> For the complete documentation index, see [llms.txt](https://docs.rillet.com/EjmEP4KZ9BVp9j2ho4Mh/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.rillet.com/EjmEP4KZ9BVp9j2ho4Mh/accounts-receivable/products/create-and-add-a-product-bundle.md).
# Create and Add a Product Bundle
A product bundle combines two or more products into a single contract line, priced and billed as one item in **Rillet**. Revenue recognition still tracks each component separately, even though the contract displays only the bundle.
### Create a Product Bundle
Follow these steps to create a product bundle:
1. Click **Accounts Receivable** in the left sidebar to expand its menu.
2. Select **Products** to open the products list.
3. Click the **Bundles** tab to switch to the bundles list.
4. Click **Add Bundle** to start a new bundle.
5. Enter a **Bundle Name** and, optionally, a **Description**.
6. Select 2 to 10 products under **Select products**.
7. Choose **Recurring** or **One-time** under **Pricing**, and enter a **Bundle price**.
8. Turn on **Count to MRR/ARR** to have the bundle count toward MRR/ARR, or turn on **Show only the bundle line on invoices** to hide its components on invoices.
9. Click **Create Bundle** to save it.
{% hint style="warning" %} **Warning:**
A bundle cannot contain other bundles, only individual products, and usage-priced or milestone-based products cannot be added to a bundle. Once a bundle is added to a contract, it cannot be deleted, only deactivated.
{% endhint %}
The bundle appears in the **Bundles** list, ready to add to a contract.
### Add a Bundle to a Contract
If you are starting a new contract, see [**Add a Contract**](/EjmEP4KZ9BVp9j2ho4Mh/accounts-receivable/contracts/add-a-contract.md) for the full flow. Once you reach the contract's **Products** step, complete these steps to add a bundle:
1. Click **Add Product** to open the product picker.
2. Click **Product bundles** to switch to the bundles tab.
3. Select the bundle, then click **Add 1 Bundle** (the button label reflects the number selected).
4. Set the price, dates, and any other line details the same way as for any other product.
{% hint style="info" %} **Note:**
Tax can be configured on the bundle level but will be calculated at the product component level. Bundle lines currently do not support discounts.
{% endhint %}
The bundle price becomes the amount billed for that line, with its component products listed underneath for reference. A contract can mix bundle lines with regular product lines.
### Understand How Revenue Is Allocated Across Components
Rillet splits a bundle's total contract value across its components based on each component's price, annualized so a recurring and a one-time component can be compared fairly. A monthly-recurring component's annualized price is its price multiplied by 12, while a one-time component's annualized price is its price as-is. Each component then receives the same share of the bundle's total value as its own share of the combined annualized price. Rillet recognizes revenue for that share on the component's own schedule.
For example, a bundle priced at $12,000 for a one-year contract line splits between a one-time component and a monthly-recurring component as follows:
| Component | Price | Annualized Price | Share | Allocated Revenue |
| ------------------------- | ---------- | ---------------- | ------ | ----------------- |
| One-time product | $21,877.84 | $21,877.84 | 30.42% | $3,650.54 |
| Monthly-recurring product | $4,169.89 | $50,038.68 | 69.58% | $8,349.46 |
| Total | N/A | $71,916.52 | 100% | $12,000.00 |
The monthly-recurring product receives the larger share, since its annualized price is higher than the one-time product's, even though its catalog price alone is smaller.
### See Also
To learn more about products and contracts in **Rillet**, review these articles:
* [**Add a Contract**](/EjmEP4KZ9BVp9j2ho4Mh/accounts-receivable/contracts/add-a-contract.md)
* [**Create a New Product**](/EjmEP4KZ9BVp9j2ho4Mh/accounts-receivable/products/create-a-new-product.md)
* [**View Product Bundles in Reporting**](/EjmEP4KZ9BVp9j2ho4Mh/reporting/view-product-bundles-in-reporting.md)
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