Contract with a customer
In accounting, contract with a customer means an agreement that creates enforceable rights and obligations — written, oral or implied by customary practice — accounted for under Topic 606 only once it is approved, each party's rights and the payment terms can be identified, it has commercial substance and collection is probable.
Authority: ASC 606-10-25-1, -25-2 (opens in a new tab). Sources
The lesson that teaches this
From the free founder back-office course, taught on one company's books, with exercises to work it yourself.
What it is not called
Each of these means something else. Use one here and an accountant reading the product notices.
- order
- deal
Nearby in the catalog
No component names this concept outright. These sit in the same part of the system.
Also in Revenue recognition
Defined in Lexicon. This page is generated from that document, so the two can't disagree.