Multi-year deal with price escalation

Smart CRM & Sales Hub Tips, Tricks & Best Practices
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1

I have a multi-year deal that I am trying to enter with Line Items. The problem is, instead of scheduling out the second year, the MRR and ARR are adding the two years together. I assumed that by adding Billing Start Dates, it would correctly calculate, but that’s not what I am seeing.

MRR Calculations.png
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What am I doing wrong? Or is it not possible to schedule revenue out this way?

We are on Sales Hub Enterprise, if that matters.

2

Thanks for your post @BeckaD!

I’d like to invite some amazing community members to see if they have any relevant experience to share. @HFisher7, @HubDoPete, @Trumeter do y’all have any tips for quoting multi-year revenue?

Best,
Kennedy

3

Any responses from the community on this topic? I find it surprising that HubSpot can’t support a multi-year deal with different prices in years 1-3. Very common scenario that should not require custom properties to solve. Splitting the deal into multiple deals would almost certainly break any out of the box ARR reporting

4

I am hoping that the aquisition of Cacheflow means that a solution is coming soon.

5

Hi @BeckaD,

HubSpot does not allow properties to base their values on dates as they cover the entire record.

One way you can track the dynamic MRR/ARR is through making a custom object reports [Line Items + Deals] with the following configuration:

X-Axis: Deal Name

Y-Axis: MRR Sum

Break down by: Billing Start Date

MuhammadMaan_0-1728646370194.png
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Regards,

Muhammad | Pixcell.io

6

But this breaks all standard reporting. The MMR and ARR are wrong. Hubspot can possibly accept this as a valid solution.

7

Hi @BeckaD I’m curious to hear if you eventually found a solution to this very common problem. I agree with your statement that this can’t possibly be an acceptable solution for a modern Customer Success tool.

8

Nope. I have checked out some light-weight CPQ offerings, but I believe that this should be standard functionality. All the data is right there - start date, term, and price. It’s bonkers to me that Hubspot can’t implement this.

9

Hi Becka,

You will need to solve this using

  • custom reporting as suggested by Muhammad
  • split the multi-year deal into multiple deals, with properties that allow you to identify previous & next deals in the chain and a few other custom properties to give you the combined views that you need.
  • or experiment with rollup calculation properties on the deal to get the year 1, 2, 3 values . Now that calculation properties are not as scarce, this could be a viable use case.

I hope that helps!

best

Pete

10

Urgent Issue: Multi-Year Contract ACV Calculation

Hi there,

I find it extremely concerning that HubSpot has yet to resolve the issue with multi-year contracts where:

  • Year 1 – Discounted
  • Year 2 – No Discount

This directly impacts ACV calculations, which are further affected by currency fluctuations. As a result, this issue also distorts Goal Reports and Quotes, leading to inaccurate financial tracking and decision-making.

Given the importance of accurate revenue reporting, I urge HubSpot to prioritize a resolution for this. Can you provide an update on when we can expect a fix?

Looking forward to your response.

11

Hi @BeckaD, how did you resolve the issue with line items for different years (e.g. Billing Start Dat 2025, 2026, 2027 like in your example) accounting for the total deal value?

12

Still haven’t yet. I am hoping that Hubspot’s new investment in CPQ will mean that features like this will be coming sooner rather than later.

13

Has there been any update to a solution here? This is a huge problem for us and the workarounds are not scalable.