What it is
Measured. The figures on the Contract intelligence page are counts and sums over contract records, worked out every morning by fixed, written rules. Nothing on the page is estimated and nothing is weighted, so the same billing and the same deals always give the same figures. This article is the one the page’s how it is calculated link opens. It sets out each rule in turn. Two of the figures are published values with their own definitions — contract coverage and contracted ARR. The rest are figures on the page.A contract record for every subscription
Once Setup says Start from billing, every subscription in your billing gets a contract record. The record carries what billing knows: the customer, the start date, the product, and what the subscription brings in a year. It is marked as resting on billing alone until the signed contract or your standard online terms are added. The billing interval and the renewal date are copied when billing holds them, never guessed. The record is Active while billing says the subscription is running, and Ended when billing says it has stopped. Every open deal gets a draft record — the same record a signed contract becomes, filled in as the deal moves. It is named Draft from the deal, sits in the status In the pipeline, carries the deal’s amount, and takes its term and billing interval from the deal where the deal holds them. When a deal is no longer open, its draft is left exactly as it is: whether the deal was won or lost is not something Beacon’s records carry yet. The customer on a record is the one billing links the subscription to. Where billing holds only the customer’s key and no link, Beacon finds the customer by that key.The yearly value
Each record carries one line per product. For a record opened from billing, the line is priced at what the subscription brings in a year as billing holds it for the latest billing month — the calendar month before the morning run. If billing holds no revenue for that month, no line is written. For a draft, the line is the deal’s amount. The yearly value is your data store’s own sum over the lines. Beacon’s code never adds it up. That is the line every Beacon figure keeps to: the morning run copies facts and counts them; the arithmetic that produces a value lives in the store, where it can be reproduced.Coverage, both ways
Every subscription in billing should rest on a contract. Coverage counts, for your running subscriptions, how many rest on a signed contract, how many on your standard online terms, and how many are missing one — resting on billing alone. The missing list is shown largest first, each with Add contract. The reverse check counts signed contracts that no running subscription is billing. A contract that is signed but has not started is expected. Billing that stopped before the contract ended is revenue to check with Finance. A small-business customer who signed up online accepted your terms of service at sign-up; Beacon records those terms as that customer’s contract once Use online terms is applied.Terms you type in are never overwritten
Terms typed into Add contract — the term, renewal date, billing, payment terms and discount — are saved with their source marked Typed in, and saving them counts the subscription as resting on a signed contract. The morning run never changes a term a person typed in or that was read from a signed contract. It writes only the fields it owns, and only when they differ from what the store holds, so a quiet night writes nothing but the morning’s totals. Nothing is ever deleted.Other currencies
A contract in a currency other than the one you report in is converted into your reporting currency, and both values are kept.
The rates are the European Central Bank’s euro foreign exchange reference rates, held by Beacon. The ECB states that its reference rates are published for information purposes only and that using them for transaction purposes is strongly discouraged. Beacon uses them to make contracts comparable in one currency, not to settle anything.
The 12 months ahead
For the twelve months starting with the month of the morning run, for the whole company, each size group and each customer-fit band:- Signed is each running contract’s yearly value ÷ 12, for every month inside its term. A contract’s term ends at its renewal date, or at its start plus its term in months when the record holds both. A contract with neither is left out of every month and counted — which is every record opened from billing until your contracts carry a renewal date or a term.
- Renewing is the value that has passed its term end, weighted by the standard chance of renewing for that contract year: 80% at the end of a paid pilot, then 90% for year 1, 95% for year 2, 96% for year 3, 97% for year 4 and 97.5% from year 5. The chance is applied once for the year the contract renews into — never compounded month by month inside the window. The contract year is counted from the start date to the renewal date; a contract with no start date has no year and is left out and counted.
- New business is not included here. It comes from Sales capacity, which is not built.
Not yet calculated
How the following are scored is not yet written down, so the page says Not yet calculated rather than showing a number:- Contract health — four of its five parts (complete, within the guardrails, close to its template, renewal confidence) have no rule yet for turning what Beacon reads into a score from 0 to 100, and the fields each deal stage needs are not listed.
- Forecast confidence, which rests on three of those parts.
- Template alignment and the guardrail check — there are no contract templates yet, only the ones suggested from billing.
- The alerts, every one of which needs a score.
Where it comes from
How fresh it is
Once a day, after your tools have synced. The run reads the latest closed billing month — the calendar month before the day it runs — and dates every total with the day it ran. The page shows when it last ran. A figure read between two runs is the previous run’s figure. When terms are typed in, Coverage’s list moves at once; its totals move at the next run. Every figure carries the run it came from, the version of the rules it was worked out under, and what was read — so a figure can be reproduced from the same inputs.Currency and rounding
Contract values are stated in your single reporting currency once converted; the original amount in its own currency is kept beside it. A converted line is rounded to cents. Coverage figures are counts and carry no currency.What it is not
- Not a forecast of what each customer will do. The 12 months ahead apply fixed standard chances; nothing in it is estimated for a particular customer.
- Not your accounting. The yearly value is what billing says a subscription brings in a year, not revenue recognised or invoiced.
- Not a score. Contract health, forecast confidence and the guardrail check are designed and not calculated; the page says so rather than showing a number.
- Not a change to your tools. Beacon writes nothing into billing or your CRM. Terms typed in live in Beacon’s own contract record.
- Not the renewal date itself. The renewal date is read from billing or typed in; this module reads it and never writes it. Where a term end is worked out from a start date and a term, it is used only to draw the 12 months ahead.