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Documentation Index

Fetch the complete documentation index at: https://docs.dualentry.com/llms.txt

Use this file to discover all available pages before exploring further.

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Change Orders, Terminations, and Renewals

Contracts rarely stay static. Customers upgrade, downgrade, cancel, or extend their arrangements. DualEntry models these events as change orders, terminations, or renewals and applies the appropriate ASC 606 treatment automatically.

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Change orders

A change order is a modification to an existing contract’s scope or price. In DualEntry, you edit an active contract to add, remove, or modify performance obligations. DualEntry then determines whether the change qualifies as a separate contract or a modification of the existing one. To create a change order:
  1. Open the active contract in the contract detail view.
  2. Select Add Change Order.
  3. Add, remove, or modify obligations as needed.
  4. Save the change order. DualEntry applies the modification treatment and updates the recognition schedule.
Each change order is recorded as a discrete event on the contract timeline. You can review all change orders from the contract detail view under Activity, where each entry shows the before-and-after state of affected obligations. This history is critical for auditors who need to trace how the contract evolved over its lifetime.

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Prospective treatment

When a modification adds distinct goods or services at their standalone selling price, DualEntry treats the addition as a new performance obligation. Revenue for the new obligation is recognized going forward from the modification date. There is no catch-up adjustment to previously recognized amounts. This applies when the new deliverable is both capable of being distinct and distinct in the context of the contract, and the pricing reflects standalone value. DualEntry evaluates these conditions based on the SSP you configured on the item record. If the addition meets both criteria, the original obligations continue on their existing schedules unchanged.

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Cumulative catch-up treatment

When a modification changes the price or scope of existing obligations - for example, extending a service period or adjusting the rate - DualEntry reallocates the updated transaction price across all obligations using the SSP-based formula. It then records a cumulative catch-up adjustment in the current period to align recognized revenue with the revised schedule. The catch-up entry appears as a single journal entry in the period the change order is applied. You can drill into the entry from the contract detail view to see the before-and-after allocation. The adjustment can be positive or negative depending on whether the modification increased or decreased the transaction price relative to the existing obligations.

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Terminations

When a contract is terminated early, DualEntry handles the remaining contract activity using the termination treatment you select.
  • Accelerated recognition - remaining revenue is recognized as of the termination date.
  • Cancel remaining schedules - open invoices and future revenue schedule lines are canceled. No additional revenue is recognized after the termination date.

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Accelerated revenue recognition

Choose accelerated recognition when the termination terms require the remaining contract revenue to be recognized at termination. DualEntry posts the remaining allocated revenue in the termination period and closes the related future revenue schedule lines. Choose cancel remaining schedules when the customer is released from the remaining obligation or future service will not be delivered. DualEntry cancels the remaining invoices and revenue schedule lines so no further billing or recognition occurs after the termination date. To terminate a contract:
  1. Open the contract and select Terminate.
  2. Confirm the termination date and review the impact summary.
  3. DualEntry updates the recognition schedule and moves the contract status to terminated.
The impact summary shows the selected treatment before you confirm, including any accelerated revenue and any invoices or revenue schedule lines that will be canceled. Review this summary carefully before completing the termination.
Terminating a contract is not reversible. If the customer later resumes the arrangement, model it as a new contract or a renewal on the original.

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Renewals

A renewal extends the contract term or adds new obligations for a subsequent period. DualEntry supports two renewal approaches, depending on your configuration and the nature of the arrangement.
  • New contract - DualEntry creates a separate contract for the renewal term. SSP allocation starts fresh, and the original contract moves to completed status. Use this when the renewal terms differ significantly from the original.
  • Existing contract renewal - DualEntry extends the existing contract by adding obligations for the renewal period or adjusting dates. Recognition for the renewal period is scheduled prospectively; no catch-up adjustment is recorded. Use this when the renewal is a continuation of the same arrangement.
You choose the approach when you process the renewal. Both options preserve the audit trail linking the renewal to the original contract. For Stripe-sourced contracts, the sync logic handles renewal events automatically based on Stripe’s subscription renewal behavior - see Stripe Revenue Sync for details.

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Attachments and documentation

Contracts support file attachments so you can store change order documentation alongside the contract record. Attach amendment letters, internal approval memos, or customer-signed modifications under the Attachments tab. These files are available for auditors reviewing the contract history. Keeping supporting documentation attached to the contract rather than in a separate system makes it easier to produce a complete audit package. DualEntry indexes attachment metadata so you can search across contracts for specific document types.

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Audit trail

Every contract modification is logged in the audit trail with before-and-after values. DualEntry records who made the change, when, and what fields were affected. You can view the full modification history from the contract detail view under Activity. The audit trail captures not only field-level changes but also the resulting allocation and schedule adjustments. This means an auditor can trace from a change order through the reallocation math to the specific journal entries it produced, all from a single contract record.

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Next steps

Last modified on May 28, 2026