If two companies agree to bundle each other's product and resell, when is it cogs or revenue if you are the distributor or licensor? I am assuming it is cogs if you are the licensor and revenue if you

Assuming the distributor and the licensor are separate legal entities, and the distributor handles the invoicing to the end client/user, the distributor would record the revenue from end client/user and the partner margin as COGS. The licensor would record the amount the distributor recorded as COGS as revenue. For example, a software license is sold to an end user for $100 and the licensor charges a 25% margin fee. The distributor would record $100 in revenue and $25 in COGS. The licensor would record $25 in revenue.