If your firm in India, Pakistan or the Philippines prepares revenue support for a US SaaS client, the standalone selling price (SSP) allocation is the part the client's auditor is most likely to question. This guide sets out what that auditor generally asks for, the documentation pack an outsourced team can build for each contract, a worked example that ties to the cent, and who signs what. The rounding mechanics are covered in our residual-cent post, and the reasons reviewers distrust opaque tools are in why finance teams reject black-box AI. This article covers the handoff: turning contracts into evidence a US Controller can review, approve and give to the auditor.
What will the US client's auditor ask for on SSP?
Auditors generally look for evidence that each standalone selling price has a documented basis, that observable inputs were used where available, and that the allocation follows ASC 606-10-32-28 to 32-41. They also look for evidence that the client's numbers are complete and accurate, and that management reviewed the judgements.
ASC 606-10-32-29 requires allocation on a relative SSP basis. Under 32-31 to 32-35, SSP is the observable price where one exists, and otherwise an estimate that uses observable inputs as far as possible. Paragraphs 32-36 to 32-41 cover discounts and variable consideration.
PCAOB AS 1105 asks auditors to evaluate whether information produced by the company is reliable enough, which usually means testing its accuracy and completeness. AS 1215 governs the auditor's own documentation. In practice, expect requests for source data, recalculations, and evidence of who approved what.
What goes in the SSP documentation pack?
A pack that works for a single contract has six parts: a contract inventory, a performance obligation memo citing clause page and excerpt, an SSP basis per obligation, the allocation calculation, a schedule that ties to the transaction price, and a record of who confirmed the terms and when, with the Controller's sign-off kept alongside. Each export also carries a version and a hash.
- Contract inventory. Each contract, order form and SOW, with date, counterparty, currency and transaction price.
- Performance obligation memo. For each obligation, the clause page and a short verbatim excerpt that establishes it.
- SSP basis per obligation. The method (observable price, adjusted market assessment, expected cost plus margin, residual) and the source data, such as the price list version or the standalone sales range and period.
- Allocation calculation. Relative SSP weights, the allocated amounts, and a written rule for which line absorbs any residual cent.
- Revenue schedule. Period-by-period amounts that sum to each allocated amount and, in total, to the transaction price.
- Review and version control. A record of who confirmed the terms and when, the Controller's sign-off kept with the pack (it is not captured in the tool), plus a version number and SHA-256 hash of the export so the auditor can confirm it is the file that was reviewed.
How does the worked example tie to the transaction price?
It ties when the residual cent is assigned by a fixed rule. A $100,000 contract with SSPs of $30,000, $30,000 and $120,000 allocates $16,666.67, $16,666.67 and $66,666.66, totalling $100,000.00. Rounding each line independently gives $100,000.01, which leaves a one-cent difference the reviewer has to explain.
| Obligation | SSP | Allocated |
|---|---|---|
| Implementation | $30,000 | $16,666.67 |
| Premium support | $30,000 | $16,666.67 |
| Platform subscription | $120,000 | $66,666.66 |
| Total | $180,000 | $100,000.00 |
The schedule follows the same principle. Take a $100,000 ratable amount over 36 months: it schedules as 35 × $2,777.77 plus a final month of $2,778.05, which is exactly $100,000.00. The final period absorbs the remainder, so the deferred balance ends at $0.00. You can re-perform the allocation with the SSP allocation calculator.
What should the handoff checklist confirm?
Before the pack goes to the client, confirm that every number traces back to a source document and every judgement has an owner. The checklist below is the minimum we suggest for each contract. The client's Controller should be able to review it without having to rebuild anything.
| Item | Prepared by | Check |
|---|---|---|
| Contract inventory complete | Outsourced team | Agrees to client's contract list |
| POB memo with page + excerpt | Outsourced team | Every obligation cited |
| SSP method and source data | Outsourced team, from client data | Method named per line |
| Allocation ties to transaction price | Outsourced team | Difference = $0.00 |
| Schedule ties to allocation | Outsourced team | Ending deferred = $0.00 |
| Judgements approved | Client Controller | Signed and dated |
| Export version + SHA-256 hash | Outsourced team | Hash recorded in sign-off |
Who signs what?
The client owns every accounting judgement: which obligations exist, which SSP method applies, and which policies govern discounts and rounding. The outsourced team prepares the evidence, calculations and schedules and documents its sources. The Controller reviews and signs, and only the client's management represents the numbers to the auditor.
Write this boundary into the engagement letter. Label any SSP estimate the team proposes as a proposal until the Controller approves it, and flag contract modifications to the client separately.
How can your firm try it on three client contracts?
Your firm can get a free 3-contract workpaper through the design partner programme. You confirm the obligations and stated prices, and you get back the allocation, a schedule that ties to the cent, page-and-excerpt clause evidence and a hashed export, ready for the Controller to review.
Firm Tool Access is $49 a month per firm, a founding price for the first 10 customers (pricing). In the app, uploaded text-layer PDFs also show a highlight on the cited line; built-in samples use an approximate overlay.
Can an outsourced team choose the SSP method for a client?▼
The team can propose a method and document its basis. Choosing it is a management judgement under ASC 606-10-32-31 to 32-35, so the client's Controller approves it, and the pack records who confirmed the terms and the SSP basis.
Why record a hash of the export?▼
A SHA-256 hash lets the client and auditor confirm the file under review is the exact version that was exported. Any change to the file changes the hash.
What if the allocated lines are a cent off the transaction price?▼
Assign the residual cent with a written, consistently applied rule, for example to the last-listed line. The allocation then ties exactly, as in the $100,000 example above. Our residual-cent post compares the different rules.