# Revenue contract review (IFRS 15 / ASC 606)

> Revenue contract review (IFRS 15 / ASC 606): Performance obligations, variable consideration Checked: cross-checked. Produces contract summaries, recognition schedule.

Source: https://www.sumarity.ai/library/revenue-contract-review/

Finance and accounting 

# Revenue contract review (IFRS 15 / ASC 606)

Reads customer contracts, order forms, billing schedules. Produces contract summaries, recognition schedule. Code works out every figure, the Judgement Engine answers the narrow questions, and whatever stays uncertain goes to a person.

Cross-checkedClose and accounting
Start from this workflowMore for finance  

What it decides

## Narrow questions, each with a check behind it.

Performance obligations, variable consideration
Cross-checked: contract terms, billing. A second source has to agree: a register, a contract, a list. When it does the judgement settles; when it doesn't, a person decides.

| Reads | Customer contracts, order forms, billing schedules 
| Produces | Contract summaries, recognition schedule 
| Who signs | A person on your team, with every figure traced to its document and every call on record 
| Process | Close and accounting 
| Industry | Finance and accounting    

See it run

## Every line, decided where it's safest.

An example run. Each stage lights up as a line is decided there; pick a stage to see its lines.

ReadsCustomer contracts, order forms, billing schedulesCodeReads, matches, ties out and works out every figure.JudgementPerformance obligations, variable consideration. Settles only when it clears the cutoff and a second source agrees.A personGets whatever stays uncertain, with the evidence. Their ruling tunes the next run.ProducesContract summaries, recognition schedule  
Revenue contract review (IFRS 15 / ASC 606) · example run Example run  

| Ref | Item | Value | Decided by  
| C-1201 | SaaS subscription, 3 yearsOne obligation, recognised over time | 36,000.00 | Code · scheduled 
| C-1202 | Licence plus setupSetup is distinct · 0.91 · priced separately | 54,000.00 | Engine · cross-checked 
| C-1203 | Volume rebate clauseVariable consideration · 0.87 | −4,000.00 | Engine · cross-checked 
| C-1204 | Free months on renewalMaterial right or a discount? · 0.64 |  | To a person 
| C-1205 | Hardware sold outrightRecognised on delivery | 12,500.00 | Code · on delivery  
|  

Settled 4 To a person 1 Settled wrong 0      Illustrative lines. Amber rows are the Judgement Engine's calls; each settles only above its cutoff and when its check agrees.    

What it could save

## Your volumes in. Your hours out.

In our tests, between 24% and 42% of items still went to a person after tuning. Set your own share; a pilot measures it on your data.

Items per run 
Runs per month 
Minutes per item by hand 
Cost per hour

Share of items that still need a person: 30%  

By hand today80 ha month 
With Sumarity24 ha month, for the items people decide 
Saved56 hCHF 53,760 a year    

Related

## Start from what's closest.

### Close and accounting in other work

Finance

### Balance sheet account reconciliation and certification

What explains each balance; whether support is enough

Proven by codeFinance

### Manual journal entry review

Whether an entry is supported, authorised, unusual

Cross-checkedFinance

### Accruals review

Whether an accrual is needed and its size is supported

Checked by the outcome

### More for finance

### Bank reconciliation

Which ledger entry a bank line is; why a line is unmatched

Proven by codeTested

### Card and payment-processor settlement reconciliation

Which sales a payout covers; fee and chargeback lines

Proven by code

### Cash application

Which open invoices a receipt pays; short-pays and deductions

Proven by code  

Questions

## What buyers ask

What happens when Sumarity isn't sure?

Nothing settles below the cutoff, or when the check disagrees. The item goes to a person in the inbox with what the engine saw, its best answer and the runner-up. The person's ruling is kept and tunes the next run.

How are its judgements checked?

A second source has to agree: a register, a contract, a list. When it does the judgement settles; when it doesn't, a person decides.

Can we change it to fit how we work?

Yes. Start from this workflow and describe your differences in plain words. The design assistant revises it, the validator checks it, your expert reviews it on the canvas, and your admin publishes it.

Does it read our files as they are?

Yes: spreadsheets and CSV in any layout, PDFs, bank formats and e-mail attachments. Sumarity suggests how each column maps, proves the mapping on a sample and remembers it once a person confirms it.

Where does our data go?

Sumarity runs in Zurich. Your data, backups and logs are stored in Switzerland.

How does it get better?

Your team's rulings become an answer key. Better questions and cutoffs are proposed, tested on data they haven't seen, and published only when your admin approves. It improves itself, with permission.

## Start from this workflow. Run it on your data.

A pilot runs alongside your own process for a few weeks, at our cost, and ends in a line-by-line comparison.

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