Revenue recognition schedules, built before you open them
Contracts with several deliverables usually mean a spreadsheet per arrangement, with standalone selling prices typed in, allocations recalculated, and recognition schedules extended by hand every month. Ledge's Accounting Agent builds the revenue recognition working paper from your contract and billing data, allocates the transaction price across performance obligations using your logic, and drafts the entries for review.
What the Accounting Agent prepares
- An Excel working paper with a tab per contract or arrangement, live formulas, and every figure traced to source
- Transaction price allocated across performance obligations, based on the standalone selling prices you maintain
- Recognition schedules for each obligation, point in time or over time, rolled forward every period
- A tie-out of recognized and deferred revenue to the GL
- Drafted revenue and deferral entries, with the working paper attached as backup
How it works
- Pull the data. Contracts, billing records, and GL balances come in from your ERP, billing system, and CRM.
- Prepare the work in your logic and format. The Accounting Agent applies your allocation method, recognition rules, and working paper layout, the same way every period.
- Review and approve. You check the schedule and adjust judgment calls. The entry posts to your ERP only after you approve it.
What stays in your control
- Policy judgments and allocation inputs, such as standalone selling prices, stay with your team
- Nothing reaches your ERP without your approval
- Every schedule line links back to the contract and billing record it came from
Standard note
ASC 606 and IFRS 15 require the transaction price to be allocated to each performance obligation in a contract and recognized as each obligation is satisfied.
FAQ
Can Ledge automate ASC 606 revenue recognition?
Ledge prepares the ASC 606 working paper and drafts the entries, and your team reviews and approves them. The Accounting Agent runs deterministic code configured to your policy, so the allocation and schedule are calculated the same way every month.
Does it handle multi-element arrangements?
Yes. The Accounting Agent allocates the transaction price across each performance obligation in the contract using the standalone selling prices your team provides, then schedules recognition for each one.
How does this relate to the deferred revenue schedule?
The revenue recognition working paper calculates what to recognize, and the deferred revenue schedule rolls forward what remains. Ledge prepares both, and they tie to each other and to the GL.
