Relative Standalone Selling Price (SSP) Allocation
Relative Standalone Selling Price (SSP) Allocation
Relative Standalone Selling Price (SSP) Allocation in GAAPx automates ASC 606 Step 4 by distributing total contract transaction price across all identified performance obligations based on their relative standalone values.
:::info SCREENSHOT PLACEHOLDER: Relative SSP Calculation Table
Location in App: App > Revenue > [Contract ID] > SSP Allocation
Visual Description: SSP allocation matrix showing Contract Price, Standalone Value, Allocation Percentage, and Allocated Revenue per POB.
Recommended Dimensions: 1200 x 675
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The Allocation Formula
For each Performance Obligation $i$:
Allocated Price (POB i) = Total Transaction Price * (SSP of POB i / Sum of All POB SSPs)
Worked Example: Multi-Element SaaS Deal
A customer purchases a 1-year bundle for a discounted total price of $100,000:
- SaaS Subscription: Stated Price = $90,000 | Established SSP = $100,000
- Professional Onboarding: Stated Price = $10,000 | Established SSP = $25,000
- Total SSP Sum: $$100,000 + $25,000 = $125,000$ (Bundle discount = $20%$)
| Performance Obligation | Contract Price | Standalone Price (SSP) | % of Total SSP | Allocated Revenue |
|---|---|---|---|---|
| SaaS Subscription | $90,000 | $100,000 | 80.0% | $80,000 ($6,666.67/mo) |
| Professional Onboarding | $10,000 | $25,000 | 20.0% | $20,000 (Upon go-live) |
| Total | $100,000 | $125,000 | 100.0% | $100,000 |