ASC 606 Analysis
Enter and review the accounting judgments. All accounting judgments are yours; allocation, revenue recognition and reconciliation amounts are produced by the deterministic ASC 606 engine and are read-only.
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Sample — Horizon Logistics
Draft completeRecognition · Over time
- Customer
- Horizon Logistics
- Performance obligations
- 3
- Contract
- DEMO-HORIZON
- Transaction price
- $153,000.00
Fictional sample — edit any assumption to explore the accounting.
Billing & Contract Balances
A post-ASC-606 accounting workpaper. The five-step revenue analysis above is unaffected by anything entered here.
How these balances are determined
- Contract asset — revenue recognized exceeds unconditional rights to consideration.
- Unbilled AR — an unconditional right exists, but the customer has not yet been invoiced.
- Billed AR — an unconditional right exists, the invoice has been issued, and the amount remains unpaid.
- Contract liability (deferred revenue) — unconditional rights exceed revenue recognized.
This stage assumes cash collections occur on or after both the invoice date and the date the right to consideration becomes unconditional. Customer deposits and other advance cash receipts are not yet supported.
Billing Schedule
The unconditional-right date drives receivable and contract-balance accounting. The invoice date identifies when an unconditional receivable becomes billed.
Billing Event 1
Cash you recorded is applied to this billing event. Reassign or remove that cash collection first — ARC will not discard recorded cash for you.
Billing Event 2
Cash you recorded is applied to this billing event. Reassign or remove that cash collection first — ARC will not discard recorded cash for you.
Billing Event 3
Cash you recorded is applied to this billing event. Reassign or remove that cash collection first — ARC will not discard recorded cash for you.
Cash collections
Each cash row applies to exactly one billing event. Enter separate rows when one customer payment settles several invoices.
Cash Collection 1
Actual cash
Cash Collection 2
Actual cash
Cash Collection 3
Actual cash
Billing Schedule
| Event | Amount | Unconditional right date | Invoice date | Cash collected | Outstanding |
|---|---|---|---|---|---|
| Billing Event 1 | $75,000.00 | 2027-07-01 | 2027-07-01 | $75,000.00 | $0.00 |
| Billing Event 2 | $39,000.00 | 2028-01-01 | 2028-01-01 | $39,000.00 | $0.00 |
| Billing Event 3 | $39,000.00 | 2028-04-01 | 2028-04-01 | $39,000.00 | $0.00 |
Monthly Contract-Balance Rollforward
| Month | Revenue | Unconditional rights arising | Invoices issued | Cash collected | Billed AR | Unbilled AR | Total AR | Contract asset | Contract liability (deferred revenue) |
|---|---|---|---|---|---|---|---|---|---|
| 2027-07 | $22,295.08 | $75,000.00 | $75,000.00 | $75,000.00 | $0.00 | $0.00 | $0.00 | $0.00 | $52,704.92 |
| 2027-08 | $12,095.09 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $40,609.83 |
| 2027-09 | $11,704.91 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $28,904.92 |
| 2027-10 | $12,095.09 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $16,809.83 |
| 2027-11 | $11,704.91 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $5,104.92 |
| 2027-12 | $12,095.09 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $6,990.17 | $0.00 |
| 2028-01 | $12,095.08 | $39,000.00 | $39,000.00 | $0.00 | $39,000.00 | $0.00 | $39,000.00 | $0.00 | $19,914.75 |
| 2028-02 | $11,314.75 | $0.00 | $0.00 | $0.00 | $39,000.00 | $0.00 | $39,000.00 | $0.00 | $8,600.00 |
| 2028-03 | $12,095.08 | $0.00 | $0.00 | $39,000.00 | $0.00 | $0.00 | $0.00 | $3,495.08 | $0.00 |
| 2028-04 | $11,704.92 | $39,000.00 | $39,000.00 | $39,000.00 | $0.00 | $0.00 | $0.00 | $0.00 | $23,800.00 |
| 2028-05 | $12,095.08 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $11,704.92 |
| 2028-06 | $11,704.92 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
Cumulative Amounts
| Month | Cumulative revenue | Cumulative unconditional rights | Cumulative invoices issued | Cumulative cash collected |
|---|---|---|---|---|
| 2027-07 | $22,295.08 | $75,000.00 | $75,000.00 | $75,000.00 |
| 2027-08 | $34,390.17 | $75,000.00 | $75,000.00 | $75,000.00 |
| 2027-09 | $46,095.08 | $75,000.00 | $75,000.00 | $75,000.00 |
| 2027-10 | $58,190.17 | $75,000.00 | $75,000.00 | $75,000.00 |
| 2027-11 | $69,895.08 | $75,000.00 | $75,000.00 | $75,000.00 |
| 2027-12 | $81,990.17 | $75,000.00 | $75,000.00 | $75,000.00 |
| 2028-01 | $94,085.25 | $114,000.00 | $114,000.00 | $75,000.00 |
| 2028-02 | $105,400.00 | $114,000.00 | $114,000.00 | $75,000.00 |
| 2028-03 | $117,495.08 | $114,000.00 | $114,000.00 | $114,000.00 |
| 2028-04 | $129,200.00 | $153,000.00 | $153,000.00 | $153,000.00 |
| 2028-05 | $141,295.08 | $153,000.00 | $153,000.00 | $153,000.00 |
| 2028-06 | $153,000.00 | $153,000.00 | $153,000.00 | $153,000.00 |
Contract-Balance Reconciliation
| Transaction price | $153,000.00 |
| Total billing events | $153,000.00 |
| Total revenue recognized | $153,000.00 |
| Difference | $0.00 |
| Status | Reconciled |