Amendments, Co-Terming & Upgrades
Amendments, Co-Terming & Upgrades
Contract Amendments in GAAPx manage the complete lifecycle of mid-term modifications, tier upgrades, additional seat expansions, and co-terming addenda. GAAPx automatically applies the appropriate ASC 606-10-25 modification rules (Separate Contract, Prospective, or Cumulative Catch-up) without spreadsheet rework.
:::info SCREENSHOT PLACEHOLDER: Contract Lineage & Amendment Timeline
Location in App: App > Contracts > [Contract ID] > Lineage & Amendments
Visual Description: Timeline view showing original MSA Order Form #1, Amendment #1 (Seat Add-on), and Amendment #2 (Co-termed Renewal), with delta waterfall impact.
Recommended Dimensions: 1200 x 675
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ASC 606 Contract Modification Decision Engine
When an amendment or add-on order form is ingested, GAAPx evaluates the modification criteria under ASC 606-10-25-12:
1. Separate Contract (ASC 606-10-25-12a)
- Criteria: Additional distinct goods or services added at their standalone selling price.
- Accounting Treatment: Treated as an independent contract; existing schedules remain unchanged.
2. Prospective Treatment (ASC 606-10-25-12b)
- Criteria: Additional distinct goods added at a discounted rate or bundled with remaining unperformed obligations.
- Accounting Treatment: Remaining unamortized contract value is blended with new consideration and recognized prospectively over the remaining duration.
3. Cumulative Catch-Up (ASC 606-10-25-12c)
- Criteria: Non-distinct goods (e.g., retrospective scope changes or milestone adjustments).
- Accounting Treatment: Immediate adjustment recognized in the current reporting period to update cumulative revenue recognized to date.