What it is
Contract balances are the link between billing and revenue. This workbook rolls each contract from opening to closing using billings, collections, write-offs and revenue recognized, and classifies the closing net position as a contract asset or a contract liability by contract.
It carries the figures the contract balance disclosure needs, including revenue recognized from the opening contract liability, and ties receivables, contract assets, contract liabilities and revenue to the ledger with zero-difference checks.
When to use it
- At each period end for any entity that bills in advance, in arrears or on milestones.
- When preparing the contract balance disclosure for the financial statements.
- When an auditor asks for the roll of unbilled and deferred revenue by contract.
What’s inside
- Thirty contracts with opening balances, billings, collections, write-offs and revenue
- Closing net position classified as asset or liability by contract
- Revenue recognized from the opening contract liability, with a flag
- Ledger tie-out for receivables, contract assets, contract liabilities and revenue
- Disclosure figures block
Standard cited
This template follows ASC 606. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use.
Questions
What is the difference between a contract asset and a receivable?
A receivable is an unconditional right to payment, where only time must pass. A contract asset is a right to consideration that depends on something else, such as completing another performance obligation. Billing converts a contract asset into a receivable.
Are contracts netted against each other?
No. The net position is measured for each contract, and contracts in an asset position and in a liability position are presented separately.
What does the opening-liability revenue figure support?
The disclosure of revenue recognized in the period that was included in the contract liability balance at the start of the period. Enter it by contract and the Tie-out tab totals it.
What should I do when a tie-out does not reach zero?
Find the contract or ledger account that is missing or misclassified. Common causes are billings posted to revenue, a customer deposit recorded as a receivable credit and a contract asset held in an unbilled receivable account.
Related templates
- ASC 606 SSP Allocation Workbook
- Deferred Revenue Rollforward and Ratable Recompute
- ASC 606 Revenue Recognition Schedule
- Disclosure Checklist: Revenue (ASC 606)
Last updated 11/05/2026. All free templates.