Revenue Metrics Explained #

The Revenue Metrics widget on the dashboard and the Revenue Report under Services > Reports present financial data derived from service contracts. This page explains how each metric is calculated.

What DMSI Service Management Adds
These revenue metrics apply only to service contracts managed by this extension. They are separate from WooCommerce order revenue and DDLS Core license revenue.

Key Metrics #

Total Contracted Value #

The sum of the price field across all currently active service contracts.

This represents the total value of service commitments currently in effect. It does not include expired, cancelled, or suspended contracts.

Monthly Recurring Value (MRV) #

The annualized contracted value divided by 12. Calculated as:

MRV = sum(contract.price) / 12

This is a simplified approximation. It does not account for contracts with custom durations shorter or longer than 12 months. For accurate monthly revenue by contract, use the Revenue Report with a one-month date range.

Effective Hourly Rate #

The average rate being charged per service hour across all active contracts. Calculated per contract as:

effective_rate = contract.price / contract.allocated_hours

The dashboard widget shows the average across all active contracts. This metric helps identify whether service pricing is consistent with target billing rates.

Hours Consumed Value #

The imputed value of hours already consumed, calculated as:

consumed_value = hours_used * effective_hourly_rate

This approximates the value of service already delivered against each contract.

Important Caveats #

• These metrics are derived from contract data only — they do not reflect actual cash collected or invoiced amounts.
• WooCommerce order totals are the authoritative source for revenue accounting.
• Service contracts linked to WooCommerce Subscriptions inherit pricing from WooCommerce; manual price overrides on the contract record will create a discrepancy.