Working Money skill
Design a revenue recognition checklist
Design a revenue-recognition checklist that connects contract facts, accounting policy, calculations, approvals, and ledger evidence.
Turn the applicable accounting policy into a traceable contract review. This workflow is not accounting or legal advice.
When to use
- Use for subscriptions, services, licenses, usage, bundles, marketplaces, returns, incentives, or contract modifications.
- Require a qualified accountant for material or ambiguous conclusions.
- Do not treat this checklist as a substitute for the applicable accounting standard, signed contract, or professional judgment.
Procedure
- Identify entity, customer, contract version, jurisdiction, reporting framework, materiality, policy owner, and review period.
- Link signed terms, amendments, order forms, pricing, acceptance, delivery, usage, billing, credit, refund, and collection evidence.
- Assess approval, rights, payment terms, commercial substance, collectability, contract combination, and enforceability.
- Identify promised goods or services and document whether each performance obligation is distinct.
- Determine fixed and variable consideration, constraints, financing components, noncash consideration, payments to customers, returns, and refunds.
- Allocate transaction price using observable or estimated standalone selling prices and documented methodology.
- Determine point-in-time or over-time recognition, progress measure, acceptance criteria, principal-versus-agent presentation, and contract costs.
- Evaluate options, renewals, discounts, licenses, usage royalties, breakage, modifications, termination, and reassessment triggers.
- Map conclusions to billing, contract asset or liability, deferred revenue, receivable, refund liability, journal, disclosure, and tax handling.
- Require preparer and reviewer signoff, record open judgments, and sample contract-to-ledger plus ledger-to-contract results.
--- name: design-a-revenue-recognition-checklist category: money description: Design a revenue-recognition checklist that connects contract facts, accounting policy, calculations, approvals, and ledger evidence. Use when reviewing new, modified, unusual, or recurring customer arrangements before recording revenue. --- # design-a-revenue-recognition-checklist Turn the applicable accounting policy into a traceable contract review. This workflow is not accounting or legal advice. ## When to use - Use for subscriptions, services, licenses, usage, bundles, marketplaces, returns, incentives, or contract modifications. - Require a qualified accountant for material or ambiguous conclusions. - Do not treat this checklist as a substitute for the applicable accounting standard, signed contract, or professional judgment. ## Procedure 1. Identify entity, customer, contract version, jurisdiction, reporting framework, materiality, policy owner, and review period. 2. Link signed terms, amendments, order forms, pricing, acceptance, delivery, usage, billing, credit, refund, and collection evidence. 3. Assess approval, rights, payment terms, commercial substance, collectability, contract combination, and enforceability. 4. Identify promised goods or services and document whether each performance obligation is distinct. 5. Determine fixed and variable consideration, constraints, financing components, noncash consideration, payments to customers, returns, and refunds. 6. Allocate transaction price using observable or estimated standalone selling prices and documented methodology. 7. Determine point-in-time or over-time recognition, progress measure, acceptance criteria, principal-versus-agent presentation, and contract costs. 8. Evaluate options, renewals, discounts, licenses, usage royalties, breakage, modifications, termination, and reassessment triggers. 9. Map conclusions to billing, contract asset or liability, deferred revenue, receivable, refund liability, journal, disclosure, and tax handling. 10. Require preparer and reviewer signoff, record open judgments, and sample contract-to-ledger plus ledger-to-contract results. ## Done - A versioned checklist records contract evidence, policy analysis, calculation, ledger mapping, judgments, preparer, reviewer, and approval - Contract-to-ledger, ledger-to-contract, allocation, timing, modification, and disclosure checks verify the recorded result