Why is there a difference between TCV and TCB Values ?
For a subscription( A-S01414961) that the Zuora TCV is showing an amount higher than what's been fully billed on the subscription.
Attached below is a TCV and TCB export for the mentioned subscription. Everything has been billed on the subscription, so I would expect TCV and TCB to match (TCV is higher by roughly $8k). Do we know why this is?
By design TCV and TCB values might not be the same, the same could be found in the below article.
How TCB and TCV are calculated?
Charge # C-01484722
Total charge Value= 10.07*17545
MRR value =176678.15/12=14723.179166667
Below is how the system calculates TCV
The charge is trigger on 2/21/2019, its start date is 02/21/2016 and end date is 01/01/2020
1. interval months: 10 months.
2. Partial Date = Start Date + Interval Months = 12/21/2019
3. Interval Date = End Date - Partial Date = 01/01/2020 - 12/21/2019 = 11 days
4. Base Days = (Start Date + Interval Months + one month) - Partial Date = (21/02/2019 +10+1)-12/01/2020 = (21/01/2020-21/12/2019)=31 days
5. TCV = MRR x ( interval Months + (Interval Date / Base Days)) = MRR * (10 + 11/31)
Below is how the system calculates TCB
Total_amount = Price_per_month * (Number_of_full_months +(Prorated_days/Actual_number_of_days_of_the_prorated_month) )
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