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Amendment A-002 · 3 prior versions

Cadel reads every amendment.

AMENDMENT A-002

14/18

ABC Corp · Scope & pricing modification

Effective Jun 1, 2025 · Mid-term · Affects PO-1, PO-3

The Cadel workflow

1

Detect amendment

Scope, price, term change

2

Decide treatment

ASC 606-10-25-10 to 13

3

Reallocate remainder

SSP-weighted, per obligation

4

Posted to GL

Catch-up + new schedule

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Modification treatment, decided.

🔒 app.cadel.ai / contracts

Contracts

Rev Schedule

Journal Entries

Amendment	Treatment	Trigger	Impact
A-001 · SaaS true-up	Prospective	Distinct, at SSP	+$120,000
A-002 · Scope expansion	Termination & new	Distinct, not at SSP	$55,000 reallocated
A-003 · Service revision	Cumulative catch-up	Not distinct	+$12,000 catch-up
A-004 · Rate uplift	Prospective	Latest rate wins	$100 → $150 /hr
Email · CFO directive	Override	High-confidence	$5,000 in Jan
Auto-renewal · A-002	Extension	12-month cycle	+$60,000
Term reduction refund	Variable	Refund liability	-$18,000
All modifications reconciled	3 prospective · 1 termination & new · 1 catch-up · 1 override		$234,000 net

ASC 606-10-25, applied.

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Remaining months, reallocated.

🔒 app.cadel.ai / revenue-schedule

Contracts

Rev Schedule

Journal Entries

All obligations

Pre-amendment

Post-amendment

Obligation	Pattern	Jan	Feb	Mar	Apr	May	Jun	Total
PO-1 Managed Services	ratable	15,000	15,000	15,000	11,000	11,000	11,000	78,000
PO-2 Implementation	milestone	60,000	40,000	20,000	—	—	—	120,000
PO-3 Expanded Scope	new PO	—	—	—	9,167	9,167	9,167	55,000
PO-4 Premium Support	ratable	6,000	6,000	6,000	6,000	6,000	6,000	36,000
PO-5 Sandbox	ratable	1,000	1,000	1,000	1,000	1,000	1,000	6,000
CFO email override	override	5,000	—	—	—	—	—	5,000
A-003 catch-up	cumulative	12,000	—	—	—	—	—	12,000
Total revenue		99,000	62,000	42,000	27,167	27,167	27,167	312,000

ASC 606-10-25-13 · Remainder reallocated · GL-ready

Every dollar, in the right month.

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Unrecognized remainder, resolved.

🔒 app.cadel.ai / variable-consideration

Contracts

Rev Schedule

Modifications

Journal Entries

PO-1 modified · PO-3 created · $55,000 remainder reallocated

Treatment ASC 606-10-25-13(a)

Termination & new

Original contract value (PO-1)

$100,000

Recognized through May 31

$45,000

Unrecognized remainder as of mod date

$100,000 → $55,000

Combined pool + new consideration

$55,000 + $55,000 = $110,000 ✓

Reallocated to PO-1 SSP-weighted

$55,000

Reallocated to PO-3 new obligation

Posted: $55,000

Amendment detected

Remainder computed

Reallocated by SSP

Posted to GL

cadel.ai

Reallocated revenue, one entry.

🔒 app.cadel.ai / journal-entries

Contracts

Rev Schedule

Journal Entries

Account	Description	Debit	Credit
Deferred Revenue	PO-1 remainder reallocation	55,000	—
Service Revenue: PO-1	PO-1 Jun recognition (post-mod)	—	11,000
Deferred Revenue: PO-3	PO-3 new obligation balance	—	44,000
Contract Asset	PO-3 expanded scope · Jun	9,167	—
Service Revenue: PO-3	PO-3 Jun first recognition	—	9,167
Cumulative Catch-up	A-003 prior-period adjustment	12,000	12,000
Total	Termination & new + catch-up · Balanced · GL-ready	76,167	76,167

Posted to GL.

From amendment to General Ledger, automated.

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From amendment to GL

Manual remainder math

→

Auto reallocation

Modifications,
automatically reconciled.

Termination & new · Catch-up · Override · Rate change

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Revenue recognition,
made simple and automated.

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