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CCV calculation


CCV calculation

Charge contractual value (CCV) is the estimated cumulative sum of all invoiced or to-be-invoiced charges against a rate plan charge upon booking, inclusive of any proration. CCV is generated when a subscription is created, and it can be updated during the subscription lifecycle.

In the following scenarios, the CCV amount might be different from the actual invoice amount:

  • Remove or cancel one-time charges without enabling credit back.
  • Cancel regular charges and percentage discounts in a period that has been billed.
  • Change the Bill Cycle Day (BCD) of customer accounts.
  • Add subscription-level discounts after the regular charge is billed.
  • Change billing rule settings.
  • Apply multiple discount charges to the same regular charge that has been billed.

To learn more about these scenarios and how to handle the variances, see Handle variances for reconciliation between booking and billing for more information.

To understand how CCV is calculated for evergreen subscriptions, see CCV calculation for evergreen subscriptions.

Indicators for CCV calculation

The CCV calculation is dependent on the following indicators:

Supported tax engines

Zuora Revenue requires the tax to be excluded from CCV because the tax amount does not impact the revenue. Therefore, even if the Tax Mode setting is set to Tax Inclusive for product rate plan charges in Zuora Billing, the tax amount is excluded from the charge price to derive the correct CCV in Zuora Revenue. If the tax rate is changed in Zuora Billing, Zuora Revenue will calculate the CCV based on the new tax rate. The tax rate date is the subscription term start date.

The following tax engines are currently supported by Billing - Revenue Integration. For other tax engines, the CCV calculation will result in zero.

CCV calculation examples

Your customer subscribed to 10 units of your product for 12 months, from 2020-01-01 to 2020-12-31, with a monthly billing period and a list price of $5.00 per unit. The BCD is the 1st day of each month.

The CCV is generated when this subscription is created:

Charge  Segment Version CCV Start Date End Date
C-0000001 1 1 10 * 12 * 5= 600.00 2020-01-01 2020-12-31

On 2020-03-31, you update the product and increase the quantity from 10 to 13. A new rate plan charge segment is created. CCV is recalculated accordingly:

Charge  Segment Version CCV Start Date End Date
C-0000001 1 1 10 * 3 * 5 = 150.00 2020-01-01 2020-03-31
C-0000001 2 2 13 * 9 * 5 = 585.00 2020-04-01 2020-12-31

View CCV

You can use one of the following methods to view the CCV of transactions: