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In a specific scenario, user is creating a quote with a start date of 28th Feb 2019 for annual charge and the TCV value is different if any other date in February is chosen. Please check below the solution section for further explanation.
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Find below explanation on How TCV is calculated on Quote metrics for a leap year with above example.
MRR= 1895.8334
Calculation for the 11 months -> 1895.8334* 11 (months) = 20854.1674
Calculation for the last month - >(1895.8334/29 days(2020 is leap year)) * 28 Days = 1830.4598
Final TCV --> 20854.1674 + 1830.4598 = 22684.6272
This is happening because the "28/02/2018 - 27/02/2019" is not a full year in this case, when the term is 28/02/2019 - 27/02/2020. The full year in this case would be 28/02/2019 - 28/02/2020, because 2020 is a leap year.
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Find below explanation on How TCV is calculated on Quote metrics for a leap year with above example.
MRR= 1895.8334
Calculation for the 11 months -> 1895.8334* 11 (months) = 20854.1674
Calculation for the last month - >(1895.8334/29 days(2020 is leap year)) * 28 Days = 1830.4598
Final TCV --> 20854.1674 + 1830.4598 = 22684.6272
This is happening because the "28/02/2018 - 27/02/2019" is not a full year in this case, when the term is 28/02/2019 - 27/02/2020. The full year in this case would be 28/02/2019 - 28/02/2020, because 2020 is a leap year.
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Re: TCV calculation for leap year.
Hi Jyoti,
Do we need to do anything to prevent this?
i.e. will this cause any problems or pro-rated invoices next year?
Thanks
Chris
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Re: TCV calculation for leap year.
In a specific scenario, start date is 2/28/2019, Initial term is 12
MRR= 156 and there is one time charge with price 25
Below is break down of calculation
TCV accounts to calculate based on month first
Calculation for the 11 months -> 156* 11 (months) =1716
Calculation for the last month - >(156/29 days(2020 is leap year)) * 28 Days = 150.62
TCV for recurring --> 1716+150.62 = 1866.62
TCV for one time = 25
Total TCV = 1866.62+25 = 1891.62
Since the quote start date is 2/28, it is being prorated. If you would like to see full month instead of proration, it can be resolved by setting start date as March 1st
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