explain
State the governed US-GAAP treatment FOR A PAYMENT TYPE — a rebate, incentive, chargeback, or trade-spend payment — under ASC 606 (customer rebate / consideration payable to a customer / variable consideration), ASC 705-20 (vendor rebate), or ASC 340-40 (sales commission). It CLASSIFIES the payment and returns the governed treatment, the exact ASC citation, and the rule applied — deterministic and grounded, it will not guess and asks which payment type applies when unclear. It is NOT a free-form accounting Q&A or advisory debate: it does not argue a position, weigh a contrary opinion, or answer open questions beyond the payment-type classification (the scenario text is context only). For anything past the treatment of a payment type, run the engagement (compose/ingest the agreement, then compute).
Input Schema
| Name | Required | Description | Default |
|---|---|---|---|
| payment | No | The nature of the payment. customer_rebate = you pay/credit your customer (sell side); spa_or_billback = a special pricing agreement / billback credit to the customer; chargeback = a channel chargeback / price protection; vendor_rebate = a vendor pays/credits you (buy side); internal_commission = you pay your own salesperson. Omit if unknown and the tool will return the options to choose from. | |
| scenario | No | Optional free-text description of the user's scenario, for context. | |
| fair_value_cap_usd | No | Required only when buys_distinct_good_or_service is true: the fair value of that distinct good/service. The payment is a purchase only up to fair value; any excess reverts to the default treatment. | |
| buys_distinct_good_or_service | No | True if the payment is in exchange for a distinct good or service the counterparty actually transfers (e.g. advertising, data, slotting with proof-of-performance), as opposed to a plain price concession. This can reclassify the treatment (ASC 606-10-32-26 / 705-20-25-2). |