What is Standalone Selling Price?
Standalone Selling Price (SSP) is the price of a component of a contract if you purchase it separately. SSP is needed to allocate transaction price of a contract and that impacts the revenue recognition amounts. Previously, the term used was "Revenue Price", but was recently changed to Standalone Selling Price.
Standalone Selling Price Analysis
- Unit price. Think of a list price. For Example, you might have differences if you're selling software to resellers as compared to selling directly to customers.
- Discount Percentage of Unit list price. Depending on the volume, you might extend certain discounts. For example, a customer purchased 1000 units of a product, then the customer gets a discount.
- Gross Margin Percentage. You charge for certain services based on a target. For example, you base your price on a certain percentage margin, a quota that you would have to reach.
- Percentage of Base Unit Price. For example, you could price a service like software support at 15% of the license.
How are Standalone Selling Price configured?
There are three methods to load SSPs. If you already have your pricing setups in place, then you can automatically calculate them based on historical data. When they're automatically calculated, we call them observed standalone selling prices (OSSP).
When you go with the spreadsheet approach, you call this estimated selling prices (ESP). ESPs have two others options in terms of using a spreadsheet template. You can upload SSPs using a standalone selling price profile.
Generally SSP is calculated based on contracts (if data is available). If your product is new or you do not have enough contracts data then system uses ESP for allocation of contracts.
In such cases, you may try importing ESP values and run "Calculate Observed Standalone Selling Prices" process. You can setup SSP profiles to set the limits as well. Additional reference can be found here for more details on the SSP Profiles.
The other way to do it is by loading the standalone selling prices together with revenue basis data. If you do that, you are bypassing the pricing setups and just loading that along with the revenue data.
What is a Standalone Selling Price Profile?
Standalone selling price profile is a configuration that allows you to put all of your pricing setups in one place. Inside the Standalone Selling Price Profile Task, the is a "Load SSP" button that allows you to load the SSPs manually through a spreadsheet template.
Pricing Dimension Assignments. This configuration allows you to map your Pricing Dimension Structure (including its segments) to a document type. Those Source Documents are the documents that will contain revenue data to be populated into Revenue Management Interface Tables. The idea here is that the pricing is going to be specific to a document. More detailed information about Pricing Dimensions Structure, including Price Bands, Value Sets, Instances, can be found in Overview of Pricing Dimension Structure in Revenue Management Cloud.
Source Documents will be assigned to Pricing Dimensions. Source Document Types are used for integrating third-party applications and Revenue Management together. Examples of Source Documents are sales orders, warranty contracts, etc.
Performance satisfaction plan (also called Revenue Scheduling Rules) indicates how the revenue is going to be recognized. It dictates if we're going to recognize the revenue at a point in time at once, one period, or over time, multiple periods, etc.Below is a Video Demonstration on Managing SSP Profiles:
Below is a Video Demonstration on Creating SSPs:
Below is a Video Demonstration on verifying created SSPs:
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