When a customer initiates their order the contract is identified and a deferred revenue liability is created.
This can be seen on the Journal Entries page in the At Order section:
Credit (to increase) a deferred revenue liability, which is broken out into its components of gross sales and shipping revenue.
Credit (to increase) a sales tax liability for the amount of sales tax associated with the orders sold.
Refunds are recorded in the period in which the refund or cancellation is processed.
Debit (to increase) the accounts receivable asset to reflect an expectation of future cash of expected orders net of refunds.
Because the obligation of merchandise or a subscription has not been fulfilled, the performance obligations, as defined in ASC 606, have not been met so revenue has not been recognized yet.