Tips, Tricks & Best Practices

SarahOps
Contributor

ACV automatic calculation

SOLVE

Hello,

 

Wondering if anyone can think of a solution to the below problem:

 

I created a custom property to calculate ACV using a formula. The issue I face is that we sometimes have contract durations of less than 12 months. When that is the case, the ACV is not calculated properly. I'm including a screenshot of this scenario below.

 

ThanksScreenshot 2024-05-28 at 11.22.46 AM.png 

1 Accepted solution
Lucila-Andimol
Solution
Thought Leader | Platinum Partner
Thought Leader | Platinum Partner

ACV automatic calculation

SOLVE

In this case you should have a deal per year of contract

to get the proper info in reports and also be able to make this in this property work

because as you mentioned before you are trying to get the Annual Contract value

The other option is to consider recurring revenue (in Enterprise)

Hope this helps

María Lucila Abal | COO Andimol
HubSpot Expert, Community Champion & Certified Trainer (12+ years)

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Lucila-Andimol
Thought Leader | Platinum Partner
Thought Leader | Platinum Partner

ACV automatic calculation

SOLVE

Hey @SarahOps 

I think that fi your TCV is the total cost of the proyect your formula should be TCV/12

this way you always take the TCV to a monthly amount 

Its the same if you do the first 6 months with an X amount and the the other six month at 0 amount.

If the TCV is monthly (like MRR), then your formula should be (TCV*Contract term)/12.

Hope this helps

María Lucila Abal | COO Andimol
HubSpot Expert, Community Champion & Certified Trainer (12+ years)

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SarahOps
Contributor

ACV automatic calculation

SOLVE

Hi @Lucila-Andimol , TCV is the total contract value. Some of our contracts are multi-year so TCV/12 would not work....

Lucila-Andimol
Solution
Thought Leader | Platinum Partner
Thought Leader | Platinum Partner

ACV automatic calculation

SOLVE

In this case you should have a deal per year of contract

to get the proper info in reports and also be able to make this in this property work

because as you mentioned before you are trying to get the Annual Contract value

The other option is to consider recurring revenue (in Enterprise)

Hope this helps

María Lucila Abal | COO Andimol
HubSpot Expert, Community Champion & Certified Trainer (12+ years)

Have questions? Get answers:

Get Premium Support

Did my post help answer your question? Mark this as a solution.

0 Upvotes