipped (Not Invoiced) | — | $ |
Revenue Recognized! This invoice is automatically generated when shipment is marked done. Sales tax is recorded as a liability (pass-through to tax authorities). COGS is matched to revenue per the matching principle.
Step 4: Bank Settlement
When Stripe transfers funds to your bank account, they deduct processing fees. This settlement reconciles the gateway clearing account and records the payment processor fees as an expense.
| Account | Debit | Credit |
|---|---|---|
| 100 - Bank Account (Checking) | $ | — |
| 610 - Payment Processing Fees | $ | — |
| 101 - Stripe Gateway | — | $ |
Note: This entry records the actual cash received in your bank account. Processing fees are expensed when incurred. The Stripe Gateway clearing account is now zero.
Complete Audit Trail
All four steps happen automatically in Fulfil as you process orders. Every transaction creates a complete journal entry with proper debits and credits, giving auditors and finance teams full visibility from order to cash.
Recognize on shipment
Revenue recognized automatically when control transfers—no manual entries
Track unshipped orders
Deferred revenue tracked separately until performance obligations fulfilled
Partial shipments
Revenue allocated proportionally as each line item ships
Real-time reporting
See recognized vs. deferred revenue any time—no waiting for month-end
Handle backorders and pre-orders correctly
When you capture payment but haven't shipped yet, that's deferred revenue—a liability on your balance sheet. Fulfil tracks this automatically and recognizes revenue only when goods transfer to customers.
- Payment recorded to deferred revenue account
- Revenue recognized line-by-line as items ship
- Partial shipments handled automatically
- Perfect for pre-orders and made-to-order models
Reverse revenue recognition correctly
When customers return products, Fulfil automatically reverses the revenue, COGS, and inventory—creating accurate financial records without manual journal entries.
- Revenue reversal when return processed
- COGS reversed and inventory restored
- Restocking fees and return shipping handled
- Exchanges create new revenue transactions
Automatic reversal
Revenue and COGS reversed when return is processed—no manual entries
Inventory restored
Returned goods flow back to inventory with proper valuation
Restocking fees
Partial refunds and restocking fees properly accounted
Exchange handling
Exchanges create new orders with proper revenue recognition
Native GL integration
Built-in General Ledger
Complete chart of accounts and journal entry system included
Real-time posting
Every transaction posts to GL immediately—no batch jobs or delays
Multi-currency support
Revenue recognized in transaction currency with automatic conversion
Multi-entity accounting
Separate books for each legal entity with consolidated reporting
Audit trail
Complete audit trail from order to journal entry to GL posting
One system from order to financial statements
Fulfil includes a complete general ledger that eliminates the need for separate accounting software. Every operational transaction automatically creates proper journal entries—giving you real-time financials without integration complexity.
- No QuickBooks or NetSuite required
- Real-time P&L and balance sheet
- Multi-currency and multi-entity support
- Month-end close is days, not weeks
The 5-step revenue recognition process
Fulfil automates the complete ASC 606 / IFRS 15 framework for recognizing revenue when control transfers to customers
Identify Contract
A sales order creates a binding contract with the customer—payment received, goods to be delivered.
Performance Obligations
Each line item (product, shipping, services) is a separate performance obligation to fulfill.
Transaction Price
Calculate total consideration after discounts, excluding sales tax (which is a pass-through liability).
Allocate Price
Distribute transaction price across performance obligations based on standalone selling price.
Recognize Revenue
Revenue recognized when control transfers—typically when goods ship to the carrier.
All 5 steps happen automatically as you process orders
Frequently asked questions
When is revenue recognized in Fulfil?
Revenue is recognized when control of goods transfers to the customer—typically when shipments are marked "Done" and handed to the carrier. This follows ASC 606 / IFRS 15 standards for revenue recognition.
How does Fulfil handle deferred revenue?
When you capture payment before shipping (like pre-orders or backorders), Fulfil records this as deferred revenue—a liability on your balance sheet. Revenue is automatically recognized line-by-line as each item ships, ensuring compliance with accounting standards.
What happens to revenue when customers return products?
Fulfil automatically reverses revenue, COGS, and inventory when returns are processed. The system creates the appropriate journal entries to properly account for the return, including any restocking fees or partial refunds.
Do I need QuickBooks or NetSuite with Fulfil?
No. Fulfil includes a complete general ledger with chart of accounts, journal entries, and financial reporting. Every operational transaction automatically creates proper accounting entries, eliminating the need for separate accounting software or complex integrations.
Is Fulfil's revenue recognition auditor-approved?
Yes. Fulfil follows ASC 606 / IFRS 15 standards with complete audit trails. Every transaction includes detailed journal entries showing the flow from payment capture through revenue recognition, giving auditors the documentation they need.
See revenue recognition in action
Schedule a demo to see how Fulfil automates revenue recognition from order to financial statements.
Request a Demo