09. Revenue Recognition
Manages GAAP-compliant revenue recognition for UTA's contracts following milestone-based and performance over time recognition patterns, handling corrections and adjustments as needed.
09. Revenue Recognition Productboard component link
09.01. Milestone Revenue Recognition Processing
Manages revenue recognition based on service/performance dates from specific milestone events and achievements with capabilities for timing corrections and validation.
09.01.01. Milestone event identification and tracking — Identifies and tracks specific milestone events that trigger revenue recognition including performance completions, script deliveries, and other contractual milestones. Maintains milestone status and completion dates linked to underlying booking records.
09.01.02. Milestone revenue calculation and recognition — Calculates revenue amounts associated with completed milestones based on contract terms and triggers revenue recognition entries. Links milestone completion to specific booking line items and commission calculations. Milestone completion can start a performance over time revenue recognition process.
09.01.03. Early milestone recognition correction — Identifies situations where milestone revenue was recognized prematurely and creates correcting entries to reverse improper recognition until proper milestone completion occurs.
09.01.04. Late milestone recognition processing — Processes milestone completions that were not timely reported, calculating catch-up revenue recognition and any associated adjustments to commission recognition timing. Adjusting entries will only post to open periods but will show which periods are being corrected.
09.01.05. Variable compensation management — When payment on variable compensation (participations, residuals, etc.) is received, revenue is forecasted and accrued at 90% of the payment for the next two cycles and trued up when the next statement arrives.
09.02. Performance Over Time Revenue Recognition
Handles straight-line revenue recognition across service periods with capabilities for date changes and retroactive corrections.
09.02.01. Service period determination and tracking — Determines appropriate service periods based on contract start and end dates, tracking performance periods for all deals requiring over-time revenue recognition.
09.02.02. Straight-line revenue calculation — Calculates monthly or periodic revenue recognition amounts using straight-line methodology across defined service periods.
09.02.03. Performance date change processing — Processes changes to service start and end dates, recalculating revenue recognition schedules and creating adjustment entries for periods already recognized.
09.02.04. Partial period revenue calculation — Calculates appropriate revenue recognition for partial periods when service periods begin or end mid-month or when changes occur during performance periods.
09.03. Revenue Recognition Validation and Control
Ensures GAAP compliance and proper authorization for all revenue recognition entries with documentation and approval workflows.
09.03.01. GAAP compliance verification — Verifies that all revenue recognition entries comply with applicable GAAP standards including ASC 606 requirements for contract revenue recognition.
09.03.02. Period end cutoff flagging — Identifies activity within three business days of the month end to facilitate proper accrual accounting.
09.03.03. Revenue recognition approval workflow — Implements approval workflows for revenue recognition entries, particularly for corrections and adjustments that affect prior periods or significant amounts.
09.03.04. Contract modification impact analysis — Analyzes the impact of contract modifications on revenue recognition timing and amounts, determining appropriate accounting treatment for changes.
09.03.05. Revenue recognition documentation — Maintains documentation supporting all revenue recognition decisions, timing, and amounts for audit and compliance purposes.
09.04. Revenue Recognition Reporting and Analysis
Provides comprehensive analytical and reporting capabilities for revenue recognition including scheduling, variance analysis, and forecasting.
09.04.01. Revenue recognition schedule generation — Generates detailed revenue recognition schedules showing current and future recognition timing for all contracts and performance obligations.
09.04.02. Recognition variance analysis — Analyzes variances between planned and actual revenue recognition timing, identifying patterns and potential process improvements.
09.04.03. Performance obligation tracking reports — Provides reports tracking the status of performance obligations across all contracts, showing completed, in-progress, and pending obligations.
09.04.04. Revenue recognition audit support — Provides comprehensive reporting and documentation to support internal and external audit requirements for revenue recognition compliance. Provides the ability to pull audit support data by booking.
09.04.05. Management revenue reporting — Delivers management reporting on recognized revenue by various dimensions including department, agent, client, and time period with variance analysis.
09.04.06. Recognition timing forecast — Provides forecasting capabilities for future revenue recognition based on current contracts, performance schedules, and historical completion patterns.