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.
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 |