Quote Totals Vs ARR Vs TCC

[eliot_martin]

I am struggling with conflicts between what is shown on a quote and the ARR/TCC values populated on the deal.  Here is the scenario...

I have a service that I want to sell as 3-year subscription, billed on each year so have created the following product...

Name: Widget

Unit Price: £100.00

Start Date: At Payment

Term (months): 36

Billing Frequency: Annually

If I add one of these products as a line item on a deal I get the following expected values...

ARR: £100.00

TCV: £300.00

However, when I create a quote from the deal with this line item the Line Items table shows...

Item: Widget

Qty: 1

Unit Price: £100.00 / year

Total Price: £100 / year for 3 years.

The Subtotals section shows...

Annual subtotal:£100.00 

Total: £100.00

I would have expected the total on the quote to be £300.00, not £100.00.  The customer needs to see what they are paying for 3 years, not 1.

As a solution, I have tried replacing the single line item with 3 individual line items each with a Start Date a year apart.  Whilst this reflects the correct total on the quote it breaks the automatic calculation of ARR in the deal.  

Is this something I am doing wrong or does HubSpot not support my scenario of creating a cogent quote for a service billed over multiple years and calculating ARR correctly?

[courtney_hickey]

Another thing we are running into now that we have multiple products is that customers want to see a roll up of net unit price per user on ARR items (net unit price does not exist as a native field and without calculation properties on line items would require adding a property with manual calculation input). We are having to go to a custom developer now to solve for these needs with the understanding that the topics mentioned on this thread are not currently on the roadmap in favor of Commerce Hub, which unfortunately separates subscriptions from line item functionality. A big almost from our side.

[vanessahunt]

Are there any updates to these discussions, since this is a use case I'm working on right now (May 2023) so would love to know if any of the above findings have been addressed since, please! @velliott 

[JBooth3]

The ability to add the personalised token in the line item section would help imensley then we could call it what we want and choose which field from the quote we want to display... or we may want to display multiple.

Really a Rich text field that you could toggle off and on which could contain text and personalised tokens would be ideal then we can design it how we want it.

[PeterLeclercq]

I agree with the above. 

The total cost on the quote is misleading since it only takes one installment of a quarterly billed product into account. In this case (and in my opinion), the total cost of the quote should be equal to TCV.

[velliott]

Hi all, 

This is great feedback, thank you. The use cases are very helpful as we are currently reviewing how to improve the way totals are calculated and presented on a quote. 

In the meantime, have you tried to add any personalization tokens such as TCV to the quote template? I know it is a workaround but it might be helpful in the near term. Let me know is this helps or not. 

Best,

[courtney_hickey]

Hello, yes I added TCV as a personalization token into the comments section of the quote but there are a couple drawbacks: 1 it is visually unpleasant and not in a place where it is completely clear how the total relates to the below information. 2 the TCV amount does not update if you make changes to the line items in Step 4, so the line items must be correct prior to creating the quote. Sales may forget this (although I have outlined it in our process doc) and we may end up with conflicting totals on the quote.

[eliot_martin]

We are literally changing our business model in order to accommodate this lack of functionality, charging up-front for subscriptions that cover multiple years and adding 1,2, and 3-year specific products to the HubSpot product library.

[courtney_hickey]

@hubspot It would be a major improvement to be able to create a quote template that allows a choice about which total is presented at the bottom of a quote. I have customers who want to see how it is presented now, with ACV as the total but showing a 3 year term; I also have customers who want to pay 3 years up front and have to now tell my reps to do the quote with 3 line items and then go back and change the line items afterward to ensure revenue is captured correctly (or do it myself). Alternatively we could tell the customer to do the math, which is the least desirable option of all. Not a scalable process... Also, if HubSpot would factor the Start Date & Term into the calculation, that would be ideal.