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Order Delta TCV Calculation III

This section provides an example of calculating Total Contract Value (TCV) adjustments when subscription quantities change over a billing period.

Example 3

For another example, suppose that you have subscribed a customer to 10 units of your product for 12 months, with a monthly billing period and a list price of $5.00 per unit per month. The corresponding Rate Plan Charge (actually the charge segment RPC-1) will have a TCV of $600 ($5 per unit per month × 10 units × 12 months) from 2021-01-01 to 2021-12-31.

After 3 months, you place an order and increase the quantity to 13 units, so that the TCV of the Rate Plan Charge becomes $735 = ($5 per unit per month × 10 units × 3 months) + ($5 per unit per month × 13 units × 9 months).

The above changes are interpreted as an OrderDeltaTcv of -$450 for RPC-1 between 04-01 to 12-31, due to the fact that the duration of RPC-1 has shrunk; and an OrderDeltaTcv of $585 for RPC-2 between 04-01 to 12-31, because Zuora creates a new RatePlanCharge object for the new price from 04-01 to 12-31, as shown below.

Order Delta Tcv3

StartDate

EndDate

RatePanChargeId

GrossAmount

NetAmount

2021-04-01

2022-01-01

4028fc827a0e48c1017a0e4dccc60002 (for RPC-2)

$585

$585

2021-04-01

2022-01-01

4028fc827a0e48c1017a0e58b9330014

(for RPC-1)

-$450

-$450

See Object and Fields for more details about the fields on this object.