---
title: Agent (Net Revenue)
description: An entity that arranges for another party to provide goods or services, requiring revenue to be recorded strictly on a net basis. The entity only reco...
sidebar_position: 24
tags: ['asc-606', 'Revenue']
---

# Agent (Net Revenue)

## The ASC 606 Standard

An entity that arranges for another party to provide goods or services, requiring revenue to be recorded strictly on a net basis. The entity only recognizes the commission or fee earned for facilitating the sale.

## The Real-World Scenario

You operate a ticketing website; a customer pays $100 for a concert, you pass $90 to the venue and keep $10 as your fee.

## The Spreadsheet Breaking Point

Manually stripping out pass-through costs from thousands of transactions to find the net margin is tedious and highly error-prone.

## The Hidden Cost to the Bottom Line

Failing to properly classify as an Agent causes massive artificial inflation of revenue, severely damaging executive credibility during audits.

## How GAAPX Eliminates the Risk

Automatically identifies pass-through arrangements and completely strips out third-party costs, recording only the pure net margin as revenue.