Yearly cost field in contracts (ast_contract) not being divided by contract duration<!-- /*NS Branding Styles*/ --> .ns-kb-css-body-editor-container { p { font-size: 12pt; font-family: Lato; color: #000000; } span { font-size: 12pt; font-family: Lato; color: #000000; } h2 { font-size: 24pt; font-family: Lato; color: black; } h3 { font-size: 18pt; font-family: Lato; color: black; } h4 { font-size: 14pt; font-family: Lato; color: black; } a { font-size: 12pt; font-family: Lato; color: #00718F; } a:hover { font-size: 12pt; color: #024F69; } a:target { font-size: 12pt; color: #032D42; } a:visited { font-size: 12pt; color: #00718f; } ul { font-size: 12pt; font-family: Lato; } li { font-size: 12pt; font-family: Lato; } img { display: ; max-width: ; width: ; height: ; } } Table of Contents DescriptionHow the value is calculated (OOB)Common misconceptions and confusions regarding the Yearly cost field (and clarifications)Example (to set expectations)Resources Description The yearly cost field is a projected value calculated only from Payment amount and Payment schedule. It does not divide the contract’s total by the number of years and it does not consider the contract’s start/end dates. This behavior is OOTB and provided by the business rule “Calculate projected costs (Reports)”. Calculate projected costs (Reports)Contract [ast_contract]Calculates the projected monthly and annual costs for a contract when costs or payment schedule changes. Business rules installed with Contract Management How the value is calculated (OOB) Yearly cost is a projection recalculated when costs or Payment schedule changes.This is done by the Business Rule “Calculate projected costs (Reports)”. “Calculate projected costs (Reports)” converts the total_cost into projected values based only on the payment schedule and does not consider contract length. Note: The projection uses the Payment schedule (for example, Annual, Monthly, Quarterly…) to express the amount per year/month. It does not amortize the contract over its duration Common misconceptions and confusions regarding the Yearly cost field (and clarifications) “Yearly cost should be Total ÷ contract years.”Yearly cost is a projection from Payment amount + Payment schedule. Contract duration is not part of this calculation.“Total cost includes the projection logic.”Total cost is calculated from Payment amount and tax fields via Calculate totals with tax scripts/rules on the Contract form. “Monthly/Yearly values change when Start/End dates change.”Start/End dates and lifecycle updates are handled by other rules (for lifecycle and history), not by the projection rule. Example (to set expectations) As highlighted earlier yearly_cost value is not calculated based on contract duration (start date to end date)For example, when the payment schedule is Annual:yearly_cost = total_costmonthly_cost = total_cost / 12So, if a contract is x years and the total_cost is entered as 100 with Annual billing, the platform interprets 100 as the annual payable projection, not the full 3-year rolled-up amount. The yearly_cost remains 100 and not 33.33. Resources Business rules installed with Contract Management