Structure, Metadata & Clause Extraction
Structure, Metadata & Clause Extraction
Structure & Clause Extraction in GAAPx transforms unstructured legal contract language into normalized, machine-readable accounting metadata required for ASC 606 Step 1 (Contract Identification) and Step 3 (Transaction Price Determination).
:::info SCREENSHOT PLACEHOLDER: Clause Detection Inspector
Location in App: App > Contracts > [Contract ID] > Legal Clauses
Visual Description: Highlighted contract clauses with categorized tags for Termination for Convenience, Penalty Claws, CPI Adjustment Caps, and Payment Milestones.
Recommended Dimensions: 1200 x 675
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Critical Non-Standard Clauses Detected
1. Termination for Convenience (TFC)
- Accounting Impact: Under ASC 606-10-25-3, contracts with unilateral termination rights without substantive penalties must limit the enforceable contract term to the notice period.
- GAAPx Action: Automatically constrains the revenue amortization schedule to the enforceable period and triggers warning flags in Deal Desk reviews.
2. Variable Consideration & SLA Penalties
- Accounting Impact: Liquidated damages or SLA credits represent variable consideration subject to the constraint under ASC 606-10-32-11.
- GAAPx Action: Evaluates historical refund probability and sets automated accrual reserves.
3. CPI & Inflation Escalation Caps
- Accounting Impact: Annual price increases tied to Consumer Price Index (CPI) or fixed percentages require dynamic schedule recalculation at anniversary dates.
- GAAPx Action: Schedules automated price uplift events on future billing cycles.