When renewing a customer contract early, it may be useful to include lost profit from the original contract in your profit calculations.
The Layer has the capability to calculate this figure and automatically apply it to the new quotation.
Linking existing assets to new opportunities and quotation lines
The existing assets that you want to include in the calculation must be added to the new opportunity, so that it can be carried through to the quotation. For more information on adding assets to opportunities please see the article here.
Raising a quotation from a renewal opportunity will allow the remaining profit on those services - based on margins or remaining OGR - to be deducted from the profits on the new quotation.
Deal termination values on a quotation
If auto calculation is enabled in your instance of The Layer, the Deal Termination figure will be added as soon as you create the quotation.
If this setting is not enabled, you can add the deal termination value by clicking on the highlighted button, then + New Deal Termination, and selecting Auto-calculated Deal Termination from the Element Type dropdown. The Value will be auto-populated.
Refreshing a deal termination value
The deal termination value is calculated based on the day that the line is added to the quotation. If your quote is not finalised on the day of creation, you may wish to refresh the value.
This can be done with the icon next to the value.
There are some options relating to deal termination from Settings - Company Setup - Quotations and Sales. The available settings are:
Include child assets in deal termination values
Enable this if the services you have added to the opportunity have bolt-on or child services, and you would like to include their remaining profit in the deal termination as well as the main tariff.
Allow only one-to-one asset to new service mappings
Use this if you would want users to only be able to map the existing tariff (added to the opportunity) to one new service. Otherwise, users will be able to attach the item to more than one new service, averaging the deal termination cost against the two tariffs.
Add auto-calculated deal termination by default to quotes created
This option will mean that the deal termination value is added as soon as the quotation is created. Please note, this will mean that the quotation generates with an initial negative profit.
If you would like more information on mapping opportunity assets to new tariffs, check this link - Mapping opportunity assets to new tariffs.
If you know how to do this, but your product classifications don't currently support mappings, check this link - Enabling opportunity asset mapping for a product classification.