VARIABLE CONSIDERATION FORECAST · ANVIL CORP · FY25 REASSESSED Q4 $1.4M $1.2M $1.0M $0.8M $0.6M $0.4M Q1 Q2 Q3 Q4 EST FY-END CAP $1.1M $1.0M $1.2M ▲ $0.95M ▼ $0.85M $0.82M CATCH-UP ASC 606-10-32-11 · CONSTRAINT APPLIED 3 REASSESSMENTS · RESOLVED reassess Q3 ✓ ✓ ✓
How much will they pay?
Best guess?
Estimates
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Constrained
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Anvil Corp · 12-month usage-based contract
Cadel reads every usage clause.
CONTRACT VC-2025-141
14/18
Anvil Corp · API consumption + cap
$2/call · $1.1M cap · variable consideration · quarterly reassessment
The Cadel workflow
1
Parse usage terms
Rate, cap, ceiling, floor
2
Estimate consideration
Expected value · most likely
3
Apply constraint
ASC 606-10-32-11 ceiling
4
Posted to GL
Reassess each quarter
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Estimates and constraints, applied.
🔒 app.cadel.ai / contracts
Contracts
Rev Schedule
Journal Entries
Anvil Corp · 7 variable elements · ASC 606-10-32-5 to 13
Approve all →
Variable elementMethodConstraint testExpected value
API usage Q1Expected valueWithin cap$220,000
API usage Q2 peakMost likelyCap binding$310K → $275K
Volume discount tierProbability-weightedHigh uncertainty-$45,000
Performance bonusMost likelyReasonable certainty$25,000
Service credit (SLA)Expected value99.5% uptime threshold-$8,000
Q3 reassessmentReassessedActuals tracking lower$950K → $850K
FY catch-up cumulativeCumulativePrior-period adj-$100,000
Constrained transaction priceExpected $1.2M · Constrained to $850K · ASC 606-10-32-11 applied$850,000
Every estimate, constrained.
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Revenue, constrained correctly.
🔒 app.cadel.ai / revenue-schedule
Contracts
Rev Schedule
Journal Entries
Constrained recognition schedule · Anvil Corp · FY25
Post to GL →
All obligations
Pre-amendment
Post-amendment
ObligationPatternJanFebMarAprMayJunTotal
Base subscriptionratable22,00022,00022,00022,00022,00022,000132,000
API usage (est)expected73,00073,00073,00073,00073,00073,000438,000
Constraint capcap-12,000-12,000-12,000-12,000-12,000-12,000-72,000
Performance bonusmilestone—————25,00025,000
Service creditsSLA-trigger—-2,000—-2,000—-2,000-6,000
Volume discountprob-weighted-7,500-7,500-7,500-7,500-7,500-7,500-45,000
Q3 reassessmentcum-catch-up——-25,000———-25,000
Constrained total75,50073,50050,50073,50075,50098,500447,000
ASC 606-10-25-13 · Remainder reallocated · GL-ready
Every dollar, within the cap.
cadel.ai
Constraint reassessment, handled.
🔒 app.cadel.ai / variable-consideration
Contracts
Rev Schedule
Modifications
Journal Entries
Amendment A-002 · Termination & new · effective Jun 1
Reallocate
Q3 reassessment · estimate revised down · $25,000 cumulative catch-up
Variable element ASC 606-10-32-8
API usage · Anvil Corp
Initial estimate (Q1)
$1,000,000
Constraint test (cap = $1.1M)
Within ceiling ✓
Q2 actuals tracked
$1.2M est → $1.1M cap
Q3 reassessment ASC 606-10-32-14
Actuals soft · revise down to $850K  ✓
Revised estimate expected value
$850,000
Cumulative catch-up prior-period
Posted: -$25,000
Estimated
Constrained
Reassessed
Posted to GL
cadel.ai
Cumulative catch-up, posted.
🔒 app.cadel.ai / journal-entries
Contracts
Rev Schedule
Journal Entries
Journal Entry: Q3 constraint reassessment · Anvil Corp
Post to Your GL →
AccountDescriptionDebitCredit
Contract Asset reversalQ1-Q2 over-recognition (constraint)25,000—
Usage RevenueCumulative catch-up (decrease)—25,000
Usage RevenueQ3 base recognition (constrained)—73,000
Contract AssetUnbilled · Q3 recognition73,000—
Refund liabilityVolume discount accrual7,500—
Service credits liabilitySLA contingency · ASC 606-10-32-25—7,500
TotalConstraint reassessment + cumulative catch-up · Balanced · GL-ready105,500105,500
Posted to GL.
From estimates to General Ledger, automated.
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From estimate to revenue
Static estimates
→
Live reassessment
Variable consideration,
handled.
Constraint · Reassessment · Catch-up · ASC 606-10-32
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Revenue recognition,
made simple and automated.
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