3638808 - Actual Cash Value (ACV) Calculation Logic at Opportunity Item Level

The calculation for Actual Cash Value (ACV) at Opportunity Item Level is not clear

SAP Sales Cloud V2

1. Open any Opportunity and add a Product
2. Set the Total Cash Value (TCV) to 50,0000 and the contract period to exactly two years
3. Observe as the ACV is calculated as 25,000
4. Set the contract period to end 6 months earlier
5. Observe as the ACV is calculated as 33,333.33

The ACV calculation is Total Cash Value divided by Contract Period.

If the Contract Period is not a round number (i.e. not an exact year), it will be divided by the equivalent percentage of the year.  So if the Contract Period is 1 year and 6 months, the formula will be 50,000 / 1.5 = 33,333.33

acv, actual cash value, acv calculation, total cash value, tcv , KBA , CEC-CRM-GS , Guided Selling/Opportunity for SAP Sales/Service Cloud , Problem