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Key Metrics for Ramps

Zuora

Key Metrics for Ramps

This article introduces Ramps Metrics. 

A Ramp is a time container to associate with rate plan charges in your subscription. Inside the Ramp, you can further define a set of Ramp Intervals (time-based periods) where products or pricing can change. These periods are sub time containers to enable you to report out-of-the-box metrics based on Ramp Intervals. See the Ramps object model in Orders Object Model.

When a subscription with ramp deal is created, you can get the following Ramp metrics:

  • TCB, TCV at the Ramp level

    Add up the corresponding metrics in the Ramp Interval level. For example, if a ramp deal is three years, then you will see the TCB and TCV for the entire three years.

  • TCB, TCV at the Ramp Interval level

    Add up the corresponding metrics in Ramp Interval Metrics. For example, if a ramp deal is three years, then you will see the TCB and TCV for each year.

  • TCB, TCV, Quantity, and MRR in Ramp Interval Metrics

    The lowest level of granularity for metrics in a Ramp. See the table below for more information.

  • Delta TCB, Delta TCV, Delta Quantity, and Delta MRR in Ramp Interval Delta Metrics

    The delta value in the metrics for a charge between a subscription's current version and the previous version per Ramp Interval when an Order is created. See the table below for more information.

See the descriptions for these metrics in the table below:

Metrics level Corresponding Ramp Metrics  Metrics Description
Ramp TCB (Gross, Net, and Discount)

TCB in the Ramp level. One for each subscription per Order.

Sum of all the TCB values in the Ramp Interval level.

TCV (Gross, Net, and Discount)

TCV in the Ramp level. One for each subscription per Order.

Sum of all the TCV values in the Ramp Interval level.

Ramp Interval  TCB (Gross, Net, and Discount)

TCB in the Ramp Interval level. One TCB value for each Ramp Interval.

Sum of all the TCB values in the Ramp Interval Metrics level that are in the time period of a Ramp Interval, including all the charges that are associated with the Ramp.

TCV (Gross, Net, and Discount)

TCV in the Ramp Interval level. One TCV value for each Ramp Interval.

Sum of the TCV values in the Ramp Interval Metrics level, including all the charges that are associated with the Ramp.

Ramp Interval Metrics TCB (Gross, Net, and Discount)

The lowest level of granularity for TCB in Ramp Metrics.

One for each charge segment in the time range of a Ramp Interval. See Segmented rate plan charges for more information about charge segments.

See the calculation logic and example in TCB in Ramp Interval Metrics.

TCV (Gross, Net, and Discount)

The lowest level of granularity for TCV in the Ramp Metrics.

One for each charge segment in the time range of a Ramp Interval. See Segmented rate plan charges for more information about charge segments.

See the calculation logic and example in TCV in Ramp Interval Metrics.

Quantity

The quantity of a rate plan charge of the Per Unit Pricing charge model. 

One for each charge segment in the time period of a Ramp Interval. See Segmented rate plan charges for more information about charge segments.

See the calculation logic and example in Quantity in Ramp Interval Metrics.

MRR (Gross, Net, and Discount)

The lowest level of granularity for MRR in Ramp Metrics.

One for each charge segment or each charge period in which the charge's net pricing remains constant in the time range of a Ramp Interval. This is because a charge segment can be further segmented into several charge periods as a result of the discount application. See Charge-level Net MRR for more information about charge periods. See Segmented rate plan charges for more information about charge segments.

See the calculation logic and example in MRR in Ramp Interval Metrics.

Ramp Interval Delta Metrics Delta TCB (Gross, Net, and Discount)

The delta value in the TCB amount of a charge between a subscription's current version and the previous version when an Order is created.

One for each charge per Ramp Interval. Not present if there is no TCB value change for a charge between a subscription's current version and the previous version.

See the calculation logic and example in Delta TCB in Ramp Interval Delta Metrics.

Delta TCV (Gross, Net, and Discount)

The delta value in the TCV amount of a charge between a subscription's current version and the previous version when an Order is created.

One for each charge per Ramp Interval. Not present if there is no TCV value change for a charge between a subscription's current version and the previous version.

See the calculation logic and example in Delta TCV in Ramp Interval Delta Metrics.

Delta Quantity 

The delta value in the Quantity amount of a charge between a subscription's current version and the previous version when an Order is created.

One for each time period in which the quantity remains constant. The time period should fall into the time range of the corresponding Ramp Interval.

Not present if there is no quantity change in the period.

See the calculation logic and example in Delta Quantity in Ramp Interval Delta Metrics.

Delta MRR (Gross, Net, and Discount)

The delta value in the MRR value of a charge between a subscription's current version and the previous version when an Order is created.

One for each charge period in which the charge's net pricing remains constant. The period should fall into the time range of the corresponding Ramp Interval. 

Not present if there is no price change in the period.

See the calculation logic and example in Delta MRR in Ramp Interval Delta Metrics.

 

The following section introduces how Zuora calculates the metrics in a Ramp. 

MRR in Ramp Interval Metrics

Zuora calculates the MRR in Ramp Interval Metrics by the following steps: 

  1. Calculate the MRR for each charge segment or each charge period in which the net pricing of the charge remains constant. The calculation logic is the same as the MRR metrics in Zuora Billing. See Charge-level Net MRR for more information. 
  2. Map the MRR of each charge segment (or charge period) to a specific Ramp Interval according to whether the time range of charge period falls into the time range of the Ramp Interval.
  3. If the time range of a charge segment ( or charge period) spans over multiple Ramp Intervals, this charge period will be further segmented and then mapped to the corresponding Ramp Interval.   

See the following example.

