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About the Agent
Revenue Recognition Agent, by ZBrain, is a powerful automation solution designed to streamline and ensure compliance with revenue recognition standards. In complex business environments, accurately recognizing revenue based on delivery milestones, contract terms, and operational progress is critical. The agent seamlessly integrates data from CRM systems and operational platforms to automatically determine when and how revenue should be recorded in the general ledger. By automating processes, it ensures that revenue is recognized accurately and consistently, reducing the risk of financial misreporting.
At its core, the Revenue Recognition Agent is a smart automation system that synchronizes contractual obligations with actual delivery milestones to ensure revenue is recorded precisely when earned. By continuously monitoring fulfillment data and mapping it against contract terms, the agent automatically triggers revenue entries as specific conditions are met—such as the completion of a service, product delivery, or passage of time in subscription agreements. This approach ensures compliance with recognized accounting standards, prevents premature recognition, and aligns financial reporting with real operational performance.
Beyond simplifying the recognition process, the agent offers continuous monitoring and flexibility in handling different billing models, such as subscription-based, usage-based, or milestone-driven revenue streams. It automatically adjusts for contract amendments, service delays, and cancellations, ensuring that entries remain up to date. This dynamic functionality accelerates the period-end closing process, enhances revenue forecasting accuracy, and minimizes the risk of errors during audits. The Revenue Recognition Agent ultimately delivers measurable value to businesses by increasing financial accuracy, improving operational efficiency, and enhancing compliance with revenue recognition standards.
Accuracy
TBD
Speed
TBD
Input Data Set
Sample of data set required for Revenue Recognition Agent:
1.1. Contractual Data (from CRM/Contract Management Systems)
| Field Name | Data Type | Example Value |
|---|---|---|
ContractID |
String (UUID) | CONT-789012-XYZ |
CustomerID |
String | 1000521 |
CustomerName |
String | "GlobalTech Inc." |
SalesOrderNumber |
String | SO-2024-05-00123 |
ContractEffectiveDate |
Date | 2024-03-15 |
ContractEndDate |
Date | 2027-03-14 |
TotalContractValue |
Decimal | 1,500,000.00 |
Currency |
String (ISO 4217) | USD |
BillingModel |
Enum | Subscription |
PaymentTerms |
String | Net 30 |
RevenueRecognitionStandard |
Enum | ASC 606 |
PerformanceObligations |
Array of Objects | ( PerformanceObligation ) |
ContractAmendments |
Array of Objects | [ { "AmendmentID": "AMEND-001", "EffectiveDate": "2024-06-01", "ImpactOnValue": "50000.00" } ] |
PerformanceObligation :
| Field Name | Data Type | Example Value |
|---|---|---|
ObligationID |
String | PO-001 |
Description |
String | "Annual License for Quantum Analytics Platform" |
AllocatedPrice |
Decimal | 500,000.00 |
RevenueType |
Enum | Subscription |
RecognitionMethod |
Enum | Over Time (Straight-Line) |
TriggerEventType |
Enum | TimePassage |
ExpectedCompletionDate |
Date (Optional) | 2024-04-30 |
DurationMonths |
Integer (Optional) | 12 |
AssociatedSKUs |
Array of Strings | ["SVC-CLS-ENT-001", "LIC-QAP-PREM-001"] |
1.2. Operational Data (from ERP/Project Management/Logistics Systems)
| Field Name | Data Type | Example Value |
|---|---|---|
ContractID |
String (UUID) | CONT-789012-XYZ |
ObligationID |
String | PO-001 |
EventType |
Enum | MilestoneAchieved |
EventDate |
Date/Timestamp | 2024-04-15T10:30:00Z |
EventDetails |
Object | {"MilestoneName": "Phase 1 Completion", "ProgressPercentage": "25.00"} |
QuantityDelivered |
Decimal (Optional) | 50 |
UsageData |
Object (Optional) | {"GBsUsed": "1024", "ComputeHours": "500"} |
CancellationReason |
String (Optional) | "Customer Project Delayed" |
SystemSource |
String | QuantumERP |
Deliverable Example
Sample output delivered by the Revenue Recognition Agent:
1.1. General Ledger (GL) Entries (for ERP Integration)
| Field Name | Data Type | Example Value |
|---|---|---|
TransactionID |
String (UUID) | GL-REC-20240131-0001 |
JournalEntryDate |
Date | 2024-01-31 |
ContractID |
String | CONT-789012-XYZ |
ObligationID |
String (Optional) | PO-QAP-ANNUAL |
Entries |
Array of Objects | [ {"GLAccount": "210000", "AccountName": "Deferred Revenue", "Type": "Debit", "Amount": "10000.00", "Currency": "USD"}, {"GLAccount": "400100", "AccountName": "Subscription Revenue", "Type": "Credit", "Amount": "10000.00", "Currency": "USD"} ] |
RecognitionMethodApplied |
Enum | Over Time (Straight-Line) |
TriggeringEvent |
Object | {"EventType": "TimePassage", "EventDate": "2024-01-31", "Period": "Jan 2024"} |
AuditTrailID |
String | AUDIT-REC-20240131-0001 |
1.3. Compliance & Audit Log
| Field Name | Data Type | Example Value |
|---|---|---|
AuditLogID |
String (UUID) | AUDIT-REC-20240131-0001 |
Timestamp |
Timestamp | 2024-01-31T03:00:00Z |
ContractID |
String | CONT-789012-XYZ |
ObligationID |
String (Optional) | PO-QAP-ANNUAL |
ActionType |
Enum | RevenueRecognized |
Details |
Object | {"RecognizedAmount": "10000.00", "TriggeredBy": "TimePassage", "PeriodCovered": "Jan 2024", "RuleID": "RULE-SUBSCRIPTION-STRAIGHTLINE"} |
ReferencedInput |
Array of Objects | [ {"SourceSystem": "ApexCRM", "RecordID": "CONT-789012-XYZ"}, {"SourceSystem": "QuantumERP", "RecordID": "2024-01-31_TimePassage"} ] |
ValidationResult |
Enum | Success |
UserOrigin |
String | SYSTEM |
1.4. Exception & Alert Reports
| Field Name | Data Type | Example Value |
|---|---|---|
ReportID |
String (UUID) | EXCEP-20240510-0005 |
Timestamp |
Timestamp | 2024-05-10T09:15:00Z |
ContractID |
String (Optional) | CONT-112233-ABC |
ObligationID |
String (Optional) | PO-003 |
ExceptionType |
Enum | MissingOperationalData |
Description |
String | "No delivery confirmation received for 'Premium Software License' (PO-003) for contract CONT-112233-ABC by expected completion date 2024-05-01." |
Severity |
Enum | High |
RecommendedAction |
String | "Contact Logistics Department for delivery status update." |
Status |
Enum | Open |
AssignedTo |
String (Optional) | FinanceOps Team |
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