topic Re: Multi-Year Deals different prices wrong Annual Subtotal in Tips, Tricks & Best Practices

Multi-Year Deals different prices wrong Annual Subtotal

Patrick_R — Fri, 09 Oct 2020 06:56:27 GMT

I am looking for a possibility to realise a multi-year deal with different prices per year.

3 Years Contract with the same price

29880 per Year for 36 Months

TCV ist korrekt and I expect in Annual Subtotal 29880

Now, I configure 3 different products for every year and update the start date correctly.

I would expect that my subtotal will be for the first year 19880. TCB ist korrekt but ACV and ARR ist wrong.

(If I order the same product 3 times I have the same effect)
I want to have that ACV and ARR will be 19880 oder maybe a NACV of 24546

Please help me to configure a mult-year contract with different prices and the correct subtotal and the correct amount.

Betreff: Multi-Year Deals different prices wrong Annual Subtotal

JessicaH — Mon, 12 Oct 2020 09:08:48 GMT

Hi @Patrick_R,

Thanks for reaching out.
I want to tag in some thought leaders to see if they can assist with this.
Hi @AM8 @Bryantworks @MAC-MCB, would you be able to share your thoughts on this?

Thanks,
Jess

Re: Multi-Year Deals different prices wrong Annual Subtotal

PMC — Thu, 07 Jan 2021 15:55:24 GMT

@JessicaH

I'm having very similar issues - we started using line items to differentiate between one off fees and ARR but have found it impossible to use for multi-year contracts with different values for each year. Like the previous poster, I expected it to behave in a similar way to calculate the ARR, TCV and ACV but was left very frustrated.

Reporting on this in general in still problematic, but being able to capture multiyear deals is a basic necessity for sales subscriptions. Were any of the colleagues you tagged able to offer any advice or suggestions on this?

Re: Multi-Year Deals different prices wrong Annual Subtotal

LPereira3 — Wed, 03 Mar 2021 17:54:44 GMT

@JessicaH @Patrick_R

We are also experiencing this as well. What is the purpose of adding a term start date if this is not being used in the metric calculations? It should also be able to calculate the contract length based on the term lengths and dates specified, right? And all of this trickles down to the quote line items, by the way.. This functionality is essential for service companies and the metric formulas needs quite a bit of work... In the meantime, I've read some people are creating multiple internal deals for the same customer just to be able to quote and forecast correctly, but this is really not scalable.

Re: Multi-Year Deals different prices wrong Annual Subtotal

LPereira3 — Thu, 04 Mar 2021 19:55:52 GMT

@ethankopit

Hi Ethan,

As the Product Manager for Quotes and the Product Library at HubSpot, I thought you would care to see this. These metrics (TCV, ACV...) are important to our business and I was pleasantly surprised to see them in the product library. However, they are ultimately useless since the calculations don't take into account the start date and term length. The pictures uploaded in this idea explain it perfectly. This is not an improvement idea, these are just wrong calculations. What do you think? Do you think this will be fixed soon? If not, I have to find another solution.

Re: Multi-Year Deals different prices wrong Annual Subtotal

KElder — Mon, 22 Mar 2021 13:37:05 GMT

Wanted to post to mention I reached out to support trying to come up with a workaround for the same thing. I was told I'd need to create multiple deals to represent multiple years. As @LPereira3 mentioned, this isn't scalable. I agree with their second comment about how this tool should factor in the start dates

Re: Multi-Year Deals different prices wrong Annual Subtotal

SBoylan — Thu, 16 Dec 2021 18:10:38 GMT

This is causing me significant pain as well. I cannot understand why the ACV calculation is simply adding the line items and ignoring the dates. This needs fixing and urgently. I am overstating my pipeline enormously on greenfield/growth deals, directly because of this mathematically incorrect handling. Suggestion: introduce a "year 1 ACV" and make the overall deal ACV an average. Both must include time range sensitivity.

Or better yet: build in the actual revenue range into the forecast tool, so that we can filter for only those line items coming up in that year.

also Enterprise customer...

