Build an ASC 606 SSP allocation engine for multi-element arrangements

Steps

1. Identify each distinct performance obligation in the arrangement and assign its standalone selling price (SSP) using observable prices, adjusted market assessment, or expected-cost-plus-margin methods per ASC 606-10-32.
2. Sum all SSPs in the arrangement; compute each obligation's allocation percentage as its SSP divided by the total SSP sum.
3. Multiply the transaction price (net of variable consideration constrained under ASC 606-10-32-11) by each allocation percentage to produce the allocated revenue amount per obligation.
4. Store the resulting arrangement in a database table with columns for arrangement_id, obligation_id, ssp, allocated_amount, recognition_method, and recognition_start/end dates.
5. On each billing or fulfillment event, query the table, apply the recognition method (point-in-time vs. over-time), and write the recognized revenue entry to the GL.
6. Expose a recalculation endpoint that reruns allocation when SSP bands or transaction price is modified, logging before/after values for audit.