Updating the Total Contract Value (TCV) (Sales) on the Billing Header
The Total Contract Value (TCV) (Sales) field on the Billing Header (BH) stores the contract value of an asset from the new sale. For evergreen Order Line Items (OLI), this field is dynamic and keeps updating as new BSRs are added as part of the renewal process. The number of new BSRs created depends on the value populated in the Renewal Term field. The BSRs contain the fee amount rolled up from the respective BSDs. Therefore, the TCV (Sales) is updated to reflect the total amount from the new sale plus the sum of the amounts of the newly created BSRs.
Consider the following example:
An Evergreen service is billed for USD 1,200.00 every quarter. The TCV (Sales) field on the BH has a value of USD 1,200.00. Billing is initiated, and four BSRs (BSR-1, BSR-2, BSR-3, and BSR-4) are created with a fee amount of USD 300.00 and invoiced.
The auto-renewal term is set to 2, hence two new BSRs are created because of auto-renewal functionality.
|
BSR ID |
BH ID |
Period Start Date |
Period End Date |
Actual Fee Amount |
Status |
|---|---|---|---|---|---|
|
BSR-5 |
BH-1 |
01-March-2024 |
31-May-2024 |
USD 300.00 |
Pending Billing |
|
BSR-6 |
BH-1 |
01-June-2024 |
31-Aug-2024 |
USD 300.00 |
Pending Billing |
Now the value in the TCV (Sales) field is revised to reflect the fee amount of the newly created BSRs (updated in the Billable Amount For The Current Order Line field on the BH) along with the previous sale TCV (Sales).
Hence the new TCV (Sales) = USD 1,800.00 (USD 1,200.00 + USD 600.00).