Calculate a Bundle Allocation
Calculate relative stand-alone selling price allocation for a discounted multi-obligation contract.
A customer buys software, onboarding, and support for $120k. Stand-alone selling prices are software $90k, onboarding $30k, support $30k. Total stand-alone selling price is $150k. Allocate the transaction price on a relative stand-alone selling price basis unless specific discount evidence supports a different allocation. Putting the entire $30k discount on support makes current software revenue look better, but it lacks evidence and distorts the pattern. Before Software $90k, onboarding $30k, support $0 discount plug; current revenue is front-loaded. After Software $72k, onboarding $24k, support $24k; each obligation carries its share of the bundle discount. Step 1 Total stand-alone selling price…
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