---
id: reports-waterfall
title: Running Revenue Waterfall & Deferred Revenue Reports
sidebar_label: Revenue Waterfall & Reports
description: Step-by-step guide to generating, customizing, and auditing ASC 606 revenue waterfall schedules and deferred revenue rollforwards in GAAPx.
keywords:
  - ASC 606 revenue waterfall report
  - Deferred revenue rollforward
  - SaaS revenue recognition report
  - Contract liability schedule
author: GAAPx Accounting Operations Team
last_updated: 2026-10-02
---

# Running Revenue Waterfall & Deferred Revenue Reports

> **Quick Summary:** GAAPx generates dynamic, audit-ready ASC 606 revenue waterfalls that reconcile Billings, Recognized Revenue, Deferred Revenue (Contract Liabilities), and Unbilled Receivables (Contract Assets). Every cell links directly to underlying customer contracts and journal entry lines for total audit transparency.

---

## What is the Revenue Waterfall?

The Revenue Waterfall is the primary financial model used by finance teams, CFOs, and auditors to visualize how multi-year contracts translate into monthly and quarterly GAAP revenue.

```mermaid
flowchart LR
    Billings["Customer Billings\n($120,000 Annual Upfront)"] --> RevRec["GAAPx Waterfall Engine"]
    RevRec --> M1["Month 1: $10,000 Rec Rev\n$110,000 Deferred Rev"]
    RevRec --> M2["Month 2: $10,000 Rec Rev\n$100,000 Deferred Rev"]
    RevRec --> MN["Month 12: $10,000 Rec Rev\n$0 Deferred Rev"]
```

---

## How to Run the Report in GAAPx

### Step 1: Open the Reporting Center
1. In the left navigation sidebar, click **Reporting > Revenue Waterfall**.
2. Select your reporting view:
   - **Entity Scope**: Single Operating Entity or Consolidated Group.
   - **Accounting Basis**: **US GAAP** or **IFRS 15**.
   - **Time Range**: Fiscal Year (e.g. `FY 2026`) or Custom Rolling Date Range (e.g. `Oct 2026 - Sep 2027`).
   - **Granularity**: `Monthly` or `Quarterly`.

### Step 2: Apply Filters & Grouping
You can segment the waterfall by:
- **Product Line / POB Type**: Platform SaaS, Professional Services, Usage Overage, Hardware.
- **Customer Segment**: Enterprise, Mid-Market, SMB.
- **Contract Status**: Active, In-Review, Historical Closed.

### Step 3: Inspect the Three Waterfall Rows

For each reporting period, GAAPx calculates:

| Metric | Accounting Definition | Formula |
| :--- | :--- | :--- |
| **New Billings** | Total invoiced amount in the period | `Total Invoices Issued` |
| **Recognized Revenue** | Earned revenue satisfying POBs | `Earned Ratable + Milestone Deliveries` |
| **Ending Deferred Revenue** | Cumulative unearned customer billings | `Beginning Balance + Billings - Recognized Revenue` |
| **Contract Assets (Unbilled)** | Revenue recognized before billing right | `Revenue Recognized - Invoiced to Date` |

---

## Cell Drilldown & Audit Lineage

Click on any dollar amount inside the matrix to open the **Lineage Inspection Drawer**:
- Lists every individual contract and performance obligation contributing to that month's total.
- Displays the exact formula applied (e.g., `30 days / 365 days * $120,000 = $9,863.01`).
- Provides a 1-click link to the signed contract PDF and the generated Journal Entry Header.

---

## Exporting for FP&A & External Auditors

1. Click the **Export** button in the upper-right corner.
2. Choose your format:
   - **Excel Model (`.xlsx`)**: Pre-formatted with working formulas, sheet tabs per entity, and summary pivot tables.
   - **CSV Subledger Dump**: Raw row-level transaction data for ingestion into Snowflake, Databricks, or PowerBI.
   - **Audit Package (`.pdf`)**: Digitally timestamped disclosure package ready for external auditors (PwC, EY, KPMG, Deloitte, or regional CPAs).