Multi-year deal with price escalation

[BeckaD]

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.

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.

[hamidn · Accepted solution]

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

Regards,

Muhammad | Pixcell.io

[PollyPieCharts]

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?

[BeckaD]

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.

[PollyPieCharts]

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.

[HubDoPete · Accepted solution]

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

[hamidn · Accepted solution]

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

Regards,

Muhammad | Pixcell.io

[BeckaD]

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

[JDijak]

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.

[BeckaD]

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.

[kennedyp]

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

[JDijak]

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

[BeckaD]

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