Example subscription:

Suppose your customer has a 3-year termed subscription from 2021/01/01 to 2023/12/31. A Ramp with three Ramp Intervals is configured for this subscription with each year being a Ramp Interval. The subscription is created by Order 1 with two regular charges and one discount charge as below:

  • Charge 1: a monthly recurring regular charge of the Flat Fee charge model, $5/month from 2021/01/01 to 2021/10/31, $10/month from 2021/11/01 to 2023/12/31.
  • Charge 2: a quarterly recurring regular charge of the Flat Fee charge model, $75/quarter for the entire term.
  • Charge 3: a recurring discount percentage charge, 10%, from 2022/07/01 to 2023/06/30. This discount charge is configured to be applicable only to Charge 1.

Both charge 1 and charge 2 are associated with the Ramp. Then the subscription is amended by Order 2 with the price of Charge 1 updated to $20/month from 2023/01/01 to the term end date. This subscription now has two versions. Version 1 is created by Order 1 and Version 2 is created by Order 2.

The following example shows the MRR metrics calculation for Subscription Version 1 created by Order 1.

Step 1 - For each charge in the subscription, calculate the MRR for each charge period during which the charge's net pricing remains constant.

In Subscription Version 1, the MRR values of Charge 1 and Charge 2 are illustrated in the following diagram. See Monthly Recurring Revenue for more information about how MRR is calculated for a charge.

Ramp metrics- MRR in Order 1.jpeg

Step 2 - Map the MRR of each charge segment (or charge period) to a specific Ramp Interval, as in the table below. Each row in the table represents a charge segment or charge period.

Interval Charge Start Date End Date Gross MRR Discount MRR Net MRR
Interval 1 Charge 1 2021/1/1  2021/10/31 5 0 5
This charge period spans over Interval 1 and Interval 2. Charge 1 2021/11/1 2022/6/30 10 0 10
This charge period spans over Interval 2 and Interval 3. Charge 1 2022/7/1 2023/6/30 10 -1 9
Interval 3 Charge 1 2023/7/1 2023/12/31 10 0 10
This charge period spans over Interval 1, Interval 2, and Interval 3. Charge 2 2021/1/1  2023/12/31 25 0 25

Step 3 - For those charge periods that span over multiple Ramp Intervals, split them into sub periods, and then map the sub periods into the corresponding Ramp Intervals. In this example, Charge 1 has the charge period from 2021/11/1 to 2022/6/30 and the charge period from 2022/7/1 to 2023/6/30 to split. Charge 2 has the charge period from 2021/1/1 to 2023/12/31 to split. See the table below.

Interval Charge Start Date End Date Gross MRR Discount MRR Net MRR
Interval 1 Charge 1 2021/1/1  2021/10/31 5 0 5
Interval 1 Charge 1 2021/11/1 2021/12/31 10 0 10
Interval 2 Charge 1 2022/1/1 2022/6/30 10 0 10
Interval 2 Charge 1 2022/7/1 2022/12/31 10 -1 9
Interval 3 Charge 1 2023/1/1 2023/6/30 10 -1 9
Interval 3 Charge 1 2023/7/1 2023/12/31 10 0 10
Interval 1 Charge 2 2021/1/1  2021/12/31 25 0 25
Interval 2 Charge 2 2022/1/1 2022/12/31 25 0 25
Interval 3 Charge 2 2023/1/1 2023/12/31 25 0 25

 The final result for the MRR in the Ramp Interval Metrics level for Interval 1, Interval 2, and Interval 3 in Order 1 for Subscription Version 1 is shown in the table below:

Order Interval Charge Start Date End Date Gross MRR Discount MRR Net MRR
Order 1 Interval 1 Charge 1 2021/1/1  2021/10/31 5 0 5
Charge 1 2021/11/1 2021/12/31 10 0 10
Charge 2 2021/1/1  2021/12/31 25 0 25
Interval 2 Charge 1 2022/1/1 2022/6/30 10 0 10
Charge 1 2022/7/1 2022/12/31 10 -1 9
Charge 2 2022/1/1 2022/12/31 25 0 25
Interval 3 Charge 1 2023/1/1 2023/6/30 10 -1 9
Charge 1 2023/7/1 2023/12/31 10 0 10
Charge 2 2023/1/1 2023/12/31 25 0 25

Delta MRR in Ramp Interval Delta Metrics

Delta MRR is the delta value in the MRR value of a charge between a subscription's current version and the previous version when an Order is created. See the following example.

Example:

In this example, we continue to use the same sample subscription above as in MRR in Ramp Interval Metrics and show the Delta MRR metrics calculation in Order 2. Order 2 creates Subscription Version 2 based on Subscription Version 1.

The MRR metrics of Charge 1 and Charge 2 in Subscription Version 2 are illustrated in the following diagram:

Ramp metrics- MRR in Order 2.jpeg

Comparing the MRR values in Subscription Version 2 with that of Version 1 as in MRR in Ramp Interval Metrics, you can see:

  • Charge 2 has no change in MRR in Interval 1, Interval 2, an Interval 3. Therefore, no Delta MRR metrics will be present for Charge 2 in Order 2.
  • Charge 1 has no change in MRR in Interval 1 and Interval 2. Therefore, no Delta MRR metrics will be present in Interval 1 and Interval 2 for Charge 1 in Order 2.
  • Charge 1 has MRR changes in Interval 3. Therefore, Delta MRR metrics will be present in Order 2 for Charge 1 in Interval 3.

