How does Revenue Recognition work in Tabs?

Tabs automates revenue recognition to ensure compliance, accuracy, and real-time visibility into revenue streams. By centralizing all contracted revenue data and applying ASC 606 standards, Tabs makes it easier to manage and report on revenue—whether based on fixed schedules or usage-based data.

1. Centralized Revenue Schedule

Tabs automatically generates a revenue schedule based on the terms of each contract, ensuring that revenue is recognized at the correct time. This includes:

• Fixed revenue schedules (e.g., annual payments, subscription-based models)

• Usage-based revenue (e.g., pay-per-use, consumption-based models) are built as usage data is ingested into Tabs

2. Flexible Adjustments

Revenue recognition in Tabs is adaptable. If a contract term changes, such as customer usage or amendments, Tabs allows for easy modifications to the revenue schedule to reflect the updated terms.

3. Accurate Revenue Allocation

Tabs ensures that revenue is allocated accurately based on when payments are made. This is done in compliance with ASC 606, ensuring that revenue is recognized at the right time and in the right amounts.

4. Granular Reporting

Tabs provides detailed revenue insights at the product and customer level:

• Revenue by product – Track how much revenue is generated by each product or service

• Customer-level insights – View revenue recognition tied to specific customers for deeper financial analysis