SaaS Revenue Recognition Guide

Build a SaaS revenue recognition guide for [Company] under ASC 606. Include: 1) ASC 606 five-step model applied to SaaS — identify the contract, identify performance obligations, determine transaction price, allocate price to obligations, recognize revenue as obligations are satisfied. Walk through each step with SaaS examples. 2) Common SaaS scenarios — subscription revenue (ratably over term), professional services (as delivered vs over subscription), usage-based revenue (as consumed), one-time setup fees (over service period), on-premise license component (point-in-time vs over time). 3) Multiple performance obligations — how to identify distinct obligations in bundled deals, standalone selling price (SSP) determination methods (adjusted market, expected cost plus margin, residual). 4) Variable consideration — usage-based pricing, tiered pricing, discounts, refund rights, penalty clauses — estimation methods and constraints. 5) Contract modifications — upsells, downgrades, renewals, early terminations — accounting treatment for each. 6) Practical expedients — portfolio approach, significant financing component, shipping and handling, contract costs. 7) Disclosure requirements — disaggregation of revenue, contract balances, remaining performance obligations, significant judgments. 8) Month-end process — revenue recognition journal entries, deferred revenue reconciliation, waterfall schedule, audit support documentation. 9) System requirements — billing system to GL mapping, automation opportunities, data requirements for compliance.