What it is
A subscription bundled with implementation, support and training has to be split into performance obligations, and the contract price allocated to each on relative stand-alone selling price. Revenue then runs ratably for the subscription and at a point in time for the rest. This workbook does the allocation and builds the schedule an auditor tests.
Enter one row per performance obligation with the contract ID, term, SSP, pattern, contract price and billings. The workbook allocates the price, recognizes revenue to the as-of date, builds a 24-month waterfall with revenue before and after the window, and ties deferred revenue and contract assets to the ledger.
When to use it
- At each close, to support deferred revenue and the contract asset balance.
- When auditing a population of multi-element contracts, to select and recompute items.
- To forecast the revenue already contracted for the next 24 months.
What’s inside
- Contracts tab: 60 obligation rows with allocated price, months elapsed, revenue to date and deferred revenue or contract asset
- Checks for price differences within a contract, missing terms and missing SSP
- Waterfall tab: monthly revenue for 24 months with before-window and after-window balances
- Tie of deferred revenue and contract assets to the ledger, with a completeness check on the waterfall
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
How is the discount allocated?
In proportion to relative SSP across all obligations in the contract. If observable evidence shows the discount relates to specific obligations, adjust the SSP inputs and document the evidence.
What revenue convention does the waterfall use?
The start month counts as a full month, and ratable revenue is the allocated price divided by the term in months. Change the formulas if your policy is daily or half-month.
Why is deferred revenue shown net of contract assets by row?
The workbook shows each obligation row separately. Contract assets and liabilities are presented net by contract, so combine the rows of one contract before presenting and tie the net to the ledger.
Related templates
- ASC 606 Revenue Recognition Schedule
- Deferred Revenue Rollforward and Ratable Recompute
- Audit Program: SaaS and Software Company
- SaaS Capitalized Commissions Schedule (ASC 340-40)
Last updated 11/05/2026. All free templates.