--- sourceDocument: Yokohama Sales Customer Relationship Management sourceDocumentLink: https://servicenow-prod.fluidtopics.net/r/yokohama/order-management Release : - yokohama ft:locale : - en-US ft:publication_title : - Yokohama Sales Customer Relationship Management ft:clusterId : - omgmt bundleId : - omgmt workflow : - Customer and Industry --- # Subscription revenue metrics # Subscription revenue metrics {#ariaid-title1} Release version: Yokohama Updated January 30, 2025 ![](https://www.servicenow.com/docs/portal-asset/ico-clock) 6 minutes to read Summarize ![AI sparkle icon](https://servicenow.com/docs/portal-asset/ai-sparkle-icon) Summarized using AI This content was generated using new OpenAI-powered functionality. Results are provided on an as is basis and are not guaranteed to be accurate or complete. ## Summary of Subscription revenue metrics Subscription revenue metrics in ServiceNow Sales Customer Relationship Management help sales agents and managers track, analyze, and forecast recurring revenue from subscription-based sales deals. These metrics, such as Monthly Recurring Revenue (MRR) and Annual Recurring Revenue (ARR), are automatically calculated for opportunities, quotes, and orders. They provide essential insights into the financial impact and performance of subscription contracts, enabling informed sales decisions and customer engagements. Show full answer Show less ## Key Features * **Subscription Pricing Metrics:** Include MRR, ARR, Annual Contract Value (ACV), Total Contract Value (TCV), and contract Term. These metrics measure revenue stability, growth, and total contract impact over time. * **Automatic Revenue Calculations:** The system uses product pricing (list price, net price, periodicity) and contract details to auto-calculate subscription revenue at both opportunity and quote levels. * **Opportunity Revenue Metrics:** Metrics such as cumulative one-time price, cumulative MRR, ARR, ACV, and TCV are computed per line and aggregated at the opportunity header for comprehensive deal insight. * **Quote Revenue Metrics:** Similar calculations are made for quotes, including monthly and annual recurring prices, cumulative one-time prices, and total amounts, supporting accurate quoting and forecasting. * **Order Revenue Metrics:** Include contract start/end dates, term, unit adjustments, and cumulative prices, ensuring precise revenue recognition aligned with contract durations. * **Term and Pricing Periodicity Handling:** Term values influence contract end dates and revenue prorations. Monthly and annual pricing periodicities are managed with day-based pro-rata calculations for accuracy. ## Practical Use for ServiceNow Customers By leveraging these subscription revenue metrics, ServiceNow customers can: * Monitor the health and growth of subscription revenue streams in real time. * Forecast future revenue based on current deals and contract terms. * Provide sales teams with clear, system-generated revenue figures to support pricing discussions with customers. * Compare deals using standardized revenue values like ACV and TCV to prioritize sales efforts. * Ensure consistent revenue calculations across opportunities, quotes, and orders to maintain financial accuracy. ## Additional Information Customers can find detailed guidance on using these metrics in opportunity and quote management documentation, which explains how to add and view line items and subscription revenue details within ServiceNow. Subscription pricing is a pricing model where customers pay a recurring fee for products or services, usually at regular intervals such as monthly or annually. In Sales Customer Relationship Management, various subscription revenue amounts are calculated automatically for opportunities and quotes. Subscription revenue amounts are metrics that help sales agents and sales managers track and analyze the revenue impact of sales deals. Sales agents and managers can view these system-calculated revenue amounts in the pricing details for opportunities and quotes, both at the header and line levels. These revenue amounts, such as monthly recurring revenue (MRR) or annual recurring revenue (ARR), are useful for monitoring sales performance, forecasting subscription revenue, and providing relevant subscription amounts when agents engage with customers.Figure 1. Example opportunity subscription revenue details ## Subscription pricing