The table below compares the MRR values for Charge 1 in Interval 3 between Subscription Version 1 and Version 2:

Subscription Version Interval Charge Start Date End Date Gross MRR Discount MRR Net MRR
Version 1 Interval 3 Charge 1 2023/1/1 2023/6/30 10 -1 9
Charge 1 2023/7/1 2023/12/31 10 0 10
Version 2 Interval 3 Charge 1 2023/1/1 2023/6/30 20 -2 18
Charge 1 2023/7/1 2023/12/31 20 0 20

Therefore, you can access the following sets of Delta MRR metrics in Ramp Interval Delta Metrics in Order 2:

Order Interval Charge Start Date End Date Delta Gross MRR Delta Discount MRR Delta Net MRR
Order 2 Interval 3 Charge 1 2023/1/1 2023/6/30 20-10=10 (-2)-(-1)=-1 18-9=9
2023/7/1 2023/12/31 20-10=10 0-0=0 20-10=10

TCV in Ramp Interval Metrics

Zuora calculates the TCV in Ramp Interval Metrics by the following steps: 

  1. Calculate the TCV for each charge segment or each charge period in which the net pricing of the charge remains constant. The calculation logic is the same as the TCV metrics in Zuora Billing. See Total Contract Value. See Charge-level Net MRR for more information about charge segments and charge periods.
  2. Map the TCV of each charge segment (or charge period) to a specific Ramp Interval according to whether the time range of charge period falls into the time range of the Ramp Interval.
  3. If the time range of a charge segment (or charge period) spans over multiple Ramp Intervals, the TCV of this charge segment ( or charge period) will be further segmented and then mapped to the corresponding Ramp Interval. The amount distribution is based on the time length ratio of the overlap period to the charge segment (or charge period).
  4. Group the TCV amounts and segmented TCV amounts by charge segments for each Ramp Interval. Return the added up value per charge segment per Interval as the TCV in the Ramp Interval Metrics. See Segmented rate plan charges for more information about charge segments.

See the following example.

Example subscription:

Suppose your customer has a 3-year termed subscription from 2021/01/01 to 2023/12/31. A Ramp with three Ramp Intervals is configured for this subscription with each year being a Ramp Interval. The subscription is created by Order 1 with two regular charges and one discount charge as below:

  • Charge 1: a monthly recurring regular charge of the Flat Fee charge model, $5/month from 2021/01/01 to 2021/10/31, $10/month from 2021/11/01 to 2023/12/31.
  • Charge 2: a one-time regular charge of the Flat Fee charge model, $15 on 2021/01/01.
  • Charge 3: a recurring discount percentage charge, 10%, from 2022/07/01 to 2023/06/30. This discount charge is configured to be applicable only to Charge 1.

Both charge 1 and charge 2 are associated with the Ramp. Then the subscription is amended by Order 2 with the price of Charge 1 updated to $20/month from 2023/01/01 to the term end date. This subscription now has two versions. Version 1 is created by Order 1 and Version 2 is created by Order 2.

Example 1:

The following example describes the TCV metrics calculation for Subscription Version 1 created by Order 1.

Step 1 - For each charge in the subscription, calculate the TCV for each charge segment (or charge period) during which the charge's net pricing remains constant.

In Subscription Version 1, the TCV values of Charge 1 and Charge 2 are illustrated in the following diagram. See Total Contract Value for more information about how TCV is calculated for a charge.

Ramp metrics- TCV in Order 1.jpeg

Step 2 - Map the TCV of each charge segment (or charge period) to a specific Ramp Interval, as in the table below. Each row in the table represents a charge segment or charge period.

Interval Charge Start Date End Date Gross TCV Discount TCV Net TCV
Interval 1 Charge 1 2021/1/1  2021/10/31 50 0 50
This charge period spans over Interval 1 and Interval 2. Charge 1 2021/11/1 2022/6/30 80 0 80
This charge period spans over Interval 2 and Interval 3. Charge 1 2022/7/1 2023/6/30 10*12=120 (-1)*12=(-12) 120+(-12)=108
Interval 3 Charge 1 2023/7/1 2023/12/31 60 0 60
Interval 1 Charge 2 2021/1/1  2021/1/1  15 0 15

Step 3 - For those charge periods that span over multiple Ramp Intervals, split them into sub periods, and then map the sub periods into the corresponding Ramp Intervals. In this example, Charge 1 has the charge period from 2021/11/1 to 2022/6/30 and the charge period from 2022/7/1 to 2023/6/30 to split. See the table below.

Interval Charge Start Date End Date Ratio of Overlap Period Gross TCV Discount TCV Net TCV
Interval 1 Charge 1 2021/1/1  2021/10/31 1 50 0 50
Interval 1 Charge 1  2021/11/1 2021/12/31 2/(2+6) 80*2/(2+6)=20 0 20
Interval 2 Charge 1 2022/1/1 2022/6/30 6/(2+6) 80*6/(2+6)=60 0 60
Interval 2 Charge 1  2022/7/1 2022/12/31 6/12 120*6/12=60 (-12)*6/12=(-6) 54
Interval 3 Charge 1  2023/1/1 2023/6/30 6/12 120*6/12=60 (-12)*6/12=(-6) 54
Interval 3 Charge 1 2023/7/1 2023/12/31 1 60 0 60
Interval 1 Charge 2 2021/1/1  2021/1/1 1 15 0 15

Step 4 - Group the distributed rating result amounts per charge segment for each Ramp Interval, as in the table below. In this example, Charge 1 (the recurring charge) has two charge segments: Charge Segment 1 from 2021/1/1 to 2021/10/31 and Charge Segment 2 from 2021/11/1 to 2023/12/31. Charge 2 (the one-time charge) has only one charge segment. See Segmented rate plan charges for more information about charge segments. 

