Transaction price
In accounting, transaction price means the consideration an entity expects to be entitled to for the contract, including estimated variable consideration and excluding amounts collected for third parties such as sales tax.
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Authority
This definition follows ASC 606-10-32-2.
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.
Transaction price, in use
Quoted from the document that use the word — what it does to an interface, in the spec's own sentence.
Allocation across obligations uses largest-remainder so the allocated amounts sum exactly to the transaction price.
Schedules, accruals & roll-forwards — 4. Deferred revenue (ASC 606 / IFRS 15)
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.
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.
- contract value
- TCV
Nearby in the catalog
No component names this concept outright. These are the ones in its part of the system, which is a weaker claim — but a component nothing links to is a component nobody finds.
6Statements
Family specTerms this one depends on
Also in Revenue recognition
Work with this concept
The calculators that compute it and the ledger payloads that carry it. A definition is where a reader starts; these are where they go next.
Defined in Lexicon. This page is generated from that document, so the two cannot disagree.