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Quote and Charge Metrics

This article describes Quote and charge metrics in Zuora CPQ in two scenarios: without the Orders feature turned on and with the Orders feature on.

Quote and charge metrics are calculated based on a specified number of billing periods or based on the term end date of the subscription. The metrics are displayed on the Quote Detail page.

For proper calculation of the quote metrics, the Zuora Connection user must have the Post Invoice permission. 

If you implemented a custom code to display quote and charge metrics, see Populate Quote and Charge Metrics in Custom Code for the steps to retrieve the metrics from Zuora and display them on your custom quote page.

Quote Metrics without Orders

Quote metrics are available as of Zuora Quotes version 6.0.

See the Zuora Quotes Q4 2013 Upgrade for more information how to configure the Quote Detail page with a revised layout and update your quotes to trigger a recalculation to use quote metrics.

The MRR and TCV metrics are displayed for New Subscription quotes, and Delta MRR and Delta TCV metrics are displayed for Amendment and Renewal quotes.

The following quote metrics are available:

Metric Description
MRR
(Monthly Recurring Revenue)

Monthly recurring revenue (MRR) calculates subscription recurring fees normalized to a monthly value.

Delta MRR

Delta of the total MRRs between the original subscription and the amendment. 

For renewals, this is the MRR of the new contract.

TCV
(Total Contract Value)

Total contract value (TCV) calculates the total recurring charges over the lifetime of a subscription. For instance, a three year contract billed annually at $50,000 per year has a total contract value of $150,000, assuming no activation or setup fees.

Delta TCV

Delta of the TCVs between the original subscription and the amendment. 

For renewals, this is the TCV of the new contract.

Sub-total The quote subtotal for the specified billing periods, excluding discount charges and taxes.
Discount The sum of all discount charges for the specified billing periods.
Tax The tax calculated for the specified billing periods.
Total The quote total for the specified billing periods, including discount charges and taxes.

Quote Metrics Calculation Period

Quote metrics are calculated based on the Calculate Quote Metrics Through setting: Number of Billing Periods or End of Term

  • Based on the Number of Billing Periods

If the Calculate Quote Metrics Through value is set to a specified number of billing periods, quote metrics are calculated using the number of billing periods. Note that the number of billing periods option is treated differently for evergreen and termed subscriptions: 

  • Evergreen Subscription: Number of billing periods will always default to 1. 
  • Termed Subscription: Number of billing periods will be the user entered value. 
  • Based on End of Term Date 

If the Calculate Quote Metrics Through value is set to the End of Term, quote metrics are calculated through the End of Term date based on the quote type: 

  • New Subscription Quote: End of Term Date = Term Start Date (if null, default to the Quote Start Date) + Initial Term
  • Amendment Quote: End of Term Date = Term End Date of the original Subscription
  • Renewal Quote: End of Term Date = Term End Date of the original Subscription  + Renewal Term
  • Cancelation Quote: End of Term Date = Cancelation Effective Date

Quote Metrics Calculation/Recalculation Trigger

Quote metrics are calculated automatically when a New Subscription quote or a Renewal quote is created. Quote metrics are recalculated and updated if you update:

  • Certain subscription term and date values on a quote

Quote metrics are recalculated if any of the following Subscription Terms values are updated on a quote:

  • Start Date
  • Subscription Term Type
  • Initial Term
  • Term Start Date
  • Service Activation Date
  • Customer Acceptance Date

Additionally, quote metrics are recalculated if the Calculate Quote Metrics Through option (from Zuora Quotes) Default Value page or Quote Detail page) is updated.

  • Any values on a quote charge or a quote charge tier that result in the change of Total Price of the charge
  • Quote Charges

Quote metrics are recalculated after updating any of the following charge values on the Product Selection page of a quote:

  • Effective Price
  • Quantity
  • Discount %
  • Tiered Quote Charges

When the Discount % or Effective Price values on a tiered quote charge of a quote are updated, quote metrics are recalculated only when the updated tiered level is reached.

