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.

Discount Percentage Range

Similar to Discount Percentage above, in this policy user will define a range of percentage discount that can be given to the customers with respect to the list price. For example, when sold individually, 1-year SAAS subscription for Product A can be sold with discount ranging between 10% and 20%. So, if the list price for Product A at the time of sale is $4000 than standalone price range will be between $3200 and $3600.

Percent Net

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.

Percent Net Range

Similar to Percent Net policy above, in this policy user will define a range of percentage of sale price. For example, perpetual license for Product A is sold for $10,000. Pricing for annual support is generally between 15% to 20% of the license.

To use the Percent Net or Percent Net Range 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 understande 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.

Discount Percentage Range

Similar to Discount Percentage above, in this policy user will define a range of percentage discount that can be given to the customers with respect to the list price. For example, when sold individually, 1-year SAAS subscription for Product A can be sold with discount ranging between 10% and 20%. So, if the list price for Product A at the time of sale is $4000 than standalone price range will be between $3200 and $3600.

Percent Net

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.

Percent Net Range

Similar to Percent Net policy above, in this policy user will define a range of percentage of sale price. For example, perpetual license for Product A is sold for $10,000. Pricing for annual support is generally between 15% to 20% of the license.

To use the Percent Net or Percent Net Range 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 understande standalone price calculation when Residual policy is used.

Published on: 14 / 10 / 2020