Use line items with deals

Once a deal has been created, you can add or edit line items associated with the deal using the line item editor. Add line items pulled from existing products or create new ones. Apply discounts and taxes and review deal amount calculations. Line items can also be used with commerce tools.

Please note: when importing line items, the associated deal amount will not be updated. If you want to update the deal amount based on a line item, manually associate the line item with the deal following the instructions outlined below.

Manage line items on deals

Add, edit or delete a line item from a deal

1. In your HubSpot account, navigate to CRM > Deals.

2. Click the name of a deal.

3. To add a line item, in the right panel, in the Line items card, click Add to add line items to a deal without line items, or click Edit to edit existing line items. You'll then be brought to the line item editor.

Please note: the Line items card, and editor, will only display up to 200 associated line items, even if more line items are associated with the deal record.

4. Click Add line item then select one of the following:
   
   • Select from product library: add a line item based on a product in your product library, including line items created using the Shopify integration.
     • In the right panel, search by product name, product description, or SKU. Click Advanced filters to refine your search.
     • Select the checkboxes next to the products you want to add, then click Add. The products in your product library won't be affected.
   • Create custom line item: this option creates a new custom line item unique to this deal.
     • In the right panel, under Line item information, enter the line item details.
     • To change the billing frequency, under Billing, click the Billing frequency dropdown menu and select a value.
     • If you've set up tax rates in your tax library, under Adjustments and Tax, click the Tax rate dropdown menu and select a rate.
     • Under Price, select the pricing model, and enter the unit price, quantity, and unit cost.
     • Select the Save line item to the product library checkbox to add the custom line item to your product library. Learn more about adding products to your product library.
     • Click Save, or Save and add another.
       
5. To edit, clone, or delete a line item, hover over the product, click Actions, then select an option:
   • Edit: edit the line item for this deal only. The product library won't be affected. You can also edit individual line item's details in the columns of the line items editor, including the term, unit price, quantity, and discount amount. Enter a new value in the appropriate column. Learn how to add or remove columns.
   • Delete: delete the line item.
   • Clone: create a new line item with the same details.
   • Reorder: click and drag a line item using the dragHandle drag handle.
6. Different deal calculations for the deal amount will display above the line item editor. The Margin and Deal amount will display based on the default deal amount selected in your account settings. Learn how deal calculations are calculated.
7. By default, billing for recurring line items will start at time of checkout. To charge your buyer for an item at a later date instead, click the Billing start date dropdown menu, then select one of the following options:
   • Custom Date: a specific date in the future. After selecting this option, use the date picker to select the start date, then click Save.
   • Delayed start (days): delay the billing start date by a number of days after checkout. After selecting this option, enter a number into the Delayed billing start by days field in the right panel, then click Save.
   • Delayed start (months): delay the billing start date by a number of months after checkout. After selecting this option, enter a number into the Delayed billing start by months field in the right panel, then click Save.
8. When you're done making changes, click Save. In the dialog box, select whether you want to update the deal amount to reflect your new line items, or save the deal without updating its amount.
   

Use line items with commerce tools

If desired, create a quote, invoice, payment link, or subscription based on the line items you've configured. In the upper right, click the Create dropdown menu and select an option. Learn more about:

• Building a quote.
• Creating an invoice.
• Configuring a payment link or subscription. 

Understand deal amount calculations

When adding line items to a deal, calculations for TCV, ACV, ARR, and MRR (including margins) are displayed above the line item editor. Up to six decimal places are supported when setting a line item's unit price in any currency. MRR, ARR, ACV and TCV are rounded based on currency's precision at checkout. For example, if a line item is $10.34 with a weekly billing frequency and no term, the calculation will be $10.34 * $4.33 = $44.7722. Currency rounding would then make the total $44.77.

Understand MRR, ARR, and TCV

Margin calculations follow the same logic as non-margin values. 

Example: review weekly billing and no term

$10 line item with Weekly billing frequency and no Term.

MRR: takes an average of ~4.33 weeks per month (e.g., $10*4.33= $43.33).

ARR: if no Term is set, defaults to one year = 52 payments (e.g., $10*52 = $520.).

TCV: If no Term is set, defaults to one year = 52 payments (e.g., $10*52 = $520.).

Example: review weekly billing and one term

$10 line item with Weekly billing frequency and a 6 week Term.

MRR: takes an average of ~4.33 weeks per month (e.g., $10*4.33= $43.33).

ARR: if a Term is set, defaults to the term length = 6 payments (e.g., $10*6 = $60.).

TCV: if a Term is set, defaults to the term length = 6 payments (e.g., $10*6 = $60.).

Example: review bi-weekly billing and no term

$10 line item with Every two weeks billing frequency and no Term.

MRR: takes an average of ~2.16 bi-weekly occurrences per month (e.g., $10*2.16= $21.60.).

ARR: if no Term is set, defaults to one year = 26 payments (e.g., $10*26 = $260.).

TCV: if no Term is set, defaults to one year = 26 payments (e.g., $10*26 = $260.).

Example: review bi-weekly billing and one term

$10 line item with Every two weeks billing frequency and a 6 week Term.

MRR: takes an average of ~2.16 bi-weekly occurrences per month (e.g., $10*2.16= $21.60.).

ARR: if a Term is set, defaults to the term length = 3 payments (e.g., $10*3 = $30.).

TCV: if a Term is set, defaults to the term length = 3 payments (e.g., $10*3 = $30.).

Add discounts and taxes to a deal

Discounts and taxes can be added to individual line items.

Add discounts

To add a discount to an individual line item:

1. Enter a discount rate in the Unit discount column. If you can't see the Unit discount column, learn how to add columns.
2. Review the summary.

Learn more about discounts.

Add taxes

To add tax to a line item:

1. Add a line item.
2. Click the Tax rate dropdown menu and select the tax rate you want to use for the line item. The Tax amount will update automatically.
3. Review the summary.

If you don't see Tax rate or Tax amount, learn how to set up your columns and review an example. You can use the Tax amount property in other tools such as segments, reporting, and workflows.

Review the line item summary

When setting up your line items, review the Summary section to understand how your buyer will be charged.

• The Subtotal will reflect only the items due at checkout. Any items that'll be charged at a later date will instead appear in the Future payments total. All items, regardless of payment due date will be totaled in the Total contract value.

• If line item discounts and taxes are applied, they'll be indicated below the Subtotal. Click the arrows next to each to see the amounts.

Please note: in reports, the currency of the line item's unit price will match the deal amount's currency. If you're using multiple currencies in your account, learn more about using multiple currencies with your line items.