Each quote line item has a net impact (for both profit & margin) that is calculated as follows:
Net = New - (Lost) + Uptick/Downtick
The elements of this equation are defined as follows:
- New — revenue associated with new services (always positive)
- Lost — revenue associated with canceled services (always negative)
- Uptick/Downtick — difference between new and old values, calculated for compound and Re-Term line items. This value might be either positive (uptick) or negative (downtick).
| Important | Lost values are always stored in Salesforce as negative dollar (or currency) amounts and displayed in the UI as negatives using the accounting notation, e.g. ($1200.00). |
The calculation of new, lost and uptick/downtick depends on the line item type as shown below:
| Line Item Type | New Revenue/Profit | Lost Revenue/Profit | Revenue/Profit Uptick/Downtick |
|---|---|---|---|
| New | MRR of the new service (defined in the price book) / Book margin (defined in the price book) | $0.00 / $0.00 | $0.00 / $0.00 |
| Cancel | $0.00 / $.00 | Current MRR of the service being canceled / Booked profit of a service | $0.00 / $0.00 |
| Replace (compound QLI) | $0.00 | $0.00 | Difference between new service MRR based on the price-book and the current MRR of the service being replaced (canceled) |
| Service Request | NA – service requests only cause non-recurring service charges | N/A | N/A |
| Re-Term | $0.00 | $0.00 | Difference between new MRR and current service MRR |
| Important | Profits are calculated based on price-book costs (a.k.a. booked costs) not real costs. |
| Quotes with product parts If services or widgets in New (or New part of Replace) contain parts, the total revenue (including the parts) is used in calculations. |