For example, if you update the Discount % on Tier 2 from 0 to 5%, this change will recalculate quote metrics only when Tier 2 pricing is reached.

  • Any values on a discount charge

Quote metrics are recalculated after updating any of the following discount values from the Product Selection page of a quote:

  • Discount Percentage
  • Discount Fixed Amount
  • Up to How Many Periods
  • Discount Level
  • The address of the Sold-to Contact

Quote metrics are recalculated after updating any information on the Sold To Contact page, including the address. 

You can only update Sold To Contact information on a quote that has already been sent to Zuora.

  • Add or remove a rate plan

Quote metrics are recalculated after adding or removing a product rate plan from the Product Selection page of a quote.

  • Change the invoice owner
    The Invoice Owner field does not appear on the quote pages by default. Add the field to the appropriate field set to have the field available for edit in the quote flow. See Layout Configuration Settings for detail information.

The recalculated metrics can be viewed when you go to the Quote Detail page.

Set the Default Metric Calculation Period for All Quotes

You can set a default for calculating quote metrics based on a specific number of billing periods or through the end of a subscription term. See Configure Quote Settings for more information on this option.

To set the default calculation period for all quote metrics:

  1. In Salesforce, click the Zuora Quotes Config tab and click Default Value Settings from the Zuora CPQ Quotes Configuration Setting page.
  2. Click Edit Settings.
  3. From the Quote Default Settings section, select one of the following Calculate Quote Metrics Through options:
    • Specific a number of Billing Period(s) from 1 up to 36 periods.
    • End of Term.
  4. Click Save.

Set the Metric Calculation Period on a Single Quote

From the Quote Detail page, you can override the organization-level Calculate Metrics Through setting on the current quote. After setting and saving this value on the quote, metrics are calculated for this quote based on the Calculate Metrics Through value set on the quote.

  1. Click the quote name on the Quotes tab or from an opportunity to open the quote.
  2. On the Quote Detail page, click Edit Quote Details.
  3. Under the Quote Information section, set the Calculate Quote Metrics Through option for this quote.
  4. Click Save.

Charge Metrics without Orders 

The charge metrics are available for all quote types via the Quote Charge Detail (zqu__QuoteChargeDetail__c) object. The process to retrieve the metrics are:

  1. The charge level metrics are retrieved directly from Zuora's Rating and Billing engine and stored in the Quote Charge Detail (zqu__QuoteChargeDetail__c) object:
    • MRR (zqu__MRR__c) for the New Subscription and Renewal quotes
    • TCV (zqu__TCV__c) for the New Subscription and Renewal quotes
    • Delta MRR (zqu__DeltaMRR__c) for the Amendment and Cancellation quotes
    • Delta TCV (zqu__DeltaTCV__c) for the Amendment and Cancellation quotes
  2. The metrics are also stored in the corresponding fields on the Quote Rate Plan Charge (zqu__QuoteRatePlanCharge__c) and Quote Charge Summary (zqu__QuoteChargeSummary__c) objects if those objects exist. 
    • TCV (zqu__PreviewedTCV__c)
    • MRR (zqu__PreviewedMRR__c)

The below metrics are available at the charge and charge summary level.

Quote Type Metrics Available
New Subscription
  • MRR
  • TCV
  • Discount
  • Tax
  • Subtotal
  • Total
New Product Amendment
  • Delta MRR
  • Delta TCV
  • Discount
  • Tax
  • Subtotal
  • Total
Update Product Amendment
  • Delta MRR
  • Delta TCV
  • Discount
  • Tax
  • Subtotal
  • Total
Renewal
  • MRR
  • TCV

The charge level metrics do not appear on the Quote Detail page, by default. Refer to the steps described in Display Charge Level Metrics to configure Zuora Quotes to show the charge level metrics on the Quote Detail page.