Interval Charge Segment Start Date End Date Gross TCV Discount TCV Net TCV
Interval 1 Charge 1 > Segment 1 2021/1/1  2021/10/31 50 0 5
Interval 1 Charge 1 > Segment 2 2021/11/1 2021/12/31 20 0 20
Interval 2 Charge 1 > Segment 2 2022/1/1 2022/6/30 60 0 60
Charge 1 > Segment 2 2022/7/1 2022/12/31 60 -6 54
Interval 3 Charge 1 > Segment 2 2023/1/1 2023/6/30 60 -6 54
Charge 1 > Segment 2 2023/7/1 2023/12/31 60 0 60
Interval 1 Charge 2 has only one charge segment. 2021/1/1  2021/1/1 15 0 15

Return the added up value per charge segment per Interval as the TCV in the Ramp Interval Metrics. In this example, the final result returned as the TCV in the Ramp Interval Metrics level is as below:

Order Interval Charge Segment Start Date End Date Gross TCV Discount TCV Net TCV
Order 1 Interval 1 Charge 1 > Segment 1 2021/1/1  2021/10/31 50 0 50
Charge 1 > Segment 2 2021/11/1 2021/12/31 20 0 20
Charge 2 2021/1/1  2021/1/1 15 0 15
Interval 2 Charge 1 > Segment 2 2022/1/1 2022/12/31 60+60=120 0+(-6)=(-6) 60+54=114
Interval 3 Charge 1 > Segment 2 2023/1/1 2023/12/31 60+60=120 (-6)+0=(-6) 54+60=114

Example 2:

The following example shows the TCV in Ramp Interval Metrics for Subscription Version 2 created by Order 2 in the sample subscription. The subscription is amended by Order 2 with the price of Charge 1 updated to $20/month from 2023/01/01 to the term end date. The calculation steps are skipped as the calculation logic is the same as that of Example 1. 

The TCV metrics of Charge 1 and Charge 2 in Order 2 are illustrated in the following diagram. 

Ramp metrics- TCV in Order 2.jpeg

The TCV in the Ramp Interval Metrics for Charge 1 and Charge 2 in Order 2 is as in the following table. In this example, Charge 1 (the recurring charge) has three charge segments: Charge Segment 1 from 2021/1/1 to 2021/10/31, Charge Segment 2 from 2021/11/1 to 2022/12/31, and Charge Segment 3 from 2023/1/1 to 2023/12/31. Charge 2 (the one-time charge) has only one charge segment. See Segmented rate plan charges for more information about charge segments. 

Order Interval Charge Segment Start Date End Date Gross TCV Discount TCV Net TCV
Order 2 Interval 1 Charge 1 > Segment 1 2021/1/1  2021/10/31 50 0 50
Charge 1 > Segment 2 2021/11/1 2021/12/31 20 0 20
Charge 2 2021/1/1  2021/1/1 15 0 15
Interval 2 Charge 1 > Segment 2 2022/1/1 2022/12/31 60+60=120 0+(-6)=(-6) 60+54=114
Interval 3 Charge 1 > Segment 3 2023/1/1 2023/12/31 120+120=240 (-12)+0=(-12) 108+120=228

Delta TCV in Ramp Interval Delta Metrics

Delta TCV is the delta value in the sum total of a single charge's Ramp Interval Metrics level TCV metrics for a Ramp Interval (between a subscription's current version and the previous version when an Order is created). 

Zuora calculates the Delta TCV in Ramp Interval Delta Metrics by the following steps:

  1. Combine the TCV in the Ramp Interval Metrics level for each charge per Ramp Interval.
  2. Compare the combined TCV value for each charge per Ramp Interval between a subscription's current version and the previous version when an Order is created and return the delta TCV value for each charge per Ramp Interval.

Example:

In this example, we continue to use the same sample subscription above as in TCV in Ramp Interval Metrics and show the Delta TCV metrics calculation in Order 2. Order 2 creates Subscription Version 2 based on Subscription Version 1.

Step 1 - Combine the TCV in the Ramp Interval Metrics level for each charge per Ramp Interval.

The TCV in the Ramp Interval Metrics level for Subscription Version 2 is as in the table below. For Charge 1, the two items of TCV for Interval 2 need to be combined.

Interval Charge Segment Start Date End Date Gross TCV Discount TCV Net TCV
Interval 1 Charge 1 > Segment 1 2021/1/1  2021/10/31 50 0 50
Charge 1 > Segment 2 2021/11/1 2021/12/31 20 0 20
Charge 2 2021/1/1  2021/1/1 15 0 15
Interval 2 Charge 1 > Segment 2 2022/1/1 2022/12/31 120 -6 114
Interval 3 Charge 1 > Segment 3 2023/1/1 2023/12/31 240 -12 228

After combination, the TCV values for Subscription Version 2 are as below:

Interval Charge Start Date End Date Gross TCV Discount TCV Net TCV
Interval 1 Charge 1 2021/1/1  2021/12/31 70 0 70
Charge 2 2021/1/1  2021/1/1 15 0 15
Interval 2 Charge 1 2022/1/1 2022/12/31 120 -6 114
Interval 3 Charge 1 2023/1/1 2023/12/31 240 -12 228

The TCV in the Ramp Interval Metrics level for Subscription Version 1 is as in the table below. For Charge 1, the two items of TCV for Interval 2 need to be combined.

