Spread a contract value across its term and read the schedule period by period. Straight-line ratable recognition, or equal milestones, in line with ASC 606 and IFRS 15.
| Month | Recognized | Cumulative | Deferred |
|---|---|---|---|
| 1 | 10,000 | 10,000 | 110,000 |
| 2 | 10,000 | 20,000 | 100,000 |
| 3 | 10,000 | 30,000 | 90,000 |
| 4 | 10,000 | 40,000 | 80,000 |
| 5 | 10,000 | 50,000 | 70,000 |
| 6 | 10,000 | 60,000 | 60,000 |
| 7 | 10,000 | 70,000 | 50,000 |
| 8 | 10,000 | 80,000 | 40,000 |
| 9 | 10,000 | 90,000 | 30,000 |
| 10 | 10,000 | 100,000 | 20,000 |
| 11 | 10,000 | 110,000 | 10,000 |
| 12 | 10,000 | 120,000 | 0 |
Under ASC 606 and IFRS 15, revenue is recognized as the performance obligation is satisfied. For a service delivered evenly over time, that is straight-line. For distinct milestones, it is recognized as each is met.
The contract value is divided evenly across the term. Each month recognizes the same amount, the cumulative total climbs steadily, and the deferred balance falls to zero at the end.
The value is split into equal milestones spread across the term. Nothing is recognized between milestones, then a chunk is recognized when each is met. Use it as a simple stand-in for distinct obligations.
Each row shows what is recognized that month, the running total recognized, and what is still deferred on the balance sheet. Rounding is trued up in the final period so the total lands exactly.
The schedule follows the revenue-recognition standards below. Check the treatment for your contract against the primary sources.
This is an example schedule based on the inputs. It is not accounting advice. Real recognition depends on the performance obligations in the contract, variable consideration, and your revenue policy. Confirm the treatment with your accounting team.
Rivane builds recognition schedules from your contracts and posts them automatically, so deferred and recognized revenue stay in sync with the ledger.
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