Loading
HelpCommunityTraining Center

ArticlesHow Total Contract Value is Calculated?

Knowledge Article

How Total Contract Value is Calculated?

Total Contract Value (TCV) is the sum of a contract's Total Contract Line Values (TCLV). The TCLV for each line is calculated by multiplying the Sales Price by the Number of Terms. Using a custom trigger with a custom field for the TCLV calculation may lead to inaccuracies. This is because other fields, such as Billing Type and Discount, also affect the calculation.

  • Feb 6, 2024
  • Knowledge

Title
How Total Contract Value is Calculated?
Summary
Total Contract Value (TCV) is the sum of a contract's Total Contract Line Values (TCLV). The TCLV for each line is calculated by multiplying the Sales Price by the Number of Terms. Using a custom trigger with a custom field for the TCLV calculation may lead to inaccuracies. This is because other fields, such as Billing Type and Discount, also affect the calculation.
URL Name
How-Total-Contract-Value-is-Calculated

Question
  • How Total Contract Value is Calculated?
  • Can a custom field be used to calculate the Total Contract Value?
Answer
  • Total Contract Value (TCV) is the sum of a contract's Total Contract Line Values (TCLV). The TCLV of a line is calculated from the Sales Price * Number of Terms.
  • If wanting to use a custom trigger that defaults a custom field to be used in TCLV calculation, it might cause a contract line's TCLV calculation to be incorrect. As there are different other fields involved in TCLV calculation such as Align for Billing, Billing Type, Billing Term, Charge Term, Start Date, End Date, Discount, Pricing Structure, Quantity, Unit Price.
Additional Notes
For more information on How Total Contract Value is Calculated, please review this documentation.
Release Version
Professional Services CloudCustomer Success CloudMulti-Revenue BillingFinancial Management Cloud
Was this article helpful?
Upload Files
Recommendations
No results for undefined
Loading
Knowledge:How Total Contract Value is Calculated?