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Separate Items on a Subscription into Different Contracts in RMCS? — Cloud Customer Connect
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Separate Items on a Subscription into Different Contracts in RMCS?

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edited Mar 31, 2021 6:23PM in Revenue Management 2 comments

Summary

Attempting to separate the items on the same subscription into different contracts in RMCS

Content

Hello,

We are trying to separate out the different line items that are on the same subscription into different contracts in RMCS. For example, if we have two items (they could be fixed or usage charge, does not matter) and we interface it to RMCS, they appear on the same contract. We are trying to have each item appear on their own separate contract.

Due to ASC 606, the % allocation of revenue recognized for each product is based on the standard price and allocate it as such. The items on the subscription do not have anything to do with each other in terms of performance obligations and are completely separate, so the allocation of revenue should not be on based on the items being bundled together.

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