Charge Metrics and Automatic Price Change Option

If the Price Change Option of a product charge is set to Use Latest Product Catalog, quoting metrics for the charge reflect the catalog price at the time of quoting, and they may be out of sync if the charge was changed in Product Catalog between the time the quote is approved and the time the quote is sent.

To keep the metrics consistent through the quoting lifecycle, you should ensure the Product Catalog is current in Salesforce when creating and sending quotes with the Use Latest Product Catalog charge option.

Limitations

The following limitations exist in the charge level metrics.

  • The metrics for the Cancellation quotes are only available through the Quote Charge Detail.
  • The charge metrics for the discount charges, both the fixed amount and percentage types, are not created or updated in the Quote Charge Detail. Currently, Zuora does not return any values for the charge metrics for the discount charge.
  • The Discount (zqu__BillingDiscount__c) field on the Quote Charge Detail records represents the amount of the initial charge that is discounted.

The Discount field is populated for:

  • One-Time charges
  • Recurring charges

The Discount field is not populated for:

  • Usage charges
  • Discounts reflected by Discount Charges for One-Time and Recurring charges

Quote and Charge Metrics in Orders

This feature is only available if you have the Orders feature enabled. We are actively soliciting feedback from a small set of early adopters. If you wish to have access to the feature, submit a request at Zuora Global Support.

Order metrics capture the impact of every change across the whole subscription lifecycle. The charge metrics represent the net changes on a charge caused by a specific action. While subscription metrics provide the values of a subscription over time, order metrics provide the values for a single transactional event within an order. Order metrics enhance the subscription metrics by including additional metrics, such as Discount Monthly Recurring Revenue (DMRR) and Total Contracted Billing (TCB).

There are three types of metrics based on how the values are aggregated across charge segments:

  • Simple, single value metrics such as CMRR.  
  • Time series metrics such as MRR and ARR. They cannot be represented as a single number, but rather need to be represented as a time series.
  • Aggregate metrics such as TCV, ACV and TCB that are meaningful when applied across a period of time.

When the Orders setting is enabled in your Zuora tenant and Zuora Quotes org, previewing a quote produces order metrics, charge metrics, and invoice metrics by Zuora as below:

  • Zuora Quotes retrieves the charge metrics and invoice metrics from Zuora, stores them in the Quote Rate Charge Detail (zqu__QuoteChargeDetail__c) to aggregate and populate the quote metrics. 
  • Zuora Quotes retrieves the delta order metrics from Zuora, stores them in the Quote Charge Summary (zqu__QuoteChargeSummary__c) object and the Quote Rate Plan Charge (zqu__QuoteRatePlanCharge__c) object to populate the charge metrics.

The MRR, TCB, and TCV metrics are displayed for New Subscription quotes, and Delta MRR, Delta TCB, and Delta TCV metrics are displayed for Amendment and Renewal quotes.

See Quote Metrics Object Model in Orders for detailed information.

When the Orders setting is enabled, the Previewd MRR (zqu__PreviewedMRR__c) and Previewed TCV  (zqu__PreviewedTCV__c) metrics are no longer populated on the Quote Rate Plan Charge (zqu__QuoteRatePlanCharge__c) and Quote Charge Summary (zqu_QuoteChargeSummary__c) objects.

The following table describes the quote metrics and the mappings between Zuora and Zuora Quotes fields.

Zuora Metric Metric Field on Quote Description

Total Contracted Billing
(TCB)

Total Contracted Billing
(zqu__Previewed_TCB__c)
The amount billed in a contract.
TCB Tax TCB Tax
(zqu__TCBTax__c)
Tax on the TCB.

Total Contracted Value
(TCV)

Total Contract Value
(zqu__Previewed_TCV__c)
The total recurring charges over the lifetime of an order. For instance, a three-year contract billed annually at $50,000 per year has a total contract value of $150,000, assuming no activation or setup fees.

