Revenue Recognition Engine

Contract to obligations to schedule to recognized-revenue journals, with deferred-revenue drawdown

Revenue Recognition Engine Contract to obligations to schedule to recognized-revenue journals, with deferred-revenue drawdown 01 / Contract 02 / Obligations 03 / Allocate 04 / Recognize 05 / Ledger Contract · line items · 01 / Contract · signed Contract line items signed Billing · invoices · 01 / Contract · cash Billing invoices cash Obligations · distinct POs · 02 / Obligations Obligations distinct POs Allocation · by SSP · 03 / Allocate Allocation by SSP Schedule · period plan · 04 / Recognize · stored Schedule period plan stored Rec Run · daily, idempotent · 04 / Recognize Rec Run daily, idempotent Rev Journal · double entry · 05 / Ledger Rev Journal double entry Deferred Rev · liability · 05 / Ledger Deferred Rev liability General Ledger · revenue account · 05 / Ledger General Ledger revenue account identify POs split price write plan due entries recognized amt Cr revenue drawdown book liability Legend primary data policy / PII async batch data store

Two clocks

  • • Billing books deferred-revenue liability on cash
  • • Recognition draws that liability down into earned revenue
  • • The gap between them lives on the balance sheet

Replayable core

  • • Schedule is computed once and stored, summing back to allocated price
  • • Recognition run is idempotent per obligation and period
  • • Recognized periods are immutable; changes append forward-looking entries

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