Interval Charge Segment Start Date End Date Gross TCV Discount TCV Net TCV
Interval 1 Charge 1 > Segment 1 2021/1/1  2021/10/31 50 0 50
Charge 1 > Segment 2 2021/11/1 2021/12/31 20 0 20
Charge 2 2021/1/1  2021/1/1 15 0 15
Interval 2 Charge 1 > Segment 2 2022/1/1 2022/12/31 120 -6 114
Interval 3 Charge 1 > Segment 2 2023/1/1 2023/12/31 120 -6 114

After combination, the TCV values for Subscription Version 1 are as below:

Interval Charge Start Date End Date Gross TCV Discount TCV Net TCV
Interval 1 Charge 1 2021/1/1  2021/12/31 70 0 70
Charge 2 2021/1/1  2021/1/1 15 0 15
Interval 2 Charge 1 2022/1/1 2022/12/31 120 -6 114
Interval 3 Charge 1 2023/1/1 2023/12/31 120 -6 114

Step 2 - Compare the combined TCV value for each charge per Ramp Interval between a subscription's current version and the previous version after an Order is created and return the delta TCV value by the formula: Delta = V2 - V1.

Comparing the TCV values in the Subscription Version 1 and 2 as in the table below:

Interval Charge Start Date End Date Subscription Version Gross TCV Discount TCV Net TCV
Interval 1 Charge 1 2021/1/1 2021/12/31 Version 2 70 0 70
Version 1 70 0 70
Interval 2 Charge 1 2022/1/1 2022/12/31 Version 2 120 -6 114
Version 1 120 -6 114
Interval 3 Charge 1 2023/1/1 2023/12/31 Version 2 240 -12 228
Version 1 120 -6 114
Interval 1 Charge 2  2021/1/1 2021/1/1 Version 2 15 0 15
Version 1 15 0 15

As you can see from the table above:

  • Charge 1 has no change in TCV in Interval 1 or Interval 2. Therefore, no Delta TCV metrics will be present for Interval 1 or Interval 2 in Order 2.
  • Charge 1 has TCB changes in Interval 3. Therefore, Delta TCV metrics will be present in Order 2 for Interval 3.
  • Charge 2 has no change in TCV. Therefore, no Delta TCV metrics will be present for Charge 2 in Order 2.

Therefore, the Delta TCB in Order 2 is as in the table below:

Interval Charge Start Date End Date Delta Gross TCV Delta Discount TCV Delta Net TCV
Interval 3 Charge 1 2023/1/1 2023/12/31 120 -6 114

TCB in Ramp Interval Metrics

Zuora calculates the TCB in Ramp Interval Metrics by the following steps:

  1. Zuora's TCB calculation engine uses the same rating rule as that of the Zuora's rating and billing engine (RBE) to generate rating results. See Define Billing RulesProcessing Discount Charges, and Proration for more information about Zuora's rating rule.
  2. Map each rating result to a specific Ramp Interval according to whether the time period of the rating result falls into the time period of the Ramp Interval.
  3. If the time period of a rating result spans over multiple Ramp Intervals, this rating result will be further segmented and then mapped to the corresponding Ramp Interval. The rating result amount distribution is based on the time length ratio of the overlap period to the rating result length period.
  4. Group the rating results and segmented rating results by charge segments for each Ramp Interval. Return the added up value per charge segment per Interval as the TCB in the Ramp Interval Metrics. See Segmented rate plan charges for more information about charge segments.

See the following example.

Example subscription:

Suppose your customer has a 3-year termed subscription from 2021/01/01 to 2023/12/31. A Ramp with three Ramp Intervals is configured for this subscription with each year being a Ramp Interval. The subscription is created by Order 1 with one regular charge and one discount charge as below:

  • Charge 1: a recurring regular charge of the Flat Fee charge model, price: $100/month, billing period: Semi-Annual, billing cycle day: 10th of the month, and billing alignment: Align to charge.
  • Charge 2: recurring discount percentage charge, 20%, billing period: Semi-Annual, and billing cycle day: 10th of the month. This discount charge is applicable to Charge 1.

The billing rules settings in the tenant are: 

  • Prorate recurring charges for partial period? = Yes
  • Bill recurring charges for partial month? (with monthly based billing periods)? = Yes
  • When prorating a month, assume 30 days in a month or use actual days? = Use actual number of days
  • When prorating periods greater than a month, prorate by month first, or by day? = Prorate by month first

Then the subscription is amended by Order 2 with the price of Charge 1 being updated to $200/month from 2022/07/01 to the term end date. This subscription now has two versions. Version 1 is created by Order 1 and Version 2 is created by Order 2.

Example 1:

The following example shows the TCB metrics calculation for Subscription Version 1 created by Order 1.

Step 1 - Calculate the rating results per the same rating rule as that of the Zuora's rating and billing engine (RBE). The rating results for Charge 1 and Charge 2 are shown in the following diagram:

Ramp metrics- TCB in Order 1.jpeg

Step 2 - Map the rating results to the Ramp Intervals, as shown in the table below:

Interval Rating Result Number Period Start Date Period End Date Regular Charge Amount Discount Amount
Interval 1 1 2021/1/1 2021/1/9 9/31*100=29.03 -(29.03*20%)=-5.81
Interval 1 2 2021/1/10 2021/7/9 600 -(600*20%)=-120
Rating result 3 spans over Interval 1 and Interval 2. 3 2021/7/10 2022/1/9 600 -120
Interval 2 4 2022/1/10 2022/7/9 600 -120
Rating result 5 spans over Interval 2 and Interval 3. 5 2022/7/10 2023/1/9 600 -120
Interval 3 6 2023/1/10 2023/7/9 600 -120
Interval 3 7 2023/7/10 2023/12/31 (5+22/31)/6*600=570.97 -(570.97*20%)=-114.19

