Contribution after displacement
Management review required
The booking earns R 35 000,00 before displacement (35.0% contribution margin). Alternative special-date business gives up R 45 000,00. The venue is left with -R 10 000,00 against its R 10 000,00 required return.
Booking contribution margin before displacement
35.0%
Revenue less direct delivery costs, divided by revenue, excluding tax. This amount still needs to cover overheads. Lost alternative business is deducted separately below.
- Booking event contribution
- R 35 000,00
- Less: space / other displacement
- R 45 000,00
- Contribution after displacement
- -R 10 000,00
- Required contribution after displacement
- R 10 000,00
All bridge figures exclude indirect tax. Price improvement at unchanged delivery cost: R 20 000,00 excluding tax / R 23 000,00 including tax. Other approval conditions remain separate.
Spaces used and time required
| Resource | Hours used | Quantity | Contribution recovered if released |
|---|
| Main venue | 8 hours use 10 hours including setup and turnaround | 1 | R 45 000,00 |
Releasing-resource values are separate counterfactuals and must not be added together. The contribution bridge uses one feasible opportunity portfolio, including combined configurations.
Special-date rules and separate return checks
Pass · Normal booking contribution margin: 35.0% against 25.0%. Contribution before displacement and overheads divided by revenue, excluding indirect tax.
Fictional local festival · high
Nearby fictional event · Synthetic Finance-approved special-date review.
The venue requires 40% booking contribution margin on these dates, compared with its illustrative normal 25% target. Alternative business uses separately evidenced special-date pricing.
Review required · required contribution after displacement: actual -R 10 000,00; threshold R 10 000,00. Direct contribution less displaced and separately evidenced protected opportunity.
Review required · booking contribution margin before displacement: actual 35.00%; threshold 40.00%. Booking revenue less direct delivery costs, divided by booking revenue, excluding tax and before displacement. Overheads are still to be covered.
Calculated alternatives
Increase