---
title: Over-Time Recognition
description: Revenue recognized continuously as the entity satisfies a performance obligation over a period of time. This is the standard method for subscriptions,...
sidebar_position: 18
tags: ['asc-606', 'Revenue']
---

# Over-Time Recognition

## The ASC 606 Standard

Revenue recognized continuously as the entity satisfies a performance obligation over a period of time. This is the standard method for subscriptions, SaaS, and ongoing service contracts.

## The Real-World Scenario

You provide a cloud hosting service to a client for 12 months, earning an equal fraction of the contract value every single day they have access.

## The Spreadsheet Breaking Point

Building manual, daily-amortization formulas that account for leap years, mid-month starts, and early terminations breaks spreadsheets completely.

## The Hidden Cost to the Bottom Line

Imprecise over-time amortization leads to leaky revenue reporting, eroding the predictable SaaS metrics that drive high valuations.

## How GAAPX Eliminates the Risk

Generates flawless, automated amortization schedules down to the exact day, running invisibly in the background.