When you renew a subscription to generate a new term, the segment-split by term behavior changes because of OTR enablement. Let’s understand how the segment-split by term behavior changes before and after you enable OTR.

Before you enable OTR, when a subscription is renewed to generate a new term, the charge will be extended to the same Segment for existing billing customers. The TCV is calculated for the two terms at $200 in this case.

After you enable OTR, when a subscription is renewed to generate a new term, the charge will be split to a different segment. As there will be two sales order lines from a revenue recognition perspective, the CCV will be calculated for each charge segment. In this scenario, it is split into two charge segments:

• Charge segment 1 $100, and

• Charge segment 2 $100

The behavior impacts the following:

• The recurring charges

• The usage charges

• Auto renew, renew to evergreen, renew order action