Step 3 - Segment the Rating result 3 and 5 that span over multiple Ramp Intervals based on the overlap period of the rating result and the Ramp Interval. The amount is distributed based on the time length ratio of the overlap period compared to the rating result period length. See the table below:

Interval Rating Result Number Period Start Date Period End Date Ratio of Overlap Period Regular Charge Amount Discount Amount
Interval 1 1 2021/1/1 2021/1/9 1 29.03 -5.81
Interval 1 2 2021/1/10 2021/7/9 1 600 -120
Interval 1 3 2021/7/10 2021/12/31 (5+22/31)/6 600*(5+22/31)/6=570.97 (-120)*(5+22/31)/6=-114.19
Interval 2 2022/1/1 2022/1/9 (9/31)/6 600*(9/31)/6=29.03 (-120)*(9/31)/6=-5.81
Interval 2 4 2022/1/10 2022/7/9 1 600 -120
Interval 2 5 2022/7/10 2022/12/31 (5+22/31)/6 600*(5+22/31)/6=570.97 (-120)*(5+22/31)/6=-114.19
Interval 3 2023/1/1 2023/1/9 (9/31)/6 600*(9/31)/6=29.03 (-120)*(9/31)/6=-5.81
Interval 3 6 2023/1/10 2023/7/9 1 600 -120
Interval 3 7 2023/7/10 2023/12/31 1 570.97 -114.19

Step 4 - Combine the distributed rating result amounts per charge segment for each Ramp Interval, as in the table below. In this example, both Charge 1 and Charge 2 have only one charge segment. See Segmented rate plan charges for more information about charge segments.

Interval Rating Result Number Period Start Date Period End Date Regular Charge Amount Discount Amount Combined Regular Charge Amount
(Gross TCB)
Combined Discount Amount
(Discount TCB)
Interval 1 1 2021/1/1 2021/1/9 29.03 -5.81 29.03+600+570.97=1200 (-5.81)+(-120)+(-114.91)=-240
2 2021/1/10 2021/7/9 600 -120
3 2021/7/10 2021/12/31 570.97 -114.19
Interval 2 3 2022/1/1 2022/1/9 29.03 -5.81 1200 -240
4 2022/1/10 2022/7/9 600 -120
5 2022/7/10 2022/12/31 570.97 -114.19
Interval 3 5 2023/1/1 2023/1/9 29.03 -5.81 1200 -240
6 2023/1/10 2023/7/9 600 -120
7 2023/7/10 2023/12/31 570.97 -114.19

The final result for the TCB in Ramp Interval Metrics in Order 1 for Subscription Version 1 is shown in the table below. The Net TCB value is calculated by the formula:
Net TCB = Gross TCB - Discount TCB.

Interval Charge  Charge Segment Start Date End Date Gross TCB Discount TCB Net TCB
Interval 1 Charge 1 Charge Segment 1 2021/1/1 2021/12/31 1200 -240 960
Interval 2 Charge 1 Charge Segment 1 2022/1/1 2022/12/31 1200 -240 960
Interval 3 Charge 1 Charge Segment 1 2023/1/1 2023/12/31 1200 -240 960

Example 2

The following example shows the TCB metrics calculation for Subscription Version 2 created by Order 2 in the example subscription. The subscription is amended by Order 2 with the price of Charge 1 being updated to $200/month from 2022/07/01 to the term end date. 

Step 1 - Calculate the rating results per the same rating rule as that of the Zuora's rating and billing engine (RBE). The rating results for Charge 1 and Charge 2 are shown in the following diagram:

Ramp metrics- TCB in Order 2.jpeg

Step 2 - Map the rating results to the Ramp Intervals, as shown in the table below:

Interval Rating Result Number Period Start Date Period End Date Regular Charge Amount Discount Amount
Interval 1 1 2021/1/1 2021/1/9 9/31*100=29.03 -(29.03*20%)=-5.81
Interval 1 2 2021/1/10 2021/7/9 600 -120
Rating result 3 spans over Interval 1 and Interval 2 3 2021/7/10 2022/1/9 600 -120
Interval 2 4 2022/1/10 2022/6/30 (5+21/30)/6*600=570 -(570*20%)=-114
Interval 2 5 2022/7/1 2022/7/9 9/30*200=60 -(60*20%)=-12
Rating result 6 spans over Interval 2 and Interval 3 6 2022/7/10 2023/1/9 1200 -240
Interval 3 7 2023/1/10 2023/7/9 1200 -240
Interval 3 8 2023/7/10 2023/12/31 (5+22/31)/6*1200=1141.94 -(1141.94*20%)=-228.39

Step 3 - Segment the Rating result 3 and 6 that span over multiple Ramp Intervals based on the overlap period of the rating result and the Ramp Interval. The amount is distributed based on the time length ratio of the overlap period compared to the rating result period length. See the table below:

Interval Rating Result Number Period Start Date Period End Date Ratio of Overlap Period Regular Charge Amount Discount Amount
Interval 1 1 2021/1/1 2021/1/9 1 29.03 -5.81
Interval 1 2 2021/1/10 2021/7/9 1 600 -120
Interval 1 3 2021/7/10 2021/12/31 (5+22/31)/6 600*(5+22/31)/6=570.97 (-120)*(5+22/31)/6=-114.19
Interval 2 2022/1/1 2022/1/9 (9/31)/6 600*(9/31)/6=29.03 (-120)*(9/31)/6=-5.81
Interval 2 4 2022/1/10 2022/6/30 1 570 -114
Interval 2 5 2022/7/1 2022/7/9 1 60 -12
Interval 2 6 2022/7/10 2022/12/31 (5+22/31)/6 1200*(5+22/31)/6=1141.94 (-240)*(5+22/31)/6=-228.39
Interval 3 2023/1/1 2023/1/9 (9/31)/6 1200*(9/31)/6=58.06 (-120)*(9/31)/6=-5.81
Interval 3 7 2023/1/10 2023/7/9 1 600 -120
Interval 3 8 2023/7/10 2023/12/31 1 1141.94 -228.39

Step 4 - Combine the distributed rating result amounts per charge segment for each Ramp Interval, as in the table below. In this example, Charge 1 has two charge segments: Charge Segment 1 from 2020/1/1 to 2022/6/30 (price: $100/month) and Charge Segment 2 from 2022/7/1 to 2023/12/31 (price: $200/month). See Segmented rate plan charges for more information about charge segments.

