Separate the Bundle Before Booking
Identify distinct performance obligations in a bundled customer arrangement.
A bundled quote can be commercially simple and accounting-complex at the same time. The Distinct Promise Test The performance obligation step asks what the customer is really buying. You are not looking for every internal task. You are looking for promised goods or services that transfer value to the customer. Implementation planning, kickoff calls, and project management may support delivery without being separate promises. Training, migration, support, licenses, hardware, and customization often need a closer look. The mechanism is the distinct test. First, can the customer benefit from the item either on its own or with resources that are readily…
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