ASC 606 revenue recognition
Revenue is recognized when control of the goods transfers, driven by the shipment itself rather than by an invoice date somebody typed. The operational event and the accounting judgment stay tied together.
HomeAccounting
Accounting
Books that are always audit-ready.
Most ERPs bolt accounting on beside operations and reconcile the two afterwards. Corva has the operation produce its own accounting, balanced, in the same transaction — so there is nothing to reconcile after the fact.
Postings, not exports
The operation writes the entry.
There is no nightly job that reads operational tables and guesses at journal entries. The transaction that ships the goods is the transaction that records the cost of those goods and recognizes the sale.
Because the posting happens inside the operational transaction, two things follow that are otherwise very hard to get. The books cannot be behind the warehouse, and a financial figure always has an operational cause you can name.
An automated invariant enforces the rest: every posting is balanced inside the transaction that writes it. Debits equal credits before the commit is allowed to land — not after a correcting entry at period end.
- Double-entry, balanced inside the transaction
- Every posting names the operation that caused it
- No unposted backlog, no overnight catch-up
- Period controls: a closed period stops accepting postings
One shipment, two balanced postings
Debit
Cost of goods sold1,840.00
Unbilled receivable (contract asset)2,610.00
Total4,450.00
Credit
Inventory1,840.00
Revenue2,610.00
Total4,450.00
Illustrative figures. Two balanced postings — cost-out and revenue recognition — inside the one shipment transaction. Revenue is earned here, not at the invoice.
GAAP where it matters
Revenue and cost handled the way the standards ask.
FIFO and weighted-average costing
Cost layers are carried on the inventory ledger, so the cost relieved on a shipment is the cost of the goods that actually left. Choose the method that fits the business; the mechanism is the same.
Balanced double-entry, always
Every financial action produces one balanced posting inside its own transaction. An unbalanced entry is not a report to chase later — it is a transaction that cannot commit.
Reconciliation
Subledger and general ledger are one truth, seen twice.
Reconciliation stops being a monthly exercise when both sides come from the same postings. The subledgers and the general ledger are views over one set of entries.
Drill-down path
1
Trial balance lineA general-ledger account and its balance for the period.
2
PostingsThe individual balanced entries that make up that balance.
3
OperationThe named business transaction that produced each entry.
4
GoodsThe units that moved, at the cost they were carried at.
The same path runs in reverse: from a unit's history up to the figure it contributed to.
Quantities, costs and balances are derived from ledgers rather than stored as editable fields. That single decision is why the numbers reconcile by construction: there is no second place where a balance lives and can be wrong.
Inventory value agrees with the movements behind it. Receivables agree with the invoices and settlements behind them. When a figure looks wrong, the question is never “which number do we believe?” — it is “which event caused this?”, and that has an answer.
- Trial balance and financial statements from posted entries
- Accounting period close with controls on reopening
- Subledger totals tie to the general ledger by construction
- Every figure traces to the operation and the goods behind it
Coming soon
Ready for the auditor before you are asked.
If your month-end is a reconciliation project, that is the problem Corva is built to remove.
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