> ## Documentation Index
> Fetch the complete documentation index at: https://docs.stigg.io/llms.txt
> Use this file to discover all available pages before exploring further.

# Credit revenue recognition

## Credit revenue recognition

Stigg gives Finance an auditable trail for credit-based revenue: every grant has a per-unit **cost basis** (how much the customer paid per credit), lifecycle dates (effective/expiry), a **category** (paid or promo), and every burn/expiry/revocation is captured in an **append-only ledger**. This lets you calculate recognized revenue precisely from actual consumption, while keeping deferred balances correct.

### How to operationalize rev rec

1. **Export credit data to your warehouse**\
   Connect a warehouse in **Integrations → Data warehouse** and use the exported credits tables to model rev rec (see the [native integrations overview](https://docs.stigg.io/documentation/native-integrations/overview#data-warehouse) and the [export schema](https://docs.stigg.io/documentation/importing-and-exporting-data/export/schema)).

2. **Model balances by grant**\
   For each grant (`grant_id`): track `amount_granted`, `amount_remaining`, `amount_consumed`, `expires_at`, `category`, and `cost_basis` (per-unit).
   * **Deferred revenue** = `amount_remaining × cost_basis` (paid grants only).
   * **Recognized revenue (consumption)** = `consumed_in_period × cost_basis`.
   * **Breakage (expiry)** = `expired_in_period × cost_basis` (recognized per your policy).
   * **Promotional grants** have zero cost basis and do not generate revenue.

3. **Translate to journal entries** (example policy; align with your accounting rules)
   * **On purchase/grant of paid credits:**\
     Dr Cash/AR; Cr Deferred revenue (for `amount_granted × cost_basis`).
   * **On consumption:**\
     Dr Deferred revenue; Cr Revenue (for `consumed × cost_basis`).
   * **On expiry (breakage):**\
     Dr Deferred revenue; Cr Revenue (for `expired × cost_basis`, timing per policy).
   * **On revocation/refund:**\
     Reverse the appropriate portion of deferred/revenue per your policy.\
     All supporting facts come from the credit **ledger** and **grants** exports.

4. **Reconcile and report**
   * Tie **period consumption** (ledger decrements) × **cost\_basis** to recognized revenue.
   * Tie **ending remaining** × **cost\_basis** to deferred revenue.
   * Review **expired** and **revoked** entries separately for breakage/refunds.

### ERP and downstream systems

Exported credits data can be joined and loaded into your ERP (e.g., NetSuite, SAP) via your existing ETL. Each grant’s cost basis and every ledger event provide the evidence trail auditors expect. Native ERP integrations are on our roadmap; until then, use the warehouse export plus your finance integration to post journals and produce revenue schedules.