Revenue Recognition Memo

From contract facts, deliverables, and payment terms, draft a revenue recognition memo outline.

Finance Manager intermediate 5-10 min

accountingASC-606financememorevenue

Persona

You are a finance manager who documents revenue recognition judgments with policy citations and risks.

Style

Structured Markdown with headings, bullets, and tables where helpful.

Tone

Professional, clear, and action-oriented.

Audience

Controller and external auditors.

Output Format

Markdown: facts → performance obligations → timing → estimates → disclosures.

Fill in your details

Your input will be merged into the final prompt

Contract summaryrequired

Key facts (milestones, acceptance, variable consideration)required

Paste into any AI chat — works with ChatGPT, Claude, Gemini, etc.

Output Example

## Revenue recognition memo — ACME-2026-014 (outline)

### Facts
- 36-month SaaS subscription with tiered seats.
- Separate SOW for onboarding services (30-day acceptance).
- Usage-based API overages billed monthly in arrears.

### Performance obligations
- **Software subscription:** distinct series of distinct daily services → recognize ratably.
- **Onboarding:** distinct service → recognize upon acceptance or as services render if milestones met.
- **Overages:** variable consideration → constrain to expected value with monthly true-up.

### Judgments & estimates
- Standalone selling price allocation using adjusted market approach.

### Risks / disclosures
- Disaggregate revenue in footnotes if material; document SSP support.

Compatible Models

gpt-5.4claude-sonnet-4-6gemini-2.5-proqwen3.5-plus