How to Record Bundled MRI Sales and Maintenance
Allocation of transaction price between a high-value medical imaging device and a 3-year service contract under ASC 606.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Accounts Receivable | Asset | 1,200,000.00 | - |
| Product Revenue | Revenue | - | 1,000,000.00 |
| Deferred Service Revenue | Liability | - | 200,000.00 |
💡 Accountant's Note
The total contract price of $1.2M is allocated based on standalone selling prices: $1M for the equipment and $200k for the multi-year service obligation.
Practitioner & Systems Framework
💻 ERP Architecture
Revenue Management Cloud module with performance obligation scheduling.
⚠️ Audit Flags
Allocation methodology for standalone selling price (SSP).
📄 Required Documentation
Signed sales agreement, SSP analysis, and delivery confirmation.
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Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.
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