Marketing and Promotional Activities

As part of a marketing promotion, a vendor may provide customers with the right to obtain additional software products at a discount from the normal selling price (e.g., the customer is offered small discounts on future purchases of software). Such activities are not included in the scope of SOP 97-2. If, however, the vendor provides the customers with more significant discounts, those discounts must be evaluated to determine whether they are significant incremental discounts that must be accounted for as additional elements of the arrangement.