Hi everyone,
I’m reposting this post by another HubSpot user as my company has the same issue and I’m missing solutions on the original post.
I look forward to your input 🙂
_________
My company sells both recurring revenue items as well as one-time revenue items. A deal could have just recurring revenue line items, just one-time revenue line items or a combination of recurring and one-time revenue line items within one deal. Also, upgrades, downgrades, churns, or purchases of new line items can happen in the middle of a contract.
I know there is Hubspot’s RR functionality but I don’t think it works best and I also do not think it’s easy to report using it. I’m taking an example of a case and explaining my understanding of what needs to be done if I use the RR functionality. Please correct me if I’m wrong.
Example:
1) On 01 Jan 2023, a Customer A purchases 2 products within a deal where product 1 is a recurring item for $10K MRR purchased for 24 months and product 2 is one-time item for $2K. For this I create a deal #1 with RR deal type as ‘New’ and RR amount as ‘$120K’ (in ARR). I leave RR inactive date and RR inactive reason empty at this point.
2) On 15 Feb 2023, the customer upgrades product 1 by $1K MRR. Now I create a deal #2 with RR deal type as ‘Upgrade’ and RR amount as ‘$132K’ and leave RR inactive date and RR inactive reason empty at this point. After this, I locate deal #1 and update RR inactive date as ’15 Feb 2023′ and RR inactive reason as ‘Upgrade’.
3) On 01 Jun 2023, the customer downgrades product 1 by $2K MRR. Now I create a deal #3 with RR deal type as ‘Downgrade’ and RR amount as ‘$108K’ and leave RR inactive date and RR inactive reason empty at this point. After this, I locate deal #2 and update RR inactive date as ’01 Jun 2023′ and RR inactive reason as ‘Downgrade’.
4) On 01 Jan 2025, the customer renews product 1 for 1 year. Now I create a deal #4 with RR deal type as ‘Renewal’ and RR amount as ‘$108K’ and leave RR inactive date and RR inactive reason empty at this point. After this, I locate deal #3 and update RR inactive date as ’01 Jan 2025′ and RR inactive reason as ‘Renewal’.
5) On 01 Jan 2026, the customer churns. Now I locate deal #4 and update RR inactive date as ’01 Jan 2026′ and RR inactive reason as ‘Churned’.
My questions:
1. Is my understanding correct?
2. How do I report using this outside Hubspot? Seems quite complex to me as I need to look at both close date and RR inactive date to decide whether to count a deal within a time period or not.
3. In the example above, I would report $132K as Upgrade in Feb 2023 but really the upgrade was only for $12K in Feb and the new deal for $120K was closed in Jan 2023. But wouldn’t hubspot’s RR report show all of $132K as existing revenue in Feb 2023?
I want to be able to report two things:
1. Show the gross revenue added/removed every month broken down by – new ARR added, upgrade ARR added, downgrade ARR, churn ARR.
2. Show the accumulated ARR of the customers for the company at the start of every month.
@Victor_Becerra
@karstenkoehler