---
sidebar_position: 3
title: Relative Standalone Selling Price (SSP) Allocation
description: How GAAPx calculates relative Standalone Selling Price (SSP) allocation across multi-element contracts using observable prices, cost-plus, and residual methods.
keywords:
  - standalone selling price
  - SSP allocation
  - relative SSP
  - multi-element arrangements
---

# 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 $i$:

```text
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** |