Material rights · loyalty programs · renewal options

Why this pattern exists

Loyalty points, renewal discounts, volume tiers, loyalty cards — all may create material rights that are separate POs at allocation.

Trigger conditions

Authoritative paragraphs

Every codification reference below is verified against the FASB Codification structure or Big-4 public guidance. No fabricated cites.

End-to-end behavior

1. 1AI-flagged material right candidates · human confirms
2. 2Material right SSP modeling: incremental discount × estimated exercise rate
3. 3Allocates portion of contract TP to the material right (a separate PO)
4. 4Recognizes when option exercised or expires

What auditors flag

Common mistakes preparers make on this pattern. The platform's confidence routing surfaces these for reviewer ratification before sign-off.