Skip to Content

Revenue recognition guide for manufacturing and distribution

August 10, 2018 White Paper 4 minute read
Authors:
David Kristick
The implementation date for the new revenue recognition standard is fast-approaching. Use our revenue recognition guide for manufacturers and distributors to help you prepare.

Image of a man sitting on a box in a warehouse, reading from a book.The implementation date for the new revenue recognition standard — 2019 for all other private organizations — is fast-approaching. The amount of work involved to switch to the new manufacturing revenue recognition framework can take years, depending on your business, so planning is critical.

The new standard is a framework that applies to all contracts with customers. With so much variation in manufacturing and distribution contracts, each contract will need to be analyzed individually or by portfolio of similar contracts.

What's inside

We've compiled a list of key manufacturing revenue recognition considerations for manufacturers and distributors, including:

  • Combining contracts and contract modifications.
  • Separate performance obligations.
  • Variable pricing.
  • Customer supplied material.
  • Point in time vs. over time revenue recognition.
  • Tax and balance sheet impacts.

Related Thinking

Group of industry leaders attending Plante Moran's Nonprofit Summit.
March 26, 2024

2024 Nonprofit Summit

Webinar 4 hour watch
Business professionals in modern conference room discussing contingent consideration.
February 2, 2024

How do earnouts, including contingent consideration, affect the financial results of an acquired business?

Article 5 min read
View of American flag next to government building.
January 26, 2024

Accounting and regulatory update for public and private companies

Article 15 min read