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Calculate ARR / ACV and MRR / MCV in Salesforce CPQ

John Garvens · March 22, 2024 ·

Contents

  • 00:00 Introduction
  • 09:54 Creating a Quote and Setting Up Fields
  • 10:15 Understanding Recurring and Non-Recurring Revenue
  • 13:29 Quote Data Model and Calculation Sequence
  • 18:56 Setting Up Price Rules for ARR / ACV / MRR / MCV Calculation
  • 50:44 Testing and Validating ARR / ACV / MRR / MCV Calculations

Definitions

MRR = Monthly Recurring Revenue

MCV = Monthly Contract Value

ARR = Annual Recurring Revenue

ACV = Annual Contract Value

NRR = Non-Recurring Revenue

Monthly Recurring Revenue (MRR) / Monthly Contract Value (MCV) Formula

IF( TEXT( SBQQ__SubscriptionPricing__c ) = "" ,
0 ,
IF( SBQQ__ProrateMultiplier__c <> 0 ,
SBQQ__NetTotal__c / ( SBQQ__ProrateMultiplier__c * SBQQ__DefaultSubscriptionTerm__c ) ,
SBQQ__NetTotal__c
)
)

Annual Recurring Revenue (ARR) / Annual Contract Value (ACV) Formula

IF( TEXT( SBQQ__SubscriptionPricing__c ) = "" ,
0 ,
IF( SBQQ__ProrateMultiplier__c <> 0 ,
12 * SBQQ__NetTotal__c / ( SBQQ__ProrateMultiplier__c * SBQQ__DefaultSubscriptionTerm__c ) ,
SBQQ__NetTotal__c
)
)

Non-Recurring Revenue Formula

IF( ISPICKVAL( SBQQ__SubscriptionPricing__c , '' ), SBQQ__NetTotal__c , 0 )

Office Hours Salesforce Revenue Cloud

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