What it is
This narrative describes how a customer order becomes revenue and cash, including the contract review for non-standard terms, credit, delivery, billing, the cutoff review and the allowance for credit losses.
The sample steps show the level of detail to aim for. Replace them with the process as it runs, link the controls to the order to cash risk and control matrix and attach a flowchart.
When to use it
- When documenting the revenue cycle for ICFR.
- When revenue recognition policy or systems change.
- To prepare for a revenue walkthrough with the auditor.
What’s inside
- Overview, roles and systems
- Seven sample steps from contract to allowance
- Risks, controls and information used in controls
- Exceptions, changes and sign-off
Standard cited
This template follows COSO 2013 / ICFR documentation. 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
Why include contract review?
Non-standard terms such as rights of return, acceptance clauses or side agreements change when revenue can be recognized. A control that routes them to finance before booking addresses the presumed fraud risk in revenue recognition.
How often should a narrative be updated?
Whenever the process, the systems or the people in it change, and confirmed with the process owner at least once a year.
Related templates
- Risk and Control Matrix: Order to Cash
- Process Flowchart Legend and Conventions
- SOX Control Narrative (ICFR)
- Process Narrative: Procure to Pay
Last updated 11/05/2026. All free templates.