To better support this SaaS world we live in, we've so far calculated and forecasted both the Monthly Recurring Revenue (MRR) and the First-Year Value (FYV) of our opportunities. Two more things to wrap up this series.
First, I want to track scheduled payments. And then we'll create a report to track the month-end MRR under contract, as this is a critical metric for SaaS providers.
Scheduled Payments
First, I want to track scheduled payments. And then we'll create a report to track the month-end MRR under contract, as this is a critical metric for SaaS providers.
Scheduled Payments
I want to help my finance team to tracking payments that are expected from prior-period bookings. So I've added a custom field, Payment Amount, to my Activity Object, and added that field to the Event page layout. Now when I mark an opportunity closed-won and the opportunity term exceeds 23 months, I create an Event to record the scheduled payment(s). (For my purposes, I don't create a Schedule Payment for the initial billing, though you could if you want to record all billing events in Salesforce.)
From the opportunity record, I record a new all-day event with no reminder. About all I have to fill in is the subject ('Scheduled Payment'), the date (when the payment is due) and the payment amount. For deals of three years or longer, I either repeat the process for each payment or, switching to Salesforce Classic, create a recurring event.
Month-End MRR under contract.
Finally, I want to create a report to show the total MRR under contract at the end of the prior month. This is a key metric for any SaaS business, so I want an easy way to capture it as part of my monthly reporting package.
Recall that in the first post of this series, we added two dates to the Opportunity object: First Date of PoP ('period of performance') and First Date After PoP. I have validation rules to ensure these are populated on any closed-won opportunity.
That $3150 opportunity we've been using for our calculations... I've marked that Closed-Won, with a close date of 2/18/2019. Accordingly, I set the First Date of PoP to 2/18/2019 and the First Date after PoP to 2/18/2021. Now let's consider the report criteria to total the prior month-end MRR.
I just want to total the MRR of all opportunities which
Just be sure that the MRR field is in your report, and that field is summarized via the SUM function. Save the report, and you have this measure for the prior month-end one click away (in Lightning, you could even add it to your Favorites!).
That's my set of customizations to support a SaaS business. We've added fields to the Product, Quote, Quote Line Item, Opportunity, Opportunity Product and Event objects. We've created two additional Forecast Types. And we can report on scheduled payments and month-end MRR.
From the opportunity record, I record a new all-day event with no reminder. About all I have to fill in is the subject ('Scheduled Payment'), the date (when the payment is due) and the payment amount. For deals of three years or longer, I either repeat the process for each payment or, switching to Salesforce Classic, create a recurring event.
As of this writing, you can't create recurring events in Lightning.Now it's a simple report to show the payments scheduled for any period of time.
In practice, I'd probably create a Schedule Payment record type. Then I can limit who is able to create such records and also provide a streamlined page layout.
Month-End MRR under contract.
Finally, I want to create a report to show the total MRR under contract at the end of the prior month. This is a key metric for any SaaS business, so I want an easy way to capture it as part of my monthly reporting package.
Recall that in the first post of this series, we added two dates to the Opportunity object: First Date of PoP ('period of performance') and First Date After PoP. I have validation rules to ensure these are populated on any closed-won opportunity.
That $3150 opportunity we've been using for our calculations... I've marked that Closed-Won, with a close date of 2/18/2019. Accordingly, I set the First Date of PoP to 2/18/2019 and the First Date after PoP to 2/18/2021. Now let's consider the report criteria to total the prior month-end MRR.
I just want to total the MRR of all opportunities which
- Were Won
- Began before the current month
- End during or after the current month
This is just an Opportunity report, with the following criteria:
- Opportunity Status = Closed Won
- Close Date = All Time
- First Date of PoP is less than This Month
- First Date after PoP is greater than or equal to This Month
Just be sure that the MRR field is in your report, and that field is summarized via the SUM function. Save the report, and you have this measure for the prior month-end one click away (in Lightning, you could even add it to your Favorites!).
That's my set of customizations to support a SaaS business. We've added fields to the Product, Quote, Quote Line Item, Opportunity, Opportunity Product and Event objects. We've created two additional Forecast Types. And we can report on scheduled payments and month-end MRR.
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