Recurring and Non-recurring Profit Calculations

The following rules apply to quote line item profit calculations:

  • For new line items (or new parts of Replace or Re-Term), new MRR is always ‘booked’ MRR (i.e., price-book sourced)
  • Old MRR and Old MR Profit are always then-current values read from the service
  • Old MR Profit is always a gross profit, as price book profit is gross by nature

For Re-Term quote line items, the Monthly Recurring Profit Uptick/Downtick is a difference between:

(New MRR - Service::Cost of Elements) - (Old MRR - Service::Cost of Elements)

which in turn equals to:

(New MRR - Old MRR)

What this means, is that for a Re-Term service costs remain constant (as no service elements are changed), only the revenue changes.

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