Contract Value Calculation
Contract values are calculated based on the Renewals License Pricing Model that you selected on the Contract Renewals Preferences page. For more information, see Setting Up Contract Renewals Preferences.
This section shows how contract values are calculated for each pricing model:
The following variables are used to calculate the contract value:
|
Variable |
Description |
|---|---|
|
annualTerm |
Refers to the contract term. A value of 12 is used when the term type is annual, otherwise a value of 1 is used. |
|
ciTerm |
Refers to the contract item term. A value of 1 is used when there is no term defined, otherwise the value of the original contract item term is used. |
|
contractRenewalTerms |
Refers to the new term of the contract (in months) when it is renewed. |
|
contractLR |
Refers to the current item list rate based on the contract price level. |
|
currentLR |
Refers to the current item list rate based on the base price on the item record. |
|
customerLR |
Refers to the current item list rate based on the customer price level. |
|
origLR |
Refers to the original item list rate from the transaction. |
|
origDC |
Refers to the original discount. |
|
qty |
Refers to the quantity of the contract items. |
Historical License List Rate -From Tran Line
This pricing model calculates the contract value based on the price level and list rate specified on the contract’s source transaction.
For information about the contract value fields on a contract record, see Contract Fields.
|
Field |
Formula |
|---|---|
|
Contract Value (Customer Primary Curr) |
|
|
Contract Value (Base Curr) |
|
|
Annual Contract Value (Gross) |
|
|
Annual Contract Value (Net) |
|
|
Annual Renewal Value (Gross) |
|
|
Annual Renewal Value (Net) |
|
|
Renewal Term Renew Value (Gross) |
|
|
Renewal Term Renew Value (Net) |
|
Even if a renewal item is different from the original item, this pricing model will still use the list rate of the original item in the source transaction.
Current License List Rate -Price Level on Customer Record
This pricing model calculates the contract value based on the price level set on the customer record and its corresponding price specified on the item record. If there is no price level specified on the customer record, the base price on the item record is used to calculate the contract value.
For information about the contract value fields on a contract record, see Contract Fields.
|
Field |
Has a Customer Price Level |
Annual Term |
Formula |
|---|---|---|---|
|
Contract Value (Customer Primary Curr) |
No |
Yes |
|
|
No |
No |
|
|
|
Yes |
Yes |
|
|
|
Yes |
No |
|
|
|
— |
— |
Note:
This formula is used when the Multiple Currencies feature is enabled. |
|
|
Contract Value (Base Curr) |
No |
Yes |
|
|
No |
No |
|
|
|
Yes |
Yes |
|
|
|
Yes |
No |
|
|
|
Annual Contract Value (Gross) |
No |
Yes |
|
|
No |
No |
|
|
|
Yes |
Yes |
|
|
|
Yes |
No |
|
|
|
Annual Contract Value (Net) |
No |
Yes |
|
|
No |
No |
|
|
|
Yes |
Yes |
|
|
|
Yes |
No |
|
|
|
Annual Renewal Value (Gross) |
— |
— |
|
|
Annual Renewal Value (Net) |
— |
— |
|
|
Renewal Term Renew Value (Gross) |
— |
— |
|
|
Renewal Term Renew Value (Net) |
— |
— |
|
Current License List Rate -Price Level on Contract
This pricing model calculates the contract value based on the price level set on the contract’s source transaction and its corresponding price specified on the item record. If a custom price level is specified on the source transaction (that is, contract price level is blank), the base price on the item record is used to calculate the contract value.
For information about the contract value fields on a contract record, see Contract Fields.
|
Field |
Has a Contract Price Level |
Annual Term |
Formula |
|---|---|---|---|
|
Contract Value (Customer Primary Curr) |
No |
Yes |
|
|
No |
No |
|
|
|
Yes |
No |
|
|
|
— |
— |
Note:
This formula is used when the Multiple Currencies feature is enabled. |
|
|
Contract Value (Base Curr) |
No |
Yes |
|
|
No |
No |
|
|
|
Yes |
No |
|
|
|
Annual Contract Value (Gross) |
No |
Yes |
|
|
No |
No |
|
|
|
Yes |
No |
|
|
|
Annual Contract Value (Net) |
No |
Yes |
|
|
No |
No |
|
|
|
Yes |
No |
|
|
|
Annual Renewal Value (Gross) |
— |
— |
|
|
Annual Renewal Value (Net) |
— |
— |
|
|
Renewal Term Renew Value (Gross) |
— |
— |
|
|
Renewal Term Renew Value (Net) |
— |
— |
|
Current License List Rate -Price Level on Contract with Custom Price Handling
This pricing model calculates the contract value based on the price level set on the contract’s source transaction and its corresponding price specified on the item record, with the option to set a custom price on the source transaction. If a custom price level is specified on the source transaction (that is, contract price level is blank), the original list rate specified on the source transaction is used to calculate the contract value.
When a custom price is set on the contract and the Renew With item is the same as the original item, the renewal contract uses the custom price for the item on the source transaction. If the Renew With item is different, the renewal contract uses the base price of the renewal item.
For information about the contract value fields on a contract record, see Contract Fields.
The computation is the same for annual or non annual contract terms.
|
Field |
Has a Contract Price Level |
Formula |
|---|---|---|
|
Contract Value (Customer Primary Curr) |
No |
|
|
Yes |
|
|
|
— |
Note:
This formula is used when the Multiple Currencies feature is enabled. |
|
|
Contract Value (Base Curr) |
No |
|
|
Yes |
|
|
|
Annual Contract Value (Gross) |
No |
|
|
Yes |
|
|
|
Annual Contract Value (Net) |
No |
|
|
Yes |
|
|
|
Annual Renewal Value (Gross) |
— |
|
|
Annual Renewal Value (Net) |
— |
|
|
Renewal Term Renew Value (Gross) |
— |
|
|
Renewal Term Renew Value (Net) |
— |
|