📊

ASC 606 / IFRS 15 the Way Auditors Want It

Kantivo implements the five-step revenue model the way standards setters intended: a single contract decomposed into separate performance obligations, prices allocated by standalone selling price, modifications and variable consideration handled correctly, and disclosure reports your auditor will actually accept.

Start Free Trial

Many Obligations Inside a Single Deal

Real revenue contracts rarely contain just one promise. A typical SaaS sale wraps software access, customer support, onboarding, and training into one document — but each is a distinct deliverable that earns revenue on its own pace. Kantivo represents that reality directly: every obligation gets its own dates, recognition method, and ledger accounts.

  • Add as many obligations as a contract truly contains
  • Choose the right pattern per obligation: point-in-time, ratable, milestone, percent-complete, or usage-based
  • Override the deferred and recognized accounts at the obligation level
  • Older single-stream contracts continue working untouched — no forced rewrites
[Performance Obligations Workspace]

SSP Library With Transaction-Price Allocation

Each product or service in your catalog carries a standalone selling price (SSP) that's effective-dated. When a deal closes at a bundled discount, Kantivo distributes the transaction price across obligations using relative SSP — or the residual approach when an obligation lacks an observable price — and lays out the math so anyone reviewing can follow it.

  • SSP per item with full revision history and notes
  • Recompute SSP from invoice history (median or average) with sample-size protection
  • Three allocation modes: relative SSP, residual, or manual override
  • Allocations always tie back to the transaction price exactly
[SSP Allocation Engine]

Mid-Term Changes Treated the Right Way

Customers upgrade. Customers downgrade. Customers renew or cancel. ASC 606 prescribes three different accounting treatments depending on the change — and choosing the wrong one is exactly the kind of error auditors flag. Kantivo recommends the correct treatment for every modification, requires explicit accountant approval before posting, and stores a snapshot of the contract before and after.

  • Five modification types: add an obligation, reduce, extend the term, reprice, cancel
  • Auto-recommendation between separate-contract, cumulative catch-up, and prospective treatments
  • Mandatory approval workflow — overrides require a documented reason
  • Before-and-after JSON snapshots saved for every modification
[Modification Wizard]

Variable Consideration With a Constraint

Not every dollar in a contract is fixed. Refund estimates, rebates, volume tier discounts, and performance bonuses all change the amount Kantivo recognizes. Estimate the variable portion using either the expected-value or most-likely-amount method, apply a probability constraint, and Kantivo shows the constrained number that flows into recognition.

  • Four consideration types: refund estimate, rebate, performance bonus, volume discount
  • Estimation method per obligation: expected value or most-likely amount
  • Per-obligation constraint percentage with a company-wide default
  • Live preview as you change the underlying numbers
[Variable Consideration Editor]

Tie Each Invoice to a Specific Obligation

Cash flow rarely moves on the same calendar as revenue recognition. Kantivo lets you bind every customer invoice (or invoice line) to a specific obligation, then computes the gap automatically — recognized ahead of billing produces a contract asset; billing ahead of delivery produces a contract liability. The classification is automatic and always correct.

  • Bind any customer invoice line to its underlying obligation
  • Per-contract reconciliation: contract value, transaction price, billed, recognized
  • Automatic split between contract assets and contract liabilities
  • Over-binding is prevented — Kantivo refuses to exceed an invoice's unbound balance
[Invoice-to-Obligation Binding]

Four Disclosure Reports Auditors Will Ask For

Anyone preparing for an audit, a financing round, or an acquisition needs more than journal entries — they need disclosure reports built to survive review. Kantivo generates all four with monthly, quarterly, and annual grouping options and PDF / Excel export.

  • Revenue Waterfall — recognized plus future scheduled revenue per period with cumulative totals
  • Remaining Performance Obligations — un-recognized balances grouped by method, expected period, or contract
  • Contract Asset / Liability Rollforward — beginning and ending balances with net period change
  • Deferred Revenue Rollforward — beginning balance, additions, releases, and ending balance
[Disclosure Reports]

Why Kantivo for ASC 606?

🔍

Trace Every Recognized Dollar

Drill from a journal entry back to the obligation, the allocation, the modification history, and the original contract. Your audit trail is the data model itself, not a separate workpaper to maintain.

💰

Skip the $2K/Month Add-On

NetSuite Advanced Revenue Management and Sage Intacct's Contract Revenue Module run thousands per month. Kantivo bakes the same capability into the core accounting engine.

⚙️

Fits the Real Business

Bundled deals, mid-term upsells, refund reserves, billing-vs-recognition timing — the actual mechanics of revenue at growing companies, all wired in from day one.

Revenue Recognition Built for Audit, Not Just Bookkeeping

Multi-obligation contracts, SSP-based allocation, modifications, variable consideration, invoice binding, four disclosure reports — all included with Kantivo Professional, Business, Premium, and Enterprise plans.

Start Free Trial See All Features