---
title: Percentage of Completion
description: An over-time revenue recognition method based on the continuous progress made toward complete satisfaction of a performance obligation. It ensures rev...
sidebar_position: 38
tags: ['asc-606', 'Revenue']
---

# Percentage of Completion

## The ASC 606 Standard

An over-time revenue recognition method based on the continuous progress made toward complete satisfaction of a performance obligation. It ensures revenue closely mirrors operational execution on long-term projects.

## The Real-World Scenario

You are building a custom software platform; when the engineering team completes 40% of the coding milestones, you recognize 40% of the revenue.

## The Spreadsheet Breaking Point

Constantly updating revenue spreadsheets based on highly subjective manual emails from project managers results in massive timing errors.

## The Hidden Cost to the Bottom Line

Inaccurate progress tracking leads to massive true-up swings at the end of large projects, destroying predictable forecasting.

## How GAAPX Eliminates the Risk

Integrates directly with project tracking software to automatically translate real-time milestone completion percentages into exact revenue entries.