Accounting Contract: Step 1: Identify the Contract
Order Detail Selling Prices and Allocation
Source Customer Standalone
Document Source POB Number Item Quantity UOM Facing Price Selling Price
Date Reference (CFP) SSP (per Unit)
Step 2: Identify the Performance Obligations Step 4: Allocate the Transaciton Price using SSP as bas
Step 3: Determine the Transaction Price Total CFP:
Transaction
Transaction total and Estimated Consideration Estimate
Total Standalone Selling Price Allocation Baseline and Relativity
Allocation Performance Obligation Attributes
Extended Revenue / POB Allocation Point in Either party Initial
Standalone Relativity: Value Discount Time or Over Acts Date Initial Performance
Selling Price CFP / Total SSP (SSP * Relativity) (Rev minus Time Performance Event
CFP)
he Transaciton Price using SSP as basis Step 5a: Accrue the Obligation
Revenue Total:
Total SSP: Relativity (%): Expected Discount Total: Customer facing total must equal Revenue & Performance Obligation Total
Must be Zero
Consideration
Relativity equals Total Customer Facing Price divided by total SSP, adjusted fo
Can be over or under 100%
s Invoicing Other
Estimated Other
Transfer to Revenue Event Billing Plan Necessary
Customer Date Data
Step 5b: Recognize Revenue
Revenue & Performance Obligation Total
Facing Price divided by total SSP, adjusted for exceptions.
Accounting Contract: 10020 Step 1: Identify the Contract
Order Detail Selling Prices and Allocation
Source Extended Standalone
Document Source POB Number Item Quantity UOM Customer Selling Price
Date Reference Facing Price SSP (per Unit)
(CFP)
Step 2: Identify the Performance Obligations Step 4: Allocate the Transaciton Price using SSP as bas
1-Jan-16 1001 iPhone 7 1 Each 540 700
1-Jan-16 1002 Voice Plan 3 Month 360 100
Step 3: Determine the Transaction Price Total CFP:
Transaction
Transaction total and Estimated Consideration Estimate
Total Standalone Selling Price Allocation Baseline and Relativity 900
Allocation Performance Obligation Attributes
Extended Revenue / POB Allocation Point in Either party Initial Estimated
Standalone Relativity: Value Discount Time or Over Acts Date Initial Performance Transfer to
Selling Price CFP / Total SSP (SSP * Relativity) (Rev minus Time Performance Event Customer Date
CFP)
he Transaciton Price using SSP as basis Step 5a: Accrue the Obligation Step 5b: Recognize Revenue
700 0.9 630 90 PIT 1-Jan-16 Handed over 1-Jan-16
mobile
Activated 01-Jan-16 to
300 0.9 270 -90 OT 1-Jan-16 SIM 31-Mar-16
Revenue Total:
Total SSP: Relativity (%): Expected Discount Total: Customer facing total must equal Revenue & Performance Obligation Total
Must be Zero
Consideration
Relativity equals Total Customer Facing Price divided by total SSP, adjusted for e
1000 0.9 900 0 Can be over or under 100%
Invoicing Other
Other
Revenue Event Billing Plan Necessary
Data
Step 5b: Recognize Revenue
Handed over Immediate
mobile
Service Month
Delivery OT End
rmance Obligation Total
ed by total SSP, adjusted for exceptions.
Accounting Contract: 10020 Step 1: Identify the Contract
Order Detail Selling Prices and Allocation
Source Extended Standalone Extended
Document Source POB Number Quantity UOM Customer Selling Price Standalone
Date Reference Facing Price SSP (per Unit) Selling Price
(CFP)
Step 2: Identify the Performance Obligations Step 4: Allocate the Transaciton Price using SSP as basis
1-Jan-16 1001 1 Each 540 700 700
1-Jan-16 1002 3 Month 360 100 300
Step 3: Determine the Transaction Price Total CFP:
Transaction Total SSP:
Transaction total and Estimated Consideration Estimate
Total Standalone Selling Price Allocation Baseline and Relativity 900 1000
Accounting
Balance Sheet Asset
Date Event Accounting Event in RMCS
Cash Receivable
1-Jan-16 Handed Over Mobile Initial Performance
1-Jan-16 Handed Over Mobile Performance Obligation Satisfied
1-Jan-16 Handed Over SIM Initial Performance
31-Jan-16 End of the Month Performance Obligation Satisfied
28-Feb-16 End of the Month Performance Obligation Satisfied
31-Mar-16 End of the Month Performance Obligation Satisfied
0 0
Performance Obligation Attributes
Revenue / POB Allocation Point in Either party Initial Estimated
Relativity Value Discount Time or Over Acts Date Initial Performance Transfer to Revenue Event
(SSP * Relativity) (Rev minus Time Performance Event Customer Date
CFP)
rice using SSP as basis Step 5a: Accrue the Obligation Step 5b: Recognize Revenue
0.9 630 90 PIT 1-Jan-16 Handed over 1-Jan-16 Handed over
mobile mobile
Activated 01-Jan-16 to Service
0.9 270 -90 OT 1-Jan-16 SIM 31-Mar-16 Delivery OT
Revenue Total:
Relativity (%): Expected Discount Total: Customer facing total must equal Revenue & Performance Obligation Total
Must be Zero
Consideration
Relativity equals Total Customer Facing Price divided by total SSP, adjusted for exceptions.
