What Vanward calculates
Contract revenue, deferred revenue and unbilled contract assets.
The method
- Allocate a bundle total in proportion to each line's standalone selling price. Distribute remaining cents by largest remainder so all lines add back to the bundle total.
- For ratable obligations, allocate the contract amount across service days or service months using the selected method. Calculate cumulative earned cents and subtract the prior cumulative amount for the period. The final period takes the remaining cents.
- Apply dated credits to the remaining service. For non-ratable obligations, use the earned amounts and reasons entered by the company. Advance billings less earned revenue form deferred revenue; earned amounts before arrears billing form unbilled revenue.
What the company decides
Performance obligations, transaction prices, standalone selling prices, service dates, billing timing, recognition method and earned amounts for non-ratable work. These inputs and judgments are outside the guarantee.
Where it shows in Vanward
Deferred revenue schedules and the revenue recognition policy memo in Close.
Method change log
- 2026-11-09 · 1.0 published