Delta TCV in Ramp Interval Delta Metrics - Example
This example demonstrates the calculation of Delta TCV metrics in Order 2, comparing Subscription Version 2 with Version 1, and highlights changes in TCV across different intervals.
Example:
In this example, we continue to use the same sample subscription above as in TCV in Ramp Interval Metrics and show the Delta TCV metrics calculation in Order 2. Order 2 creates Subscription Version 2 based on Subscription Version 1.
Step 1 - Combine the TCV in the Ramp Interval Metrics level for each charge per Ramp Interval.
The TCV in the Ramp Interval Metrics level for Subscription Version 2 is as in the table below. For Charge 1, the two items of TCV for Interval 2 need to be combined.
|
Interval |
Charge Segment |
Start Date |
End Date |
Gross TCV |
Discount TCV |
Net TCV |
|---|---|---|---|---|---|---|
|
Interval 1 |
Charge 1 > Segment 1 |
2021/1/1 |
2021/10/31 |
50 |
0 |
50 |
|
Charge 1 > Segment 2 |
2021/11/1 |
2021/12/31 |
20 |
0 |
20 | |
|
Charge 2 |
2021/1/1 |
2021/1/1 |
15 |
0 |
15 | |
|
Interval 2 |
Charge 1 > Segment 2 |
2022/1/1 |
2022/12/31 |
120 |
-6 |
114 |
|
Interval 3 |
Charge 1 > Segment 3 |
2023/1/1 |
2023/12/31 |
240 |
-12 |
228 |
After combination, the TCV values for Subscription Version 2 are as below:
|
Interval |
Charge |
Start Date |
End Date |
Gross TCV |
Discount TCV |
Net TCV |
|---|---|---|---|---|---|---|
|
Interval 1 |
Charge 1 |
2021/1/1 |
2021/12/31 |
70 |
0 |
70 |
|
Charge 2 |
2021/1/1 |
2021/1/1 |
15 |
0 |
15 | |
|
Interval 2 |
Charge 1 |
2022/1/1 |
2022/12/31 |
120 |
-6 |
114 |
|
Interval 3 |
Charge 1 |
2023/1/1 |
2023/12/31 |
240 |
-12 |
228 |
The TCV in the Ramp Interval Metrics level for Subscription Version 1 is as in the table below. For Charge 1, the two items of TCV for Interval 2 need to be combined.
|
Interval |
Charge Segment |
Start Date |
End Date |
Gross TCV |
Discount TCV |
Net TCV |
|---|---|---|---|---|---|---|
|
Interval 1 |
Charge 1 > Segment 1 |
2021/1/1 |
2021/10/31 |
50 |
0 |
50 |
|
Charge 1 > Segment 2 |
2021/11/1 |
2021/12/31 |
20 |
0 |
20 | |
|
Charge 2 |
2021/1/1 |
2021/1/1 |
15 |
0 |
15 | |
|
Interval 2 |
Charge 1 > Segment 2 |
2022/1/1 |
2022/12/31 |
120 |
-6 |
114 |
|
Interval 3 |
Charge 1 > Segment 2 |
2023/1/1 |
2023/12/31 |
120 |
-6 |
114 |
After combination, the TCV values for Subscription Version 1 are as below:
|
Interval |
Charge |
Start Date |
End Date |
Gross TCV |
Discount TCV |
Net TCV |
|---|---|---|---|---|---|---|
|
Interval 1 |
Charge 1 |
2021/1/1 |
2021/12/31 |
70 |
0 |
70 |
|
Charge 2 |
2021/1/1 |
2021/1/1 |
15 |
0 |
15 | |
|
Interval 2 |
Charge 1 |
2022/1/1 |
2022/12/31 |
120 |
-6 |
114 |
|
Interval 3 |
Charge 1 |
2023/1/1 |
2023/12/31 |
120 |
-6 |
114 |
Step 2 - Compare the combined TCV value for each charge per Ramp Interval between a subscription's current version and the previous version after an Order is created and return the delta TCV value by the formula: Delta = V2 - V1.
Comparing the TCV values in the Subscription Version 1 and 2 as in the table below:
|
Interval |
Charge |
Start Date |
End Date |
Subscription Version |
Gross TCV |
Discount TCV |
Net TCV |
|---|---|---|---|---|---|---|---|
|
Interval 1 |
Charge 1 |
2021/1/1 |
2021/12/31 |
Version 2 |
70 |
0 |
70 |
|
Version 1 |
70 |
0 |
70 | ||||
|
Interval 2 |
Charge 1 |
2022/1/1 |
2022/12/31 |
Version 2 |
120 |
-6 |
114 |
|
Version 1 |
120 |
-6 |
114 | ||||
|
Interval 3 |
Charge 1 |
2023/1/1 |
2023/12/31 |
Version 2 |
240 |
-12 |
228 |
|
Version 1 |
120 |
-6 |
114 | ||||
|
Interval 1 |
Charge 2 |
2021/1/1 |
2021/1/1 |
Version 2 |
15 |
0 |
15 |
|
Version 1 |
15 |
0 |
15 |
As you can see from the table above:
-
Charge 1 has no change in TCV in Interval 1 or Interval 2. Therefore, no Delta TCV metrics will be present for Interval 1 or Interval 2 in Order 2.
-
Charge 1 has TCB changes in Interval 3. Therefore, Delta TCV metrics will be present in Order 2 for Interval 3.
-
Charge 2 has no change in TCV. Therefore, no Delta TCV metrics will be present for Charge 2 in Order 2.
Therefore, the Delta TCB in Order 2 is as in the table below:
|
Interval |
Charge |
Start Date |
End Date |
Delta Gross TCV |
Delta Discount TCV |
Delta Net TCV |
|---|---|---|---|---|---|---|
|
Interval 3 |
Charge 1 |
2023/1/1 |
2023/12/31 |
120 |
-6 |
114 |