Our company recently encountered problems creating line items to reflect TCV, ACV, MRR, and billing accurately. Our client is signing a 3-year contract and wants to pay upfront. We want this to reflect in the revenue booking for dashboard review and an easy understanding for the client on the quote (generated via Hubspot) but also for our accounting team to understand how to collect and bill this deal. The problem that exists is if you choose the billing frequency as 3 years and the term as 36 months the system reduces the booking to a 1-year deal for TCV, ACV, and MRR. To make the calculation accurate we have to change the billing frequency to annual. The problem here is this is telling the accounting team that billing will recur every year for the length of the term. The Billing Frequency, Terms, Quantity factor, and Unit Price are not aligned correctly based on logic (for me). I hope they can make an adjustment here to allow for proper reporting, quoting, and billing.
...read more