ASC 606 Revenue Allocation Calculator
Allocate transaction price across performance obligations using standalone selling prices. Monthly recognition schedule and sample journal entries generated below.
Fixed Bundle
$152,000
Variable (Marketplace)
$10,000
Total Contract Value
$162,000
Contract Inputs
Enter contract amounts and standalone selling prices
Contract Term
months
Fixed Components
Subscription
$
$
AI Credits
$
$
Onboarding Services
$
$
Hardware
$
$
Variable Components
Marketplace Commission
%
$
Estimated annual fee: $10,000
SSP Allocation
Relative standalone selling price method (ASC 606-10-32-31)
| Performance Obligation | SSP | % of Total | Allocated Amount |
|---|---|---|---|
| Subscription License | $132,000 | 77.9% | $118,372 |
| AI Credits | $2,500 | 1.5% | $2,242 |
| Onboarding Services | $30,000 | 17.7% | $26,903 |
| Hardware | $5,000 | 2.9% | $4,484 |
| Total Fixed Bundle | $169,500 | 100.0% | $152,000 |
Bundle Discount: Transaction price ($152,000) is $17,500 below sum of SSPs ($169,500). Discount allocated proportionally to each PO under ASC 606-10-32-28.
Variable Consideration — Marketplace Fee: $10,000/yr estimated. Recognized as earned each period under the variable consideration constraint (ASC 606-10-32-11). Not included in fixed bundle allocation.
Monthly Revenue Schedule
12-month recognition schedule by performance obligation
| Month | Subscription | AI Credits | Onboarding | Hardware | Marketplace | Monthly Total |
|---|---|---|---|---|---|---|
| Month 1 | $9,864 | $187 | $13,451 | $4,484 | $833 | $28,820 |
| Month 2 | $9,864 | $187 | $13,451 | — | $833 | $24,336 |
| Month 3 | $9,864 | $187 | — | — | $833 | $10,884 |
| ... 9 more months (months 4–12) follow same pattern ... | ||||||
| Total (12 mo) | $118,372 | $2,242 | $26,903 | $4,484 | $10,000 | $162,000 |
Sample Journal Entries
Auto-generated based on contract structure — for illustrative purposes
| Account | Debit | Credit |
|---|---|---|
Accounts Receivable | $152,000 | — |
Contract Liability (Deferred Revenue) | — | $152,000 |
| Totals | $152,000 | $152,000 |
| Account | Debit | Credit |
|---|---|---|
Cash | $152,000 | — |
Accounts Receivable | — | $152,000 |
| Totals | $152,000 | $152,000 |
| Account | Debit | Credit |
|---|---|---|
Contract Liability (Deferred Revenue)(release to revenue) | $27,986 | — |
Subscription License Revenue($118,372 ÷ 12 mo) | — | $9,864 |
AI Credits Revenue($2,242 ÷ 12 mo) | — | $187 |
Professional Services Revenue — Onboarding(POC 50% month 1) | — | $13,451 |
Hardware Revenue(point-in-time on delivery) | — | $4,484 |
| Totals | $27,986 | $27,986 |
| Account | Debit | Credit |
|---|---|---|
Accounts Receivable — Marketplace | $833 | — |
Marketplace Commission Revenue(5% of monthly volume) | — | $833 |
| Totals | $833 | $833 |
This calculator is for illustrative and discussion purposes only. Consult your accounting team and auditors for final ASC 606 treatment.