ASC 606 Contract Modification

Understanding and Solutioning

 Understanding – Contract Modification
CM Enablers Page

1) New Part Addition

2) Order Line Cancellation
3) Line Quantity change MEA Outcome
4) Discount change
• Revenue previously recognized
5) Line price change
remain as is and remaining
6) Term Modification
undelivered original contract should
be assigned a new ARR ID
Accounting Results • Additional products should be
• Termination of Original Contract added to the original ARR ID and
and Creation of New Contract. any resulting revenue adjustment is
• Cumulative Catch Up of Original made as of the modification date.
Contract • Assigned ARR ID with current ARR
• Separate contract ID Logic.
• New products or service order lines
are assigned a new ARR ID.

Decision Touch points

1) SPV with in range
2) Performance Obligation –
distinct/Non Distinct
Existing Solution for Arrangement ID (Revenue Contract)

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Existing Solution for Contract modification

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Solution Overview – ASC 606 Contract Modification

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Personalization to identify
and set the Contract
modification flag in DFF
Solution Overview – ASC 606 Contract Modification

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Introduction of child tables for XXKT_SAME_DEAL_TBL

Solution Overview –Contract Modification Control Page

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Solution Overview – MEA Changes

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Change in MEA extraction packages :

XXAT_EITF_REV_POP_DTLS_ASC_606
XXAT: EITF REV INVOICE EXTRACT FOR QUARTER ASC 606

XXAT: EITF REV POPULATE ORDER STAGING ASC 606

XXAT: EITF REV POPULATE ORDER DATA ASC 606

Change in MEA allocation packages :

XXAT_EITF_REV_ALOC_CAL_ASC_606
XXAT_EITF_REV_BASE_FO_ASC_606
XXAT_EITF_REV_RUN_ALOC_ASC_606
Rev Pro Implications

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605 Implications

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Cutover Implications

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