Agent vs Principal- Software reseller

[sheetal02116]

Hello, I work for an organisation that is a reseller and sells software licences to customers. I am trying to understand if we are an Agent or Principal and that will have a corresponding effect on how we report. I have read the IFRS 15 guidance and two important points that come out if it are:
1) Identifying the goods and services to be provided
and
2) Assessing whether we have control over each specified good or service 'before' that good or service is transferred to the customer.

With respect to the first condition - yes, I believe we can identify the good/service we are providing even though they may be a standard licence.
With respect to the second condition- I don't believe we have control over the good/service, 'before' that is transferred. When we receive an order from a customer, we then let the manufacturer know the number and type of licences to be ordered. The licences are then earmarked for the customer with a licence key for the specified customer, which means we control the good/service 'after' that is transferred over to the customer.

Given these conditions, I believe we are an agent rather than a principal. However, I need to be certain and therefore I am looking for help, so I can understand if there are other things I need to bear in mind, and whether my analogy above holds true. Any help/ guidance will be greatly appreciated.
Thanks,

[JRSB]

I don't know if you'll get certainty because it's a judgement rather than a fact.

Do you set prices?

[sheetal02116]

I's be happy if I get a response saying its more likely / probable that we are acting as an agent.

We have some discretion, its usually our sales guys who will offer a discount from the standard asking price, just to boost up sales.

[JRSB]

Who deals with post-sale problems with the software? presumably not you so all seems like agent to me

https://ifrscommunity.com/knowledge-bas ... ss-vs-net/

[sheetal02116]

Thanks JRSB. much appreciated.