Re: Multi-Year Deals different prices wrong Annual Subtotal

TCraig06 — Mon, 13 Jun 2022 15:52:38 GMT

Posting here because I'm having the same issue. I would like to book a multi-year contract with a price step up on one deal record (each contract = 1 deal record at my firm). If I make the first year product line "One-time" billing frequency, the TCV and ARR I want is calculating correctly. ACV, on the other hand, is not and product line start dates seem to have zero impact on the metric calculatioins.

Agree with @KElder that this is not scalable and we need a resolution.

Re: Multi-Year Deals different prices wrong Annual Subtotal

kvlschaefer — Mon, 13 Jun 2022 18:28:22 GMT

Hi @TCraig06 and everyone on this thread,

Thank you all for for your feedback.

I would highly recommend you to please upvote this related idea in the Ideas Forum and add your feedback in th thread.

Our product team, who monitors the forum regularly, can read your specific use case and understand why this would be a useful functionality or change. It also helps other customers facing the same issue to advocate for its implementation.

Thank you,

Kristen

Re: Multi-Year Deals different prices wrong Annual Subtotal

NEloy-Agres8 — Tue, 14 Mar 2023 12:06:10 GMT

Has there been any progress on this?

Betreff: Multi-Year Deals different prices wrong Annual Subtotal

NEloy-Agres8 — Tue, 14 Mar 2023 12:06:23 GMT

Has there been any progress?

Re: Multi-Year Deals different prices wrong Annual Subtotal

kvlschaefer — Wed, 15 Mar 2023 15:54:58 GMT

Hi @NEloy-Agres8,

Thanks for reaching out!

I would recommend upvoting this idea and commenting on it so you're subscribed to status updates our product team makes to it. This guide to the ideas forum has an overview of idea status updates.

Best,

Kristen

Re: Multi-Year Deals different prices wrong Annual Subtotal

JGarasino — Wed, 19 Apr 2023 15:31:38 GMT

Very interested as well! most of our deals are multi-year so basically the ARR calculation and sales analytics are useless to us. Is there anything in the roadmaps to solve this?

Re: Multi-Year Deals different prices wrong Annual Subtotal

ZoeTrem — Wed, 19 Apr 2023 16:35:02 GMT

Hello ! I have create an idea about Multi Year quotes that correspond to your needs. This is a different idea from kvlschaefer. Here is the link, please go and vote so Hubspot can change the way quotes are done 🤗 : Multiyear Quote

Re: Multi-Year Deals different prices wrong Annual Subtotal

kvlschaefer — Wed, 26 Apr 2023 19:27:01 GMT

Hi @ZoeTrem,

Thanks for sharing your idea!

Upvoted 🙂

Best,

Kristen

Re: Multi-Year Deals different prices wrong Annual Subtotal

LOhaus — Wed, 24 May 2023 00:41:53 GMT

This is causing us significant pain as well. As mentioned above this is not just a request for an update, the calculations that HubSpot is providing are wrong and ultimately useless.

Re: Multi-Year Deals different prices wrong Annual Subtotal

EHilner8 — Wed, 10 Jan 2024 21:00:50 GMT

Absolute must for multi year deals without creating extremely complex and custom solutions

Re: Multi-Year Deals different prices wrong Annual Subtotal

DouglasW — Thu, 11 Jan 2024 19:59:16 GMT

We need this too! I thought maybe entering the line item multiple times with 12 month delayed billing would solve the problem but delayed billing does not seem to impact ACR/ARR. Need to be able to increase the price year over year on a single line item.

Re: Multi-Year Deals different prices wrong Annual Subtotal

LLarson — Thu, 21 Mar 2024 18:39:39 GMT

What you are asking people to upvote isn't for the same issue detailed here. Everyone is stating they'd like better (or correct) control over multi-year deals and how the amounts roll up/are calculated based on different annual prices defined in a single deal.

Re: Multi-Year Deals different prices wrong Annual Subtotal

MElsbernd — Mon, 25 Mar 2024 21:25:32 GMT

HELP!

I am also running into this issue. Was this ever resolved? Here is my dillema, I have a 4% increase on my annual contract price for a customer who signed a 1 year deal.

The problem is that the ARR is really about $10,000-11,000 over 5 years but the way I had to set this up, it looks like the TCV instead of annualized value.

See below: