Scope sheet
finbryn.com
Close & reporting
Commission accounting under ASC 340-40
Finbryn prepares commission accounting under ASC 340-40 for SaaS and other contract-based companies that pay sales commissions: a contract-by-contract capitalization and amortization schedule, monthly journal entries and an impairment check, posted in QuickBooks Online, NetSuite or Sage Intacct and tied to the ledger every close.
What is included
- Capitalization memo draft showing which commission plans create incremental costs of obtaining a contract
- Amortization schedule by contract with renewal and term assumptions written down
- Monthly journal entries for capitalized commissions and amortization
- True-ups for clawbacks, cancellations and plan changes
- Impairment check workpaper each reporting period
- Rollforward and disclosure support for your auditor or reviewing accountant
The process
- 1.
Plan and contract intake
We collect commission plans, commission statements and a contract list with terms, start dates and renewal terms.
- 2.
Classification
Each commission is classified as incremental to obtaining a contract or not, and the one-year practical expedient is documented if elected.
- 3.
Period selection
An amortization period is set per contract, with renewals considered only where the policy memo supports it.
- 4.
Schedule build
One row per commissioned contract, with amount, start date, life, monthly amortization and balance.
- 5.
Monthly posting
New commissions are added, amortization is booked and the balance is reconciled to the general ledger at each close.
- 6.
True-ups and impairment
Clawbacks, cancellations and plan changes are applied to the specific row, and an impairment check is documented each period.
Software
QuickBooks Online, NetSuite, Sage Intacct, Salesforce, HubSpot, Excel, Google Sheets
Pricing
Commission accounting is included in monthly reporting scope usually, because the effort follows the number of commissioned contracts added each month. Current tiers are published at /us/pricing; larger books and multi-year catch-ups are scoped separately.
Finbryn is a brand of Northlane Solutions Inc., a Delaware corporation.
Reviewed October 2026