How is the turnover value calculated in The Layer?

The turnover value in The Layer takes into account the anticipated revenue (or turnover) value based on multiple different scenarios as outlined below.

Wholesale margin

Wholesale margin is calculated for tariffs that are billed directly via the reseller on a recurring basis. Examples include those services billed via a billing platform or that are invoiced monthly via the reseller’s accounts package.

In price books this is represented as:
Recurring sell – discounts (variable) * term

Examples:

If we sell a PSTN line with a recurring sell price of £10 * 24 the turnover value = £240
If the standard recurring sell price is amended (via variable discount) to £8 then the turnover value is £8 x 24 = £192

Ongoing revenue (OGR)

Ongoing revenue is calculated for tariffs which are predominantly billed by a third party supplier. Mobile networks use this model to provide a % of the customer revenue and this ongoing revenue value is equal to the reseller's turnover.
To set this up, ensure that the recurring buy and sell prices are identical and set 3rd party supplier billed to true.

In price books this is represented as:
Recurring sell * OGR term *OGR%

Examples:

This is because the ‘true’ turnover is that of the 3rd party billing provider (i.e. Vodafone, O2 or EE) and not the amount of revenue received by the reseller which is the percentage of the OGR paid.
Please note additional spend (overspend) is not included at this stage as this is not guaranteed and is a variable value depending on what the customer is actually billed.

Upfront payments (Commission, Bonuses & Additional funding)

Commission values and bonus values are included at 100% as is any additional funding which is in an approved state.

In price books, this is represented as commission and bonus.

Examples:

Upfront Service Charges

If you have opted to add an upfront charge to your service items, the upfront sell price will be added to turnover.

Examples:

Products

Where a customer purchases a product or contributes towards the product cost, this value will also be included in the turnover value.

In price books, this is represented as:
Product sell – discount

Examples:

---

Author: Michaela Gormanova