metrics {#som-subscription-pricing__section_wsv_lyg_1dc} In subscription pricing, common metrics for assessing subscription-based revenue include the following values and items: Monthly Recurring Revenue (MRR) : The total revenue generated from recurring subscriptions or contracts on a monthly basis. It helps sales agents and managers assess the stability and growth of subscription-based revenue streams. Annual Recurring Revenue (ARR) : The annual revenue generated from recurring subscriptions or contracts. It provides insights into the predictable revenue stream that can be expected from existing customers over a year. Annual Contract Value (ACV) : The total value of a contract on an annual basis. It highlights the annual revenue impact of a deal and facilitates comparison with other contracts or revenue streams. Total Contract Value (TCV) : The total value of a contract over its entire duration, including recurring and one-time charges. It provides visibility into the overall value of a deal and its impact on the organization's financial performance. Term : The duration or period of a subscription or contract, in months, such as 10 months or 24 months. In Opportunity Management, agents can enter a Term value before adding line items. In Quote Management, when agents enter a Term value and the contract start date, the system uses the term value and start date to auto-calculate the contract end date. If an agent changes the contract end date, the system recalculates the Term value. For products with monthly periodicity, the per-day price (pro-rate multiplier) is based on the Unit list price/number of days in the month. For a product with annual periodicity, the per-day price (prp-rate multiplier) that is multiplied against the decimal fields is the Unit price/365 days or 366 days if the year is a leap year. ## How subscription pricing revenues are calculated {#som-subscription-pricing__section_zw2_1gw_zcc} Product offers for products and services contain basic pricing information, such as list price and pricing method (either one-time or recurring periodicity). When agents add product lines to opportunities and quotes, the system uses basic pricing information and product line details to auto-calculate the various revenue subscription values. These values are calculated and displayed in both the header pricing details and line pricing details. For example, when an agent adds an opportunity line, the system calculates the Cumulative Monthly Recurring Revenue (MRR) amount using the unit net price and quantity of the product. The system then sums up the cumulative revenue to the parent line in the opportunity and displays the cumulative MRR in the pricing details of the opportunity header. When agents use the configuration UI to add customizable products to quotes, the configurator interface displays the calculated subtotal values such as the Cumulative Monthly Recurring price for the root product offer of the line item. The following tables describe the subscription pricing revenue amounts for opportunities and quotes and how they're calculated.{#som-subscription-pricing__table_fmj_l32_1dc__entry__3} | Opportunity line subscription metric | Description | Calculation | |-|-|-| | Unit net price | Price of a single unit. | Unit list price - pre adjustments | | Cumulative one-time price | One-time price of the opportunity line and any child lines. | Unit net price \* Quantity | | Cumulative MRR | Cumulative monthly recurring revenue of the opportunity line and any child lines. Not calculated for one-time products. | * If the periodicity is monthly: Cumulative MRR = Unit net price \* Quantity * If the periodicity is annual: Cumulative MMR = (Unit net price/12 months) \* Quantity {#som-subscription-pricing__ul_agr_wn2_1dc} | | Cumulative ARR | Cumulative annual recurring revenue of the opportunity line and any child lines. Not calculated for one-time products. | Cumulative MRR \* 12 months | | Cumulative ACV | Cumulative annual contract value of the opportunity and any child lines. | Cumulative One-time price + Cumulative ARR | | Cumulative TCV | Cumulative total contract value of the opportunity and any child lines. | Cumulative One-time price + (Cumulative MRR \* Term months) | [Table 1. Opportunity line subscription revenue metrics] {#som-subscription-pricing__table_fmj_l32_1dc} {#som-subscription-pricing__table_csw_cn2_1dc__entry__3} | Opportunity