Bundle Price Allocation (SSP)

How to use it

Enter what the customer is paying and what each component would sell for on its own. The bundle price is split across the components in proportion to those standalone prices, which is how the discount gets shared rather than assigned.

Where the number comes from

• Each component’s share is its standalone selling price divided by the total of all standalone prices.
• The allocated price is that share applied to what the customer actually pays.
• The discount is the gap between total standalone value and the bundle price, and it lands on every component proportionally.
• Revenue for each obligation is then recognised on its own timing — the licence on delivery, services as performed, support across the term.
• A component with no standalone price is excluded rather than assumed to be free.

What goes wrong

The part most calculators leave out.

• Standalone selling price is often not observable. Where you never sell implementation separately, it has to be estimated — expected cost plus a margin, or an adjusted market assessment — and that estimate is exactly what auditors challenge.
• This assumes every component is a distinct performance obligation. Implementation that a customer could not buy elsewhere and that materially customises the software may not be distinct, in which case it does not get its own allocation at all.
• Discounts can be allocated to a specific obligation, but only when there is observable evidence the discount belongs there. That exception is narrow and frequently claimed without support.
• Variable consideration — usage fees, bonuses, penalties — has to be estimated and constrained before allocation. None of that is modelled here.
• Getting allocation wrong shifts revenue between periods rather than changing its total, which is precisely why it survives undetected until an audit or a diligence process.

Questions

What is standalone selling price?

What you would charge for that component if you sold it on its own to a similar customer. Where you have actual separate sales, use those; where you do not, it must be estimated and the basis documented.

Can I allocate the whole discount to one component?

Only where there is observable evidence the discount genuinely relates to that obligation — for instance if you regularly sell the other components at full price as a bundle. Absent that evidence, the discount is allocated proportionally.

Does this apply if there is no discount?

The allocation still runs, but each component simply receives its standalone price. Allocation matters whenever the bundle price differs from the sum of the parts, in either direction.

Does anything I type get sent anywhere?

No. The whole calculation runs in your browser. Nothing is transmitted, stored, or logged, and there is no account to create.