# Contract with a customer

> Contract with a customer — 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.

Source: https://lopifi.com/glossary/contract-with-a-customer
Part of: Lopifi — US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

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**What is 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.

## Words this system refuses for it

- order
- deal

- **Category:** Revenue recognition
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)
- **Related:** payment-terms