Revenue Contracts & Recognition

The Revenue workspace brings the client’s ASC 606 contract register, recognition schedules, and review views together. Use it for revenue streams with performance obligations and a recognition pattern that needs to be tracked separately from billing.

For a simple advance-billed item that only needs even monthly recognition, a deferred-revenue schedule may be enough. Do not place the same revenue stream in both the contract register and a deferred-revenue schedule; that can cause duplicate recognition. Kraal surfaces an overlap warning when both sources are active, but the reviewer still needs to confirm they represent different revenue streams.

Start with revenue readiness

Select a client, open Finance → Revenue, and read the Revenue recognition readiness panel before changing setup or relying on a close proposal.

Status	Meaning
Ready	The client is eligible for policy-gated revenue recognition. Normal review and posting controls still apply.
Needs setup	Required contract, account, entity, currency, or other setup is incomplete. Follow the blocker shown in the panel.
Waiting for review	Setup or terms are awaiting an authorized review decision.
Blocked	Revenue recognition cannot proceed until the listed issue is cleared.
Not available	Revenue recognition is not enabled or readiness could not be confirmed. Read-only views may still be available, but do not treat the client as ready.

The panel also shows whether writes are enabled. Do not work around a disabled or blocked state by recreating the entry elsewhere; resolve the stated blocker or ask an authorized firm administrator to review the setup.

Who can do what

• Owners and Administrators can create or change revenue contracts and performance obligations.
• Managers can review eligible revenue work for clients assigned to them, but they do not control contract setup.
• Employees have read-only access to assigned clients.
• Everyone remains limited to the clients they are allowed to work with.

If an Add, Edit, or Delete control is absent, first check your role and the readiness panel. A hidden setup control is not evidence that the contract is locked or missing.

Set up a contract

In the accounting revenue register:

1. Add the contract name, customer, transaction price, contract dates, and a source reference that lets a reviewer return to the agreement or order.
2. Record billed-to-date using the authoritative amount shown by the client's billing records. Billing and recognition are separate: an invoice does not by itself prove that revenue was earned.
3. Add each distinct performance obligation and allocate the transaction price across the obligations.
4. Select the recognition method and complete its dates, periods, milestones, usage, or delivery information.
5. Assign the revenue and deferral accounts.
6. Confirm the obligation allocations tie back to the contract transaction price before relying on the schedule.

For the recognition methods, review policy, catch-ups, and contract asset/liability calculation, see Revenue Recognition in Close Items.

Use the four Revenue views

Dashboard

The Dashboard summarizes:

• revenue recognized this month and year to date;
• deferred revenue;
• remaining performance obligations;
• recognition by month;
• the deferred-revenue rollforward; and
• remaining obligations grouped by expected recognition window.

Select an as-of date and review the trailing and forward windows before using the figures in a close memo or forecast.

Contracts

The Contracts view is a read-only review register with recognized-to-date, deferred, and remaining amounts. Open a contract to inspect its obligations and the schedule lines behind each figure. Create and edit contract setup from the accounting revenue register, not from this review page.

Customers

The Customers view groups revenue positions by customer and shows whether the contract customer is linked to the accounting customer record. Unmatched or ambiguous customer links should be resolved before using customer-level analysis for collections or concentration review.

Transactions

The Transactions view lists the recognition schedule lines behind the dashboard. Filter by month, status, method, contract, or as-of date, then open the related contract when a line needs support.

The Contracts, Customers, and Transactions pages offer CSV and Excel exports. These are static snapshots of the selected filters, not formula-driven working papers.

Scope and currency disclosures

Read the disclosure above the revenue figures every time you change client or entity scope:

• Client-wide means the figures include all entities under the client, even if the workspace header names one entity.
• Partly in scope means some supporting reads honored the selected entity but the revenue totals remain client-wide.
• If amounts are shown without a currency, do not assume USD and do not add them to a denominated report. Resolve missing or mixed currency setup first.
• A partial-read warning means one or more sources were unavailable. Treat the affected totals as incomplete until the page loads without that warning.

Kraal does not silently turn unknown or mixed currency into a single reporting currency. The absence of a currency label is a review finding, not permission to infer one.

Month-end review checklist

• Read readiness, scope, currency, and partial-read notices first.
• Tie obligation allocations to the signed contract and approved changes.
• Confirm milestones, delivery dates, and usage with current evidence.
• Reconcile billed-to-date to the authoritative billing support.
• Review recognized-to-date, deferred revenue, and remaining obligations at the same as-of date.
• Investigate any untied rollforward row before relying on the total.
• Confirm contract assets and liabilities agree with the relationship between billing and recognition.
• Clear configuration gaps before close; do not post a partial contract batch around a blocked obligation.

See also:

• Close Items in Depth
• Corrections & Adjustments
• Team, Roles & Permissions