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Key Metrics for Orders

Orders metrics represent metrics impact in specific periods introduced by orders. Zuora calculates the key metrics of each charge that is affected by an order action. A single change to the charge in an order action may lead to multiple order metrics for different time periods. You can retrieve the following key metrics from the REST API:

  • Monthly Recurring Revenue (MRR)
  • Total Contract Value (TCV)
  • Total Contract Billing (TCB)
  • Quantity

To retrieve key metrics by order, make a call to the REST GET an Order operation.

Zuora calculates MRR and Quantity for Evergreen subscriptions. You can retrieve a certain period of TCB for Evergreen subscriptions by using the REST GET Order Metrics for Evergreen Subscription operation.

For the termed subscriptions, the metrics are calculated based on the subscription terms and the impact time periods. 

  • Subscription terms: If a subscription is renewed several times, the subscription has multiple terms. The metrics are split based on the terms.
  • Impact time periods: The time periods that are affected by the changes in orders.

For example, a customer subscribes to your product for three months starting on January 1, 2020. Then the customer renews the subscription for another three months. The subscription has two terms. Later your customer wants to change the quantity of the charge starting on February 1, 2020. The impact period for this quantity change is from February 1, 2020 to June 30, 2020. Because the subscription is renewed once, the metrics are split into the two subscription terms. So the key metrics are calculated based on the following two periods:

  • February 1, 2020 - March 31, 2020
  • April 1, 2020 - June 30, 2020

MRR for Orders

Orders MRR represents the monthly revenue for orders. See Monthly Recurring Revenue for more information.

The MRR of a charge that is affected by an order action is the change on the MRR in the impact time periods. See Example of Calculating Orders Metrics below for more information.

For more information about calculating charge-level MRR, see Charge-level MRR.

TCV for Orders

Orders TCV represents the value of one-time and recurring charges in orders. It is the measure of the value a customer has committed to you in orders. 

The TCV of a charge that is affected by an order action is the change on the TCV in the impact time periods. See Example of Calculating Orders Metrics below for more information. 

If there is a proration, the value of TCV depends on the billing rules you set. See Total Contract Value for more information.

TCB for Orders

TCB represents the expected billing result of the charges to be fully billed. Orders TCB is the total invoice amounts that are billed for orders.

The TCB of a charge that is affected by an order action is the change on the TCB in the impact time periods. With the same billing settings of generating invoices for a charge, the charge TCB should be the same with the invoice amount. See Example of Calculating Orders Metrics below for more information. 

If there is a proration, the value of TCB depends on the Billing setting you set. See Proration and Calculating Total Amount with Partial Period Proration for more information.

Quantity for Orders

The quantity of a charge that is affected by an order action is the change on the quantity in the impact time periods. 

For example, your customer subscribes to your recurring charge for a year starting on January 1. The quantity of the charge is 10. Later your customer wants to change the quantity from April 1. You create an Update Product amendment in an order to change the charge quantity to 15. The quantity of the affected charge is 5 for the time period from April 1 to December 31.

Example of Calculating Orders Metrics

The following example shows how to calculate metrics for orders at the charge level.

In an order, your customer subscribes to your recurring charge for a year starting on January 1, 2020:

  • Charge Model: Per Unit Pricing
  • List Price: $10
  • List Price Base: Per Billing Period
  • Billing Period: Month
  • Quantity: 10

The key metrics for the impact time period: January 1, 2020 - December 31, 2020

  • MRR_of_the_affected_charge = 100 (= 100 - 0)
  • TCV_of_the_affected_charge = 1200 (= 1200 - 0)
  • TCB_of_the_affected_charge = 1200 (= 1200 - 0)
  • Quantity_of_the_affected_charge = 10 (= 10 - 0)

Later you create the following Update Product amendments in an order:

  1. Order action 1: Create an Update Product amendment with the following changes:
    • Quantity: 12
    • Amendment Effective Date: February 15, 2020
  2. Order action 2: Create an Update Product amendment with the following changes:
    • Quantity: 15
    • Amendment Effective Date: April 1, 2020

Order action 1:

The key metrics for the impact time period: February 15, 2020 - December 31, 2020

  • MRR_of_the_affected_charge = 20 (= 120 - 100)
  • TCV
    • If you set the billing rule to use actual days in the proration: TCV_of_the_affected_charge = 210.967741935 (= 1265.806451613 - 1054.838709677)
    • If you set the billing rule to use 30 days in a month: TCV_of_the_affected_charge = 211.3333333 (= 1268- 1056.6666666)
  • TCB
    • If you set the billing rule to use actual days in the proration: TCB_of_the_affected_charge = 210 (= 1260 - 1050)
    • If you set the billing rule to use 30 days in a month: TCB_of_the_affected_charge = 209.3333333 (= 1256 - 1046.666667)
  • Quantity_of_the_affected_charge = 2 (= 12 - 10)

Order action 2:

The key metrics for the impact time period: April 1, 2020 - December 31, 2020

  • MRR_of_the_affected_charge = 30 (= 150 - 120)
  • TCV_of_the_affected_charge = 270 (= 1350 - 1080)
  • TCB_of_the_affected_charge = 270 (= 1350 - 1080)
  • Quantity_of_the_affected_charge = 3 (= 15 - 12)
Last modified
17:45, 10 Sep 2017

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