The allocation posts its own schedule
Each obligation releases on the method the agreement gives it, month by month, without anyone rebuilding a workbook.
Revenue recognition
Every entry traces back to the clause that made it.
Obligations are classified out of the agreement, the price is allocated by standalone selling price, and each entry names the contract line behind it.
Every entry names its clause
Obligations come out of the agreement, and the transaction price is allocated by standalone selling price.
Use cases
- ASC 606
- IFRS 15
- Audit preparation
- Multi-element contracts
Verlix handles
Obligation classification, SSP allocation, and the journal entries behind every schedule.
Every entry names its contract line
Twenty-eight journal lines post over the year, and each one traces back to the clause that made it.
Revenue recognition · the deferred balance
Deferred revenue is not a plug. It is the gap between two schedules
Account 4471 is billed once, in advance, and recognised across twelve months. The distance between the two lines is the deferred balance on any day an auditor asks for it.
Read the gap on any month and that is the deferred balance for it. Nothing here is a period-end adjustment.
Cumulative, twelve months · Account 4471MSA-4471 · billed annually in advance
Recognised against billed, twelve months: rose from 126k at M1 to 480k at M12 across 12 points; range 126k to 480k.
Revenue recognition · what is left
What is left to recognise, on the day you are asked
The same schedule read backwards is the disclosure: $278,000 still owed at the first quarter end, and nothing left at the fourth. Verlix reads it off the contract rather than off a spreadsheet built the week before the audit.
The fourth quarter closes at zero because the contract does, so its bar is the baseline itself.
Still to recognise at each quarter end · Account 4471ASC 606-10-50-13
Still to recognise at each quarter end, Account 4471: 1 series across 4 buckets.
Revenue recognition · a modification
A modification is not a new contract. It re-allocates what is left
Account 5218 added a module in month seven. The $90,000 joins the $150,000 still unrecognised, and the remaining six months post $40,000 each instead of $25,000.
Prospective treatment, so nothing already posted is restated. The remaining obligation is what changes.
Remaining obligation, re-allocated · Account 5218Prospective, from month seven
Remaining obligation, re-allocated, Account 5218: opens at 360,000.00, 2 movements, closes at 240,000.00.
Hand the auditor a trail, not a workbook.
Free up to $1M ARR. Connect the ledger and the first schedule posts today.