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Salesforce Field Calculations

Overview

Listed below is information on how the MRR, ARR, TCV, and ACV fields in Salesforce are calculated.

Salesforce Field Calculations

The corresponding fields are calculated as explained below.

mrr3.png

MRR Total The cost of the plan per month.

TCV – The total contracted value (activation + MRR for contracted months). The TCV is only calculated if a contract is applied. Otherwise, the TCV is $0.

ACV The annual contracted value (activation + MRR for 12 months). The ACV is only calculated if a contract is applied. Otherwise, the ACV is $0.

ARR The annual cost of the plan.

Example of Calculations

Below is an example plan ("Plan A") and how the MRR, TCV, ACV, and ARR would be calculated.

"Plan A" Details:

Billing Interval: Quarterly

Recurring Cost: $120 p/ quarter

Activation Service: $100

  Contract Applied: 6 month  

Calculations:

MRR: 120/3 = $40

ARR: $40 x 12 = $480

TCV: 100 + (40 x 6) = $340

ACV: 100 + (40 x 12) = $580

Note: For an annual contract, the TCV, ACV, and ARR will be equal if the plan does not have an activation service. Otherwise, the TCV and ACV will be equal.

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Last modified
20:42, 20 Jul 2015

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