Interval Rating Result Number Period Start Date Period End Date Regular Charge Amount Discount Amount Combined Regular Charge Amount
(Gross TCB)
Combined Discount Amount
(Discount TCB)
Charge Segment
Interval 1 1 2021/1/1 2021/1/9 29.03 -5.81 29.03+600+570.97=1200 (-5.81)+(-120)+(-114.19)=-240 Charge Segment 1
2 2021/1/10 2021/7/9 600 -120
3 2021/7/10 2021/12/31 570.97 -114.19
Interval 2 3 2022/1/1 2022/1/9 29.03 -5.81 29.03+570=599.03 (-5.81)+(-114)=-119.81
4 2022/1/10 2022/6/30 570 -114
Interval 2 5 2022/7/1 2022/7/9 60 -12 60+1141.94=
1201.94
(-12)+(-228.39)=-240.39 Charge Segment 2
6 2022/7/10 2022/12/31 1141.94 -228.39
Interval 3 6 2023/1/1 2023/1/9 58.06 -5.81 58.06+600+1141.94=2400 (-5.81)+(-120)+(-228.39)=-480
7 2023/1/10 2023/7/9 600 -120
8 2023/7/10 2023/12/31 1141.94 -228.39

The final result for the TCB in Ramp Interval Metrics in Order 2 for Subscription Version 2 is shown in the table below. The Net TCB value is calculated by the formula:
Net TCB = Gross TCB - Discount TCB.

Interval Charge  Charge Segment Start Date End Date Gross TCB Discount TCB Net TCB
Interval 1 Charge 1 Charge Segment 1 2021/1/1 2021/12/31 1200 -240 960
Interval 2 Charge 1 Charge Segment 1 2022/1/1 2022/6/30 599.03 -119.81 479.22
Interval 2 Charge 1 Charge Segment 2 2022/7/1 2022/12/31 1201.94 -240.39 961.55
Interval 3 Charge 1 Charge Segment 1 2023/1/1 2023/12/31 2400 -480 1920

Delta TCB in Ramp Interval Delta Metrics

Delta TCB is the delta value in the total amount of all the TCB values in the Ramp Interval Metrics level for a single charge per Ramp Interval between a subscription's current version and the previous version when an Order is created. 

Zuora calculates the Delta TCB in Ramp Interval Delta Metrics by the following steps:

  1. Combine the TCB in the Ramp Interval Metrics level for each charge per Ramp Interval.
  2. Compare the combined TCB value for each charge per Ramp Interval between a subscription's current version and the previous version when an Order is created and return the delta TCB value for each charge per Ramp Interval.

Example:

In this example, we continue to use the same sample subscription above as in TCB in Ramp Interval Metrics and show the Delta TCB metrics calculation in Order 2. Order 2 creates Subscription Version 2 based on Subscription Version 1.

Step 1 - Combine the TCB in the Ramp Interval Metrics level for each charge per Ramp Interval.

The TCB in the Ramp Interval Metrics level for Subscription Version 2 is as in the table below. The two items of TCB for Interval 2 need to be combined.

Interval Charge  Charge Segment Start Date End Date Gross TCB Discount TCB Net TCB
Interval 1 Charge 1 Charge Segment 1 2021/1/1 2021/12/31 1200 -240 960
Interval 2 Charge 1 Charge Segment 1 2022/1/1 2022/6/30 599.03 -119.81 479.22
Interval 2 Charge 1 Charge Segment 2 2022/7/1 2022/12/31 1201.94 -240.39 961.55
Interval 3 Charge 1 Charge Segment 1 2023/1/1 2023/12/31 2400 -480 1920

 After combination, the result for Subscription Version 2 is:

Interval Charge  Start Date End Date Gross TCB Discount TCB Net TCB
Interval 1 Charge 1 2021/1/1 2021/12/31 1200 -240 960
Interval 2 Charge 1 2022/1/1 2022/12/31 599.03+1201.94
=1800.97
(-119.81)+(-240.39)=-360.2 1440.77
Interval 3 Charge 1 2023/1/1 2023/12/31 2400 -480 1920

The TCB in the Ramp Interval Metrics level for Subscription Version 1 is as in the table below. Charge 1 has only one charge segment, so no combination is needed. 

Interval Charge  Start Date End Date Gross TCB Discount TCB Net TCB
Interval 1 Charge 1 2021/1/1 2021/12/31 1200 -240 960
Interval 2 Charge 1 2022/1/1 2022/12/31 1200 -240 960
Interval 3 Charge 1 2023/1/1 2023/12/31 1200 -240 960

Step 2 - Compare the combined TCB value for each charge per Ramp Interval between a subscription's current version and the previous version after an Order is created and return the delta TCB value by the formula: Delta = V2 - V1.

