# Material right

> Material right — A customer option to buy additional goods or services at a discount it would not get without the contract — a renewal discount, loyalty points — accounted for as a separate performance obligation, deferring part of today's price.

Source: https://lopifi.com/glossary/material-right
Part of: Lopifi — US GAAP books on autopilot, reviewed by a CPA (https://lopifi.com)

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**What is material right?** In accounting, material right means a customer option to buy additional goods or services at a discount it would not get without the contract — a renewal discount, loyalty points — accounted for as a separate performance obligation, deferring part of today's price.

## Words this system refuses for it

- marketing offer
- free gift

- **Category:** Revenue recognition
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)
- **Related:** performance-obligation