header subscription metric | Description | Calculation | |-|-|-| | Amount | The total contract value. | Total contract value if there are opportunity line items. If no line items exist, this amount is copied from the Estimated Deal Size. | | Weighted amount | Value that represents the potential size of a deal. | Amount \* Probability | | Total One-Time Price | Sum of all the cumulative one-time prices of the opportunity line items. | Cumulative one-time price of the top-level parent | | Total MRR | Total monthly recurring revenue. | Sum of the Cumulative MRR values of the top-level parent. | | Total ARR | Total annual recurring revenue. | Sum of the Cumulative ARR of the top-level parent. | | Total ACV | Total annual contract value. | Sum of the Cumulative ACV of the top-level parent. | | Total TCV | Total contract value. | Sum of the Cumulative TCV of the top-level parent. | [Table 2. Opportunity header subscription revenue metrics] {#som-subscription-pricing__table_csw_cn2_1dc} {#som-subscription-pricing__table_sdq_tcy_1dc__entry__2} | Quote line subscription metric | Calculation | |-|-| | Monthly recurring price | * If periodicity is monthly: Monthly recurring price = Unit net price \* Quantity * If periodicity is annual: Monthly recurring price = (Unit net price/12) \* Quantity {#som-subscription-pricing__ul_wyf_wcy_1dc} | | Annual recurring price | Monthly recurring price \* 12 months | | Cumulative net price | Unit List Price - Total adjustment | | Cumulative one time price | One-time price for the line item + (if parent line item) One-time price for all child line items | | One-time price | One-time price for the line item. | [Table 3. Quote line subscription revenues] {#som-subscription-pricing__table_sdq_tcy_1dc} {#som-subscription-pricing__table_st2_tjv_1dc__entry__2} | Quote header subscription metric | Calculation | |-|-| | Term | The duration in months for subscription or contract. If an opportunity exists, the value comes from the opportunity. Otherwise, the default term is 12 months. | | Total one-time price | Sum of all parent lines. | | Total monthly recurring price | Sum of the Cumulative monthly recurring price of all root parent lines. | | Total annual recurring price | Sum of the Cumulative annual recurring price of all root parent lines. | | Total amount | Sum of the Cumulative net price of root parent lines. | [Table 4. Quote header subscription pricing] {#som-subscription-pricing__table_st2_tjv_1dc} {#som-subscription-pricing__table_kk2_h1w_vfc__entry__2} | Order line subscription metric | Calculation | |-|-| | Term | Contract end date - Contract start date | | Contract start date | The start date of having access to the service or product | | Contract end date | The end date of having access to the service or product | | Unit adjustment | Total adjustment/Quantity | | Monthly recurring price | * If periodicity is monthly: Monthly recurring price = Unit net price \* Quantity * If periodicity is annual: Monthly recurring price = (Unit net price/12) \* Quantity {#som-subscription-pricing__ul_yrr_g5j_wfc} | | Annual recurring price | If pricing method is recurring: Monthly recurring price \* 12 months | | Cumulative monthly price | Monthly recurring price for the line + (if parent line item) sum of all monthly recurring price of immediate child lines | | Cumulative annual price | Cumulative monthly recurring price \* 12 | | Cumulative Net Price | \[One time price + (Monthly recurring price \* Term)\]+(if parent line item) sum of all Cumulative net price for immediate child lines | [Table 5. Order line subscription revenue metrics] {#som-subscription-pricing__table_kk2_h1w_vfc} To learn more about the revenue metrics in opportunity details, see [Add and view the details of an opportunity](https://servicenow-prod.fluidtopics.net/crJ1KLoJ7QO~l7py~EckYw "Use the Details tab to add and view information about your opportunity, including the source and competitor.") and [Add line items to an opportunity](https://servicenow-prod.fluidtopics.net/HG0KOH4kHyFkcW1tC9yGtQ "Create a new product line item for your opportunity by entering the details, such as product offering and quantity."). To learn more about the revenue metrics in quote details, see [Add and view details of a quote](https://servicenow-prod.fluidtopics.net/FZ724vJf0YEgGuE4A0gn_w "Use the Details tab to add and view basic information for a quote.").