Revenue Recognition
BeanStack reads your executed contracts, identifies performance obligations, builds recognition schedules, and posts monthly revenue entries automatically. Amended contracts update their own schedules.
Revenue recognition lives in a spreadsheet maintained by one person.
Revenue recognition is the most compliance-sensitive workflow in accounting. For most mid-market companies, it lives in a spreadsheet maintained by one person who has been at the company long enough to remember which contracts have variable consideration clauses. When that person leaves, the spreadsheet becomes a liability. BeanStack replaces the spreadsheet. The knowledge lives in the system, not in a person.
Extracts contract value, dates, performance obligations, payment terms, and variable consideration provisions from your executed contract document.
Compliant recognition schedule generated: straight-line, milestone-based, or usage-based per contract terms. Multi-deliverable contracts split into separate performance obligations with SSP applied per ASC 606-10-32.
First of each period, deferred-to-earned entries posted automatically with source contract attached for full traceability.
Updated terms extracted from the amended contract document, schedule recalculated, cumulative catch-up adjustment posted per ASC 606-10-25-13.
Most common pattern, out of the box. Single performance obligation, recognized evenly over contract term.
Revenue recognized when defined deliverables complete. Milestones tracked in the contract, not managed manually.
Transaction price allocated across performance obligations using SSP. Each obligation schedules independently.
Constrained estimate approach per ASC 606-10-32-11. Estimates updated automatically as actuals clarify.
Does BeanStack support IFRS 15 as well as ASC 606?
Yes. IFRS 15 and ASC 606 share the same five-step model. You select the applicable standard in your organization settings.
What happens when a contract is amended mid-period?
BeanStack extracts the amended terms from the updated contract document, recalculates the schedule, and posts any required cumulative catch-up adjustment in the current period — automatically.
Can I override the AI's revenue recognition decision?
Yes. You can adjust any recognition schedule, modify the performance obligation split, and override the AI's classification at any time. All overrides are logged with user identity and timestamp.
Request a demo and we'll walk through your contract portfolio and show you how the schedules would be built.