Comparing the TCB values in the Subscription Version 1 and 2 as in the table below:

Interval Charge Start Date End Date Subscription Version Gross TCB Discount TCB Net TCB
Interval 1 Charge 1 2021/1/1 2021/12/31 Version 2 1200 -240 960
Version 1 1200 -240 960
Interval 2 Charge 1 2022/1/1 2022/12/31 Version 2 1800.97 -360.2 1140.77
Version 1 1200 -240 960
Interval 3 Charge 1 2023/1/1 2023/12/31 Version 2 2400 -480 1920
Version 1 1200 -240 960

As you can see from the table above:

  • Charge 1 has no change in TCB in Interval 1. Therefore, no Delta TCB metrics will be present for Interval 1 in Order 2.
  • Charge 1 has TCB changes in Interval 2 and Interval 3. Therefore, Delta TCB metrics will be present in Order 2 for Interval 2 and Interval 3.

Therefore, the Delta TCB in Order 2 is as in the table below:

Interval Charge Start Date End Date Delta Gross TCB Delta Discount TCB Delta Net TCB
Interval 2 Charge 1 2022/1/1 2022/12/31 600.97 -120.2 180.77
Interval 3 Charge 1 2023/1/1 2023/12/31 1200 -240 960

Quantity in Ramp Interval Metrics

Zuora calculates the Quantity in Ramp Interval Metrics by the following steps:

  1. Calculate the Quantity for each charge segment in the subscription. See Segmented rate plan charges for more information about charge segments.
  2. Map the Quantity of each charge segment to a specific Ramp Interval according to whether the time period of the charge segment falls into the time period of the Ramp Interval.
  3. If the time period of a charge segment spans over multiple Ramp Intervals, this time period will be further segmented and then mapped to the corresponding Ramp Interval.   

See the following example.

Example Subscription:

Suppose your customer has a 3-year termed subscription from 2021/01/01 to 2023/12/31. A Ramp with three Ramp Intervals is configured for this subscription with each year being a Ramp Interval. The subscription is created by Order 1 with one monthly recurring regular charge of the Per Unit charge model. The list price is $10/month for each product and the quantity for this regular charge is:

  • 5 for the time period: 2021/1/1 to 2022/6/30
  • 10 for the time period: 2022/7/1 to 2023/12/31. 

Then the subscription is amended by Order 2 with the quantity being updated to 20 from 2023/1/1 to the term end.

The following example shows the Quantity metrics calculation for Subscription Version 1 created by Order 1 and Subscription Version 2 created by Order 2.

Step 1 - Calculate the Quantity for each charge segment in the subscription. The Quantity metrics for both subscription versions are shown in the diagram below:

Ramp metrics- Quantity.jpeg

Step 2 - Map the Quantity of each charge segment to Ramp Intervals. 

Subscription Version 1:

Interval Charge Segment Start Date End Date Quantity
Charge segment 1 spans over Interval 1 and Interval 2. Charge Segment 1 2021/1/1 2022/6/30 5
Charge segment 2 spans over Interval 2 and Interval 3. Charge Segment 2 2022/7/1  2023/12/31 10

Subscription Version 2:

Interval Charge Segment Start Date End Date Quantity
Charge segment 1 spans over Interval 1 and Interval 2. Charge Segment 1 2021/1/1 2022/6/30 5
Interval 2 Charge Segment 2 2022/7/1  2022/12/31 10
Interval 3 Charge Segment 3 2023/1/1 2023/12/31 20

Step 3 - Segment the time period that spans over multiple Ramp Intervals and map the sub-periods to Intervals.

The final Quantity metrics in Ramp Interval Metrics in Order 1 for Subscription Version 1 is as in the table below:

Interval Charge Segment Start Date End Date Quantity
Interval 1 Charge Segment 1 2021/1/1 2021/12/31 5
Interval 2 Charge Segment 1  2022/1/1 2022/6/30 5
Interval 2 Charge Segment 2 2022/7/1 2022/12/31 10
Interval 3 Charge Segment 2 2023/1/1 2023/12/31 10

The final Quantity metrics in Interval Metrics in Order 2 for Subscription Version 2 is as in the table below:

Interval Charge Segment Start Date End Date Quantity
Interval 1 Charge Segment 1 2021/1/1 2021/12/31    5
Interval 2 Charge Segment 1  2022/1/1 2022/6/30 5
Interval 2 Charge Segment 2 2022/7/1  2022/12/31 10
Interval 3 Charge Segment 3 2023/1/1 2023/12/31 20

Delta Quantity in Ramp Interval Delta Metrics

Delta Quantity in Ramp Interval Delta Metrics is the delta value in the Quantity amount of a charge between a subscription's current version and the previous version for each Ramp Interval. 

Example:

In this example, we continue to use the same sample subscription above as in Quantity in Ramp Interval Metrics and show the Delta MRR metrics calculation in Order 2. Order 2 creates Subscription Version 2 based on Subscription Version 1.

Comparing the Quantity amount in Subscription Version 2 with that of Version 1, you can see:

  • The Quantity metric in Ramp Interval Metrics for Interval 1 and Interval 2 has no change. Therefore, no Delta Quantity metrics will be present for Interval 1 and Interval 2.
  • The Quantity metric in Ramp Interval Metrics is changed in Interval 3.

The table below compares the Quantity amount in Interval 3 between Subscription Version 1 and Version 2:

Subscription Version Interval Start Date End Date Quantity
Version 1 Interval 3 2023/1/1 2023/12/31 10
Version 2 Interval 3 2023/1/1 2023/12/31 20

Therefore, you can access the following set of Delta MRR metrics in Ramp Interval Delta Metrics in Order 2:

Order Interval Charge Start Date End Date Delta Quantity Amount
Order 2 Interval 3 The regular charge in this example 2023/1/1 2023/12/31 20-10=10