Revenue Recognition Questionnaire
Instruction: The purpose of this form is to document the revenue recognition review completed by finance. This form needs to be attached to any order whose value is greater than $X and any order received from ABC Co.
Sales Order Number:
Prepared By and Dated:
Reviewed and Dated:
Persuasive Evidence of an Arrangement: Reference Yes No N/A Answers not in shaded box require comments
1 Is this order under (insert division name)? (If yes, go to delivery)
2 Is there an existing contract? (Yes means verified by contracts department)
3 Is there a new agreement?
Is there a new license agreement? (Attach if yes)
Is there a new signed support agreement? (Attach if yes)
Is there a professional services and/or SOW agreement? (Attach if yes)
4 Is there a PO attached?
5 Do PO terms supersede contract terms?
6 Other (specify):
1 Is product available for shipment?
2 Do FOB origin terms apply?
3 Is electronic distribution required? (If yes, attach download confirmation)
4 Are there any special delivery requests? (If yes, note request)
Fixed and Determinable Fees
1 Is there a non-standard pricing schedule?
If yes, review for significant discounts or other unusual terms on the non standard pricing?
2 Is there a right to refund with no cause?
3 Are there any credits to future or past pricing been given?
4 Are there any future events or terms that would cause the price to change?
(SLA's, most favored customer clauses, etc)
If most favored customer, does price protection only apply to future purchases?
5 Are there acceptance terms?
If yes, note acceptance date or sign off terms
6 Is warranty a standard 90 days?
1 Is there a PO attached?
2 Are payment terms 30 days?
3 If payment terms are greater than 30 days, has credit approved?
4 Are payment terms greater than one year?
5 Was additional analysis needed to conclude that collection is probable?
If yes, state why: ____________________________________________
Multiple Element Arrangements
1 Are multiple elements separately stated and priced in the contract?
2 Is maintenance a renewal?
If yes, is prior maintenance attached?
If yes, is rate consistent with prior year?
3 Is support for the cumulative numbers of users purchased?
4 Is there any free maintenance given?
If yes, how many months?
If yes, is allocation attached?
Calculation of maintenance rate:
Term in months
Annual maintenance rate
Maintenance as a% of license
5 Is maintenance rate within X table?
6 Is there a professional services element? (if no, skip to #17)
7 Is the SOW attached?
8 What are payments term of SOW?
9 Is there a fixed fee or time and materials?
10 If time and materials, what is the rate charged?
11 Description of service implementation
12 What is expected completion date if known?
13 If customization, is this essential to the functionality customer is purchasing?
14 If yes to # 13, is license deferral needed? (If yes, attach documentation)
15 Is there testing rights and/or acceptance criteria?
16 Does any documentation call for significant modification/customization?
17 Are allocations or booking instructions needed? If yes, attach calculation
18 Are significant incremental discounts (to discounts on current order) offered on future purchases?