0.9 900 0 Can be over or under 100%
Income
Balance Sheet Asset Balance Sheet Liability
Statement
Clearing Contract Contract Contract Revenue
Asset Liability Discount
630 -630
630 -630
270 -270
90 -90
90 -90
90 -90
0 900 0 0 -900
Invoicing Other
Other
Billing Plan Necessary
Data
Immediate
Month
End
n Total
djusted for exceptions.
Accounting Contract: 10020 Step 1: Identify the Contract
Order Detail Selling Prices and Allocation
Source Extended Standalone Extended
Document Source POB Number Quantity UOM Customer Selling Price Standalone
Date Reference Facing Price SSP (per Unit) Selling Price
(CFP)
Step 2: Identify the Performance Obligations Step 4: Allocate the Transaciton Price using SSP as basis
1-Jan-16 1001 1 Each 540 700 700
1-Jan-16 1002 3 Month 360 100 300
Step 3: Determine the Transaction Price Total CFP:
Transaction Total SSP:
Transaction total and Estimated Consideration Estimate
Total Standalone Selling Price Allocation Baseline and Relativity 900 1000
Accounting
Balance Sheet Asset
Date Event Accounting Event in RMCS
Cash Receivable
1-Jan-16 Handed Over Mobile Initial Performance
1-Jan-16 Handed Over Mobile Performance Obligation Satisfied
AR Invoice Accounted 540
AR Receipt Accounted 540 -540
Billing Data Loaded into RMCS Performance Obligation Billed
1-Jan-16 Handed Over SIM Initial Performance
31-Jan-16 End of the Month Performance Obligation Satisfied
AR Invoice Accounted 120
AR Receipt Accounted 120 -120
Billing Data Loaded into RMCS Performance Obligation Billed
28-Feb-16 End of the Month Performance Obligation Satisfied
AR Invoice Accounted 120
AR Receipt Accounted 120 -120
Billing Data Loaded into RMCS Performance Obligation Billed
31-Mar-16 End of the Month Performance Obligation Satisfied
AR Invoice Accounted 120
AR Receipt Accounted 120 -120
Billing Data Loaded into RMCS Performance Obligation Billed
900 0
Performance Obligation Attributes
Revenue / POB Allocation Point in Either party Initial Estimated
Relativity Value Discount Time or Over Acts Date Initial Performance Transfer to Revenue Event
(SSP * Relativity) (Rev minus Time Performance Event Customer Date
CFP)
rice using SSP as basis Step 5a: Accrue the Obligation Step 5b: Recognize Revenue
0.9 630 90 PIT 1-Jan-16 Handed over 1-Jan-16 Handed over
mobile mobile
Activated 01-Jan-16 to Service
0.9 270 -90 OT 1-Jan-16 SIM 31-Mar-16 Delivery OT
Revenue Total:
Relativity (%): Expected Discount Total: Customer facing total must equal Revenue & Performance Obligation Total
Must be Zero
Consideration
Relativity equals Total Customer Facing Price divided by total SSP, adjusted for exceptions.
0.9 900 0 Can be over or under 100%
Income
Balance Sheet Asset Balance Sheet Liability
Statement
Clearing Contract Contract Contract Revenue
Asset Liability Discount
630 -630
630 -630
-540
540 -630 90
270 -270
90 -90
-120
120 -90 -30
90 -90
-120
120 -90 -30
90 -90
-120
120 -90 -30
0 0 0 0 -900
Invoicing Other
Other
Billing Plan Necessary
Data
Immediate
Month
End
n Total
djusted for exceptions.
