Hubspot's Annual Recurring Revenue Not Reflecting Accurately

[TWatkins9]

Hi all,

We are newer to using line items, and we are running into an issue when setting up multi-year deals.

For the deal below, we added two line items, one to start this year on 6/30/2023, and another to start on 6/30/2024 (so two line items, billed yearly consecutively.

The price increases from 55,000 in the first year to 75,000 in the second year.

Currently, the ARR/MRR are reflecting both line items combined (so two years into one).

How do we fix this? What is best practice?

[KG247]

We are having the same issue, only that we have an increase in price after 6 months. A solution would be a separate Deal with the difference of both values as an ARR and having it start after 6 months, but that just can't be how it is supposed to be.

[Welho]

Struggling with the same issue. For multi-year deals with different discounts per year one is forced to use separate Line Items with different start dates, however this throws off the ARR and MRR calculations as it doesn't take into account the start dates and term lengths of the individual Line Items. Instead it adds up all individual line item's ARRs and sums them up as the total ARR of the deal, which makes no sense at all!

All it would take to fix the problem is that the deal level ARR/MRR calculations would be based of actual Start- and End dates of the Line items.

[EwaWard]

Hi @TWatkins9,

Looking at your screenshot, I cannot see anything wrong with data you have entered, therefore my next step would be to contact HubSpot Technical Support to check for any bugs or issues in the system.

Best to contact them via your portal and then clicking the blue "Help" speech cloud that should pop up in your right bottom corner, then choose "Contact support". Fingers crossed they can help!