Revenue Recognition Schedule for ASC 606 with Multiple Performance Obligations
โ Accountant
Seed: Contract table with TransactionPrice, PerformanceObligations (split), AllocationRule; Formula: Allocate = TransactionPrice * AllocationPctProfessional Guide
This Excel template operationalizes ASC 606 revenue recognition for contracts with multiple performance obligations. Break down contracts into deliverables, allocate transaction price based on standalone selling prices using lookup tables, and recognize revenue as performance obligations are satisfied (over time or at a point). Implement schedules that produce monthly recognized revenue and deferred revenue balances, and generate journal entries for recognition and deferral. Include support fields for contract modifications, variable consideration caps and constraint tests. Maintain audit trails and link to source contract references for control purposes.