Separate billings, revenue, cash and deferred revenue for one contract

About this exercise

You're explaining one annual contract to a new manager at Mar 31, 2026. Write a prompt for plain text with lines starting "Billings:", "Revenue:", "Cash collected:", "Deferred revenue:" and "Receivable:", each with the math. Finance spreads subscription revenue evenly over the term. Use only the contract facts. Under 70 words. No bullets or numbering.

Common mistakes when you ask AI for this

• Calling billings revenue. The AI says $120,000 was earned this quarter. Try: Add: "Revenue = annual amount / 12 x months elapsed."
• Wrong deferred amount. The AI forgets to subtract recognized revenue. Try: Say: "Deferred revenue = billings minus revenue recognized."
• Showing a receivable. The AI leaves $120,000 receivable because it's an annual invoice. Try: Add: "Receivable = billings minus cash collected."
• Markdown extras. The AI adds bold labels, headings and a closing note. Try: Say: "Plain text, no bold. Output only the lines asked for."
• Trusting the AI to count words. AI is bad at counting and runs past word limits. Try: Ask for fewer words than the real cap and keep each line short.

What a strong prompt includes

• Names the five lines
• Gives the revenue formula
• Gives the deferred formula
• Uses contract facts only
• Caps length

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