We are currently selling some 6 months contracts that have high chances to be renewed after 6 months.
For business planning purpose, I’d like to convert the 6 months value into 12M ARR value so I can have a vision on the potential of my business.
Problem is : when I put the term to 6 months in my line items, then the ARR value that is displayed isn’t multiplied by 2. Exemple below :
I sell a 20k subscription for 6 months, the ARR value should be 40k, but Hubspot isn’t showing it, it’s kept on 20K. Screenshot below
Hi @PCabannes! It looks like this is due to your Term length. The line item term is 6 months, so it wouldn’t even last long enough to happen semi-annually. As @Gaurav_Aggarwal mentioned in the Knowledge Base article resources, the term is assumed at 12 months (one year) so if your goal is to charge them semi-annually (ie every 6 months) then you can leave the term blank and select semi-annually for the frequency. Check out my examples below:
Hi I am just cursious about the handeling of this as I question it on our own instnace. We have a 6 month deal with a value of say $100. If it had a high likelyhoof of renewing we would say the ARR is $200 but the TCV would still only be $100 since that is what is actually contracted. Following this process the TCV also goes to $200 which I dont think is correct. The Annual Recorring revenue would be 200 but the total contracted value would be 100 in this case no?
Hey, @NMagee Thanks for your question. You may get more views and replies if you create a new post, include the same details (thanks for that!), and add a screenshot or two if applicable. You didn’t do anything wrong, and I want to make sure your question gets the attention it deserves. — Jaycee
Thanks for your question. You may get more views and replies if you create a new post, include the same details (thanks for that!), and add a screenshot or two if applicable. You didn’t do anything wrong, and I want to make sure your question gets the attention it deserves. — Jaycee