1. Using Revenue Management
  2. Allocate Revenue Based on Extended Standalone Selling Prices

Allocate Revenue Based on Extended Standalone Selling Prices

If you use performance obligation templates, you can optionally use component selling prices (the price of an item or service when its sold as part of a bundle) to allocate revenue within a performance obligation using the extended standalone selling price amount.

To allocate revenue based on component selling prices:

  1. Enable the Derive pricing dimension combination option in the Create Performance Obligation Template page.

  2. Select Extended SSP amount for the allocation basis. The Identify Customer Contract process distributes the performance obligation-level allocated revenue to the underlying promised detail lines for the obligation using the ratio of the promised detail line's component selling prices.

You must then upload the component selling prices for a performance obligation template and item combination, for a particular pricing dimension, effective period, and currency.

Additional Considerations

When using this feature you can modify the Allocation Basis option. Note that:

  • The default value is blank.

  • The Allocation Basis option changes take effect from the time the changes are saved, and are applied to all processing from that point forward.

  • Changes aren't applied retrospectively.

If you change the Allocation Basis option from blank or Selling amount to Extended SSP amount:

  • The Identify Customer Contracts process applies the new logic from that point forward.

  • Changes apply only to new performance obligations created for the template.

  • The Identify Customer Contracts process distributes performance obligation revenue to promised detail lines based on the ratio of the component selling prices.

  • For each line associated with a bundle, the value in the Unit SSP column represents the component selling price and not the standalone selling price of the item or service.

  • For performance obligations with promised detail lines in which the component selling price can't be assigned or is missing, the Identify Customer Contracts process:

    • Marks the promised detail line as Missing SSP.

    • Sets the Contract Allocation Status to Not Allocated with an Allocation Pending Reason of SSP Not Available.

If you change the Allocation Basis option from Extended SSP amount to Selling amount or blank:

  • The Identify Customer Contracts process applies the new logic from that point forward.

  • Changes apply only to new performance obligations created for the template.

  • The Identify Customer Contracts process ignores the component selling prices on the promised detail lines.

  • The Identify Customer Contracts process distributes performance obligation revenue to promised detail lines based on the ratio of the promised detail line selling amount.