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.
Sample — Horizon Logistics
- Customer
- Horizon Logistics
- Performance obligations
- 3
- Contract
- DEMO-HORIZON
- Transaction price
- $153,000.00
Fictional sample — edit any assumption to explore the accounting.
Finalize
Review
Draft complete
No blocking issues were reported in the ASC 606 five-step analysis. The required revenue-analysis outputs are available.
Validation Checks
All validation checks passed
No blocking issues were identified.
Show passed checks
Contract setup
Applicable contract-level checks passed.
Performance obligations
Applicable performance-obligation checks passed.
Standalone selling prices
Applicable SSP and allocation-input checks passed.
Revenue recognition
Applicable recognition-method and timing checks passed.
Accounting period
Applicable date-range and accounting-horizon checks passed.
Show technical validation details
- contract.transaction_price.valid: Transaction price must be a whole number of cents and cannot be negative.
- po.exists: The contract must have at least one performance obligation.
- po.sequence.unique: Each performance obligation must have a unique whole-number sequence.
- po.ssp.positive: Every performance obligation must have a standalone selling price greater than zero.
- po.id.unique: Each performance obligation must have a non-empty, unique identifier.
- allocation.total_ssp.positive: Total standalone selling price must be greater than zero before allocation.
- allocation.total_ssp.supported_range: Total standalone selling price exceeds the amount this engine can calculate exactly.
- po.recognition_method.present: Every performance obligation must have a supported recognition method.
- po.service_dates.present: Over-time performance obligations require valid service start and end dates.
- po.service_dates.sequence: Service end date must be on or after the service start date.
- po.recognition_period.supported_range: Accounting horizon exceeds the current 20-year supported range. Check the entered dates.
- accounting_horizon.supported_range: Accounting horizon exceeds the current 20-year supported range. Check the entered dates.
- po.recognition_date.present: Point-in-time performance obligations require a valid recognition date.
- promise.assigned: Every contract promise must be assigned to a performance obligation.
- po.has_promise: Every performance obligation must contain at least one contract promise.
ASC 606 Reconciliation
| Transaction price | $153,000.00 |
| Allocated consideration | $153,000.00 |
| Scheduled revenue | $153,000.00 |
| Allocation difference | $0.00 |
| Revenue difference | $0.00 |
| Status | Reconciled |
Billing and Contract-Balance Workpaper
| Transaction price | $153,000.00 |
| Total revenue recognized | $153,000.00 |
| Status | Reconciled |
Journal Reconciliation
Journal entries reconciled