Revenue recognition
In accounting, revenue recognition means deciding when, and how much, revenue is recorded — under US GAAP, when (or as) control of a promised good or service transfers to the customer, at the consideration the entity expects to be entitled to.
- Layer
- Lexicon
- Defined in
- Lexicon
- Components
- 1
Authority
This definition follows ASC 606-10-05-3.
Every citation in this system, with the text we read and the date we checked it, is in US GAAP and where these rules come from.
Revenue recognition, in use
Quoted from the 3 documents that use the word — what it does to an interface, in the spec's own sentence.
Both call themselves "The AI-Native ERP" and advertise multi-entity consolidation and revenue recognition (campfire.ai, rillet.com, checked 2026-10-18).
Shows the revenue recognition preview per line before posting — whether each line credits revenue or deferred revenue, and on what schedule.
Entries a schedule produces automatically each period: amortization, depreciation, revenue recognition, straight-line lease expense.
Schedules, accruals & roll-forwards — 9. Recurring and schedule-generated entries
For founders
The same idea written for a founder: what it costs a startup that ignores it, and what to do in a real month.
- US GAAP for early-stage startups, in plain EnglishAccrual accounting, revenue recognition (ASC 606), leases (ASC 842), stock compensation and capitalized software: what each means for a small company.
- What to put on an invoice: a field-by-field guideThe fields a B2B invoice needs to get paid on time: legal names, a numbering sequence, dates, terms, tax lines, PO and remit-to, and how to fix one.
What it is not called
Each of these is a real word for a different thing. Using it here is what makes a product read as though it was built by someone who has not done the work.
- billing
- invoicing
- booking revenue when cash arrives
Components that render this
The concept is not documentation-only. These are the components that name it in their specification, grouped and stated exactly as the catalog states them.
10Receivables (AR)
Family specComponents that render the terms it depends on
Little in the catalog names this concept outright, but its definition is built out of others that are named. These render revenue.
Terms this one depends on
- RevenueInflows or other enhancements of assets, or settlements of liabilities, from delivering or producing goods, rendering services or carrying out other activities — recognized when control transfers, not when cash arrives
- US GAAPGenerally accepted accounting principles in the United States — for nongovernmental entities, the FASB Accounting Standards Codification; for SEC registrants, also the SEC's rules and interpretive releases
Also in Revenue recognition
Defined in Lexicon. This page is generated from that document, so the two cannot disagree.