---
sidebar_position: 3
title: Cadence, Ramp Deals & Discounts
description: Structuring multi-year ramp contracts, custom discount schedules, promotional credits, and ASC 606 discount allocation.
keywords:
  - ramp deals
  - discount allocation
  - billing cadence
  - multi year contracts
---

# Cadence, Ramp Deals & Discounts

**Cadence, Ramp Deals & Discounts in GAAPx** manages the operational and accounting complexities of multi-year enterprise contracts with escalating commitments, free service periods, and contractual discounts.

:::info SCREENSHOT PLACEHOLDER: Multi-Year Ramp Schedule Builder
**Location in App**: `App > Contracts > [Contract ID] > Ramp Schedule`  
**Visual Description**: Ramp contract view showing Year 1 ($50k), Year 2 ($100k), and Year 3 ($150k) with revenue smoothing curve.  
**Recommended Dimensions**: `1200 x 675`  
:::

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## Accounting for Ramp Deals under ASC 606

In a multi-year ramp deal where pricing increases annually for identical services (e.g. Year 1 = $50,000, Year 2 = $100,000, Year 3 = $150,000; Total = $300,000):
* **Billing Subledger**: Invoices $50k in Y1, $100k in Y2, and $150k in Y3 on scheduled invoice dates.
* **Revenue Subledger**: Under ASC 606-10-32-28, revenue is recognized straight-line at **$100,000 per year ($8,333.33/month)** across all 36 months, generating an **Unbilled Contract Asset** in Year 1 that amortizes down in Year 3.

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## Discount Types & Allocation

* **Contract-Wide Percentage Discount**: Proportionately allocated across all performance obligations based on relative standalone selling prices.
* **Item-Specific Discount**: Assigned strictly to a specific line item (e.g. 50% discount on initial implementation services).
* **Future Service Credits**: Tracked as contract liabilities until drawn down by usage.