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Why is there a difference between TCV and TCB Values ?

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Why is there a difference between TCV and TCB Values ?

Question :

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?

 

Answer:

 

By design TCV and TCB values might not be the same, the same could be found in the below article.

 

https://knowledgecenter.zuora.com/BC_Subscription_Management/Orders/AA_Overview_of_Orders/Key_Metric...

 

How TCB and TCV are calculated?

 

Charge # C-01484722
Version 2
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)

TCV=14723.179166667 *(10+(11/31))=152456.145564516

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) )

TCB=MRR *(10+(8/28))
      =14723.179166667*(10+(8/28)) =151438.41    






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