Campfire manages contract changes by detecting updates to agreements and recalculating revenue recognition schedules automatically. When contracts are renewed, expanded, reduced, or ended early, the system assesses how the change should be treated under accounting standards. It reallocates transaction prices across remaining obligations and applies any required adjustments to keep reporting accurate. This removes the need for manual recalculations and helps ensure revenue reflects the current contract terms at all times.
Campfire evaluates each modification to determine the correct accounting treatment. It assesses whether added goods or services are distinct and whether pricing aligns with standalone selling prices. Based on this, the system decides whether to treat the change as a separate contract or as part of the original agreement. For forward-looking changes, new revenue schedules are created from the effective date. Where required, cumulative catch-up adjustments are calculated to align previously recognised revenue with the updated contract structure.
Campfire keeps a complete record of every contract modification, linking each version back to the original agreement. It tracks key details such as effective dates, pricing changes, and the impact on revenue schedules. This creates a clear audit trail that supports compliance with standards such as ASC 606 and IFRS 15. Auditors and finance teams can review how each change was assessed and applied, ensuring transparency and consistency across reporting periods.
Why Campfire Stands Out