Monthly Recurring Revenue
(MRR)

Monthly Recurring Revenue
(zqu__Previewed_MRR__c)

The subscription recurring fees normalized to a monthly value.

This metric takes into account the expected cancellations, upgrades, and downgrades in the subscription, i.e. contracted MRR.

Discount TCB

Discount TCB
(zqu__DiscountTCB__c)

The impact of the discount charges against the TCB.

 

Discount TCB Tax Discount TCB Tax
(zqu__DeltaDiscountTCBTax__c)
Tax on Discount TCB.

Discount TCV

Discount TCV

(zqu__DiscountTCV__c)

The impact of the discount charges against the TCV.

Discount MRR

Discount MRR

(zqu__DiscountMRR__c)

The impact of the discount charges against the contracted MRR.

 

The following table describes the invoice metrics and the mappings between Zuora and the Zuora Quotes fields. The invoice metric fields are used to populate the quote level metrics.

Zuora Invoice Metric Metric Field on Quote Description
Total Without Tax

Sub-total

(zqu__Previewed_SubTotal__c)

The quote subtotal for the specified billing periods, excluding discount charges and taxes.
Discount

Discount

(zqu__Previewed_Discount__c)

The sum of all discount charges for the specified billing periods.
Tax

Tax

(zqu__Previewed_Tax__c)

The tax calculated for the specified billing periods.

Total

Total

(zqu__Previewed_Total__c)

The quote total for the specified billing periods, including discount charges and taxes.

 

For the invoice metrics shown in the above table, we recommend you review your implementation requirements and consider if the TCB metrics are an appropriate replacement.

The following table describes the charge metrics and the mappings between Zuora and the Quote Charge Summary object fields. Quote Charge Summary metrics fields are used to populate the charge level metrics.

Zuora Charge Metric Metric Field on
Quote Charge Summary
Description

Delta TCB

Delta TCB
(zqu__DeltaTCB__c)

The delta of the total TCBs between the original subscription and the order action. 

For renewals, this is the TCB of the new contract.

Delta TCB Tax Delta TCB Tax
(zqu__DeltaTCBTax__c)
Tax on Delta TCB.

Delta TCV

Delta TCV
(zqu__DeltaTCV__c)

The delta of the TCVs between the original subscription and the order action. 

For renewals, this is the TCV of the new contract.

Delta MRR

Delta MRR
(zqu__DeltaMRR__c)

The delta of the total MRRs between the original subscription and the order action. 

For renewals, this is the MRR of the new contract.

Delta Discount TCB

Delta Discount TCB
(zqu__DeltaDiscountTCB__c)

The delta of the Discount TCBs between the original subscription and the order action. 

For renewals, this is the Discount TCB of the new contract.

Delta Discount TCB Tax Delta Discount TCB Tax
(zqu__DeltaDiscountTCBTax__c)
Tax on Delta Discount TCB.

Delta Discount TCV

Delta Discount TCV
(zqu__DeltaDiscountTCV__c)

The delta of the Discount TCVs between the original subscription and the order action. 

For renewals, this is the Discount TCV of the new contract.

Delta Discount MRR

Delta Discount MRR
(zqu__DeltaDiscountMRR__c)

The delta of the Discount MRRs between the original subscription and the order action. 

For renewals, this is the Discount MRR of the new contract.

Quote Metrics Object Model in Orders

This feature is only available if you have the Orders feature enabled. We are actively soliciting feedback from a small set of early adopters. If you wish to have access to the feature, submit a request at Zuora Global Support.

The main Zuora Quotes objects for quote metrics are:

  • Quote Charge Detail: Contains the charge level metrics after all actions are applied to the charge
  • Quote Charge Summary: Contains the delta charge level metrics after a single action is applied to the charge
  • Quote: Contains the quote level metrics

The following diagram shows the objects and fields involved in order and charge metrics in Zuora and Zuora Quotes.

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