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A multi-year ramp deal sells the same product across consecutive years at a different contract rate each year. This page explains when a ramp is the right model, how DualEntry represents one internally, and how a ramp behaves across change orders and renewals. For the steps to create or edit a ramp, see Ramp Deals: Multi-Year Pricing.

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When to use a ramp

Use a ramp when the signed contract already commits to year-by-year prices (for example, a 3-year subscription that steps from $100 to $110 to $120 per unit). The ramp is predetermined at signature, so finance and revenue can forecast billed and recognized amounts from day one without waiting for annual amendments. Ad-hoc upgrades or downgrades after activation still go through a change order, not through editing the ramp schedule. A change order is the right path when commercial terms change outside the signed year schedule, such as adding seats mid-year or adjusting a rate that was not part of the original ramp. Ramps are separate from usage tiered pricing. Tiers change the rate as consumption volume grows within a period or obligation. Ramps change the contracted rate by year across the term. Configure each concern on its own controls so allocation and usage pricing stay clear.

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How DualEntry represents a ramp

Each year of the ramp is its own performance obligation on the contract. DualEntry keeps the accounting shape as N year obligations rather than one obligation with an embedded price schedule, which preserves per-year invoices, recognition lines, and change-order successors.
  • The same item appears on every year row.
  • Recognition and billing dates are contiguous year segments.
  • Contract rates differ by year.
  • Standalone selling price (list SSP) stays equal across the year rows so DualEntry can bill unevenly while allocating evenly under ASC 606.
  • DualEntry stores a shared ramp group ID on the year obligations so Edit Ramp can reopen the group reliably.
The UI helper treats the group as one ramp for authoring and reopen. Accounting treats each year as a distinct obligation with its own rate, dates, invoices, and recognition schedule. Equal SSP across years is what lets a step-up bill pattern still allocate transaction price evenly for recognition.

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Ramps across change orders and renewals

Change-order successors keep the same ramp group ID, so the ramp relationship survives the modification and Edit Ramp can still reopen the group. Auto-renewal starts a new term. Renewed successor obligations do not inherit the prior ramp group ID. If the renewal also steps by year, configure a new ramp on the renewed obligations rather than expecting the prior group to continue.

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Next steps

Last modified on September 1, 2026