How do I install the Revenue Recognition skill?

Run npx skillmds add majiayu000/revenue-recognition in your terminal (requires Node.js), paste this page's agent-chat prompt into Claude, Cursor, or any MCP-connected agent, or download the SKILL.md file and copy it into your agent's skills directory.

Is Revenue Recognition safe to use?

This skill has not completed SkillMD's automated safety review yet. Capability flags: docs only. SkillMD never runs a skill's scripts for you; review the SKILL.md before installing.

Which AI agents work with Revenue Recognition?

This skill is tagged as working with Claude Code, Claude.ai, OpenAI Codex. SKILL.md is an open format, so most agents that read a skills directory can load it too.

Is Revenue Recognition free to use?

Yes. Installing skills from SkillMD is free, and the skill stays under its author's original license.

Who published Revenue Recognition?

majiayu000 (@majiayu000) published this skill. Their other Agent Skills are listed on their SkillMD profile.

Revenue Recognition by majiayu000 — Agent Skill

Name: Revenue Recognition
Rating: 4.2 (5 reviews)
Author: majiayu000

Revenue Recognition

Determines when and how revenue is recognized — performance obligations, contract terms that change the answer, and the deal structures that create accounting problems. Use this to work out how a contract should be recognized, review a non-standard deal before it is signed, understand deferred revenue, or spot terms that would delay or reverse recognition.

majiayu000 2565130 2 files · 5.1 KB Updated Sep 9, 2026 567 repo stars

File contents

Revenue recognition

Cash received is not revenue earned. The gap between them is where deals get restructured after signature and where quarters get restated.

This structures the question and tells you what to ask. Revenue recognition is a technical accounting matter under standards such as ASC 606 and IFRS 15 — conclusions on a material or unusual contract need your auditors or a qualified accountant, not a checklist.

The shape of the question

Recognition follows the transfer of control to the customer, worked through in five steps: identify the contract, identify the distinct performance obligations, determine the transaction price, allocate it across the obligations, then recognize as each is satisfied.

Most disputes happen at step two and step four. What sales sold as one thing is frequently several obligations for accounting purposes — software plus implementation plus support — and the price has to be allocated across them on standalone selling price, not on how the quote was written.

Terms that change the answer

These belong in a pre-signature review, because after signature the only remedy is an amendment the customer has no reason to agree to:

Acceptance clauses — a customer right to reject can defer recognition until acceptance.
Termination for convenience — a short-notice exit can shorten the contract term for accounting purposes, however long the stated term is.
Contingent or milestone fees — variable consideration, constrained until it is probable there will be no significant reversal.
Material rights — a renewal or upgrade priced below standalone value can itself be a performance obligation carved out of today's price.
Extended payment terms — payment far from delivery can introduce a financing component.
Side letters. Any promise made outside the contract is still part of the contract. They are the single most common cause of restatement, and by construction finance does not know they exist.

Working with sales

Recognition treatment is a deal input, not a post-signature discovery. A concession that costs nothing commercially can move revenue across a period boundary, and by the time finance sees the signed paper the trade has already been made.

Give revenue:chief-revenue-officer and revenue:pricing-and-packaging a small set of standard structures that recognize cleanly, and route anything outside them through review before signature — alongside legal-risk:contract-review, which owns the legal exposure the same clauses create.

Deferred revenue is an obligation

The deferred balance is work owed, not money banked. Track it by cohort and obligation so you can answer what it is composed of and when it releases. A balance nobody can decompose is one that surprises you.

Never

Recognize on invoice date or cash receipt as a shortcut.
Allocate price across obligations the way the quote happened to be laid out.
Let a side letter exist.
Conclude a material or novel contract's treatment without your auditors.

---name: revenue-recognitiondescription: Determines when and how revenue is recognized — performance obligations, contract terms that change the answer, and the deal structures that create accounting problems. Use this to work out how a contract should be recognized, review a non-standard deal before it is signed, understand deferred revenue, or spot terms that would delay or reverse recognition.--- # Revenue recognition Cash received is not revenue earned. The gap between them is where deals get restructured after signature and where quarters get restated. **This structures the question and tells you what to ask. Revenue recognition is a technical accounting matter under standards such as ASC 606 and IFRS 15 — conclusions on a material or unusual contract need your auditors or a qualified accountant, not a checklist.** ## The shape of the question Recognition follows the transfer of control to the customer, worked through in five steps: identify the contract, identify the distinct performance obligations, determine the transaction price, allocate it across the obligations, then recognize as each is satisfied. Most disputes happen at step two and step four. What sales sold as one thing is frequently several obligations for accounting purposes — software plus implementation plus support — and the price has to be allocated across them on standalone selling price, not on how the quote was written. ## Terms that change the answer These belong in a pre-signature review, because after signature the only remedy is an amendment the customer has no reason to agree to: - **Acceptance clauses** — a customer right to reject can defer recognition until acceptance. - **Termination for convenience** — a short-notice exit can shorten the contract term for accounting purposes, however long the stated term is. - **Contingent or milestone fees** — variable consideration, constrained until it is probable there will be no significant reversal. - **Material rights** — a renewal or upgrade priced below standalone value can itself be a performance obligation carved out of today's price. - **Extended payment terms** — payment far from delivery can introduce a financing component. - **Side letters.** Any promise made outside the contract is still part of the contract. They are the single most common cause of restatement, and by construction finance does not know they exist. ## Working with sales Recognition treatment is a deal input, not a post-signature discovery. A concession that costs nothing commercially can move revenue across a period boundary, and by the time finance sees the signed paper the trade has already been made. Give `revenue:chief-revenue-officer` and `revenue:pricing-and-packaging` a small set of standard structures that recognize cleanly, and route anything outside them through review before signature — alongside `legal-risk:contract-review`, which owns the legal exposure the same clauses create. ## Deferred revenue is an obligation The deferred balance is work owed, not money banked. Track it by cohort and obligation so you can answer what it is composed of and when it releases. A balance nobody can decompose is one that surprises you. ## Never - Recognize on invoice date or cash receipt as a shortcut. - Allocate price across obligations the way the quote happened to be laid out. - Let a side letter exist. - Conclude a material or novel contract's treatment without your auditors.

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