I’m looking for some guidance/best practices around how to manage the below scenario, whilst using Opportunities to manage and report on all of our deals (renewals, mid-subscription upsells, one-off deals) for our existing customer base; 

• We have a number of customers on multi-year subscriptions where increases in their ARR can occur between the years of their subscription. Example: If a customer is on a 3 year subscription with us, but as the end of their year 1 cycle is coming to an end, they agree to increase their ARR with us with 5k, then for their second year their ARR increases with 5k.  
• Question: how should we update/use the renewal opportunity so that the upsell is showing in our financial reporting accurately? Should we; 
  • Keep using the same renewal opportunity and change the target AND forecast amount when the ARR increase comes in (so increase both with the 5k when year 2 starts) => however, then we can’t track that there has been an upsell taking place between the first and the second year. 
  • Set up a separate opportunity with the category “mid-subscription upsell” (so different to the opportunity that has the category “renewal”) with only the 5k increase. And then also update the existing renewal opportunity’s target AND forecast amount when year 2 starts. => this would be similar but at least shows in our reporting that the customer’s ARR has increased between year 1 and year 2. 
  • Something different? 

We look forward to hearing how others manage this with their reporting.