Multi-year SaaS deals often ramp: the customer pays less in year 1 and more later for the same subscription. The invoices rise; revenue often does not follow them. Here is a $60,000 / $90,000 / $120,000 ramp worked through with the Soluqube engine.
The contract
36 months from November 2026, $270,000 in total, the same stand-ready platform access every year. Under ASC 606-10-25-14(b) and 25-15 that is a series of distinct periods accounted for as one performance obligation, so the relative SSP allocation (ASC 606-10-32-28 to 32-41) puts the full $270,000 on it.
The engine's schedule
| Month | Revenue | Unrecognised transaction price |
|---|---|---|
| Nov 2026 | $7,500.00 | $262,500.00 |
| Dec 2026 | $7,500.00 | $255,000.00 |
| ... | $7,500.00 every month | |
| Oct 2029 | $7,500.00 | $0.00 |
| Total | $270,000.00 |
Billing vs revenue
When revenue runs ahead of billing the entity holds a contract asset; when billing runs ahead, a contract liability (ASC 606-10-45-1 to 45-4).
The table below is computed outside the engine; it assumes annual billing in advance at each contract-year start. The engine does not model billing or contract assets.
| Point | Cumulative revenue | Cumulative billing | Net position |
|---|---|---|---|
| Nov 2026, after bill 1 | 7,500 | 60,000 | 52,500 contract liability |
| Oct 2027, year-1 end | 90,000 | 60,000 | 30,000 contract asset |
| Nov 2027, after bill 2 | 97,500 | 150,000 | 52,500 contract liability |
| Oct 2028, year-2 end | 180,000 | 150,000 | 30,000 contract asset |
| Nov 2028, after bill 3 | 187,500 | 270,000 | 82,500 contract liability |
| Oct 2029 | 270,000 | 270,000 | 0 |
When a ramp is not straight-line
One ratable line only holds if the customer receives the same service every year. If later years add seats, a higher tier or modules, the step-up may reflect different standalone selling prices, and the analysis goes back to identifying obligations and estimating SSP for each (ASC 606-10-32-31 to 32-35). That is a judgement for the entity and its auditor.
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