Revenue Recognition Compliance (ASC 606) | Dayos | AI for Business

CHALLENGE

Complex contracts with multiple performance obligations, variable consideration, and milestone billing require extensive manual analysis and calculation. Manual processes increase the risk of revenue recognition errors and delay financial close cycles.

Complex Contracts
Many contain multiple performance obligations that require careful manual identification and allocation.
Policy Inconsistency
A significant share of revenue restatements arises from timing judgments due to inconsistent policy application.
Extended Close Cycles
Close processes often stretch by several days as teams review contracts individually.

SOLUTION

Hero automates the end-to-end revenue recognition process by parsing contracts, identifying performance obligations, and applying ASC 606 policies consistently. It integrates with Dayos to calculate standalone selling prices, generate recognition schedules, and automate journal entries.

Contract Parsing
Extracts key terms and obligations using NLP.
Automated Scheduling
Calculates and generates monthly revenue recognition schedules.
Variable Consideration Handling
Adjusts revenue for milestones, bonuses, and rebates.
Integrated Journals
Posts automated recognition and deferral entries to the GL.

RESULT

Hero ensures full compliance with ASC 606 by standardizing complex contract evaluations and automating journal entries. Organizations gain faster, more accurate revenue recognition and a smoother close process.

Ensures ASC 606 compliance
Reduces revenue restatement risk
Speeds month-end significantly

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