Standalone selling price rules

The standalone selling price is defined as the price at which a vendor would sell a promised product (goods or services) separately to a customer.

ASC 606 allows for several different approaches to establishing standalone price for products sold. REVLOCK enables users to easily define rules that can be used to establish standalone price automatically in full compliance with ASC 606.

Standalone Price Policy

REVLOCK help easy configuration of Standalone Price rule using Standalone Price Policy. What follows explain different Standalone Price policies that REVLOCK supports.

Dollar Amount

When using this policy user will define a numeric standalone price for the product being sold. For example, when sold individually, 1-year SAAS subscription for Product A is $4000.

Dollar Amount Range

This policy is used when sales personals have some flexibity in price when selling products to customer. For example, when sold individually, price for 1-year SAAS subscription for a Product A is between $3200 and $3800.

Discount Percentage

When using this policy user will define a percentage discount that is given to the customer with respect to the list price. For example, when sold individually, 1-year SAAS subscription for Product A is sold at 10% discount from list price. So, if the list price for Product A at the time of sale is $4000 than standalone price will be $3600.

Simple Percent Net

Simple Percent Net policy allows REVLOCK users to configure Standalone Price rule for sales where pricing of one product is dependent on pricing of the other. For e.g. perpetual license for Product A is sold for $10,000. Pricing for annual support is 20% of the license i.e. $2000.

Apportioned Percent Net

Apportioned Percent Net policy allows REVLOCK users to configure Standalone Price rule for sales where pricing of one product (target) is dependent on pricing of the other (source). Additionally it takes in to account the term of the source and target product to calculate the apportioned standalone price. For e.g.

24 month Term license for Product A is sold for $20,000.

Advanced Support is sold for first 3 months. SSP for advanced support is 25% of the license.

First year standard support is given away for free

Second year standard support is sold for $2000

To use the Percent Net or Apportioned Percent Net Policy, you must provide a Product Type attribute for all the products that will be involved in your percent NET rule. The Product Type attribute is used to establish a relationship between products which are sold together in a given sales order.

Residual

This policy enables REVLOCK user to use traditional Residual method. This policy will generall be used in cases where pricing of license is highly variable. Here is example that would help understand standalone price calculation when Residual policy is used.

The standalone selling price is defined as the price at which a vendor would sell a promised product (goods or services) separately to a customer.

ASC 606 allows for several different approaches to establishing standalone price for products sold. REVLOCK enables users to easily define rules that can be used to establish standalone price automatically in full compliance with ASC 606.

Standalone Price Policy

REVLOCK help easy configuration of Standalone Price rule using Standalone Price Policy. What follows explain different Standalone Price policies that REVLOCK supports.

Dollar Amount

When using this policy user will define a numeric standalone price for the product being sold. For example, when sold individually, 1-year SAAS subscription for Product A is $4000.

Dollar Amount Range

This policy is used when sales personals have some flexibity in price when selling products to customer. For example, when sold individually, price for 1-year SAAS subscription for a Product A is between $3200 and $3800.

Discount Percentage

When using this policy user will define a percentage discount that is given to the customer with respect to the list price. For example, when sold individually, 1-year SAAS subscription for Product A is sold at 10% discount from list price. So, if the list price for Product A at the time of sale is $4000 than standalone price will be $3600.

Simple Percent Net

Simple Percent Net policy allows REVLOCK users to configure Standalone Price rule for sales where pricing of one product is dependent on pricing of the other. For e.g. perpetual license for Product A is sold for $10,000. Pricing for annual support is 20% of the license i.e. $2000.

Apportioned Percent Net

Apportioned Percent Net policy allows REVLOCK users to configure Standalone Price rule for sales where pricing of one product (target) is dependent on pricing of the other (source). Additionally it takes in to account the term of the source and target product to calculate the apportioned standalone price. For e.g.

24 month Term license for Product A is sold for $20,000.

Advanced Support is sold for first 3 months. SSP for advanced support is 25% of the license.

First year standard support is given away for free

Second year standard support is sold for $2000

To use the Percent Net or Apportioned Percent Net Policy, you must provide a Product Type attribute for all the products that will be involved in your percent NET rule. The Product Type attribute is used to establish a relationship between products which are sold together in a given sales order.

Residual

This policy enables REVLOCK user to use traditional Residual method. This policy will generall be used in cases where pricing of license is highly variable. Here is example that would help understand standalone price calculation when Residual policy is used.

Updated on: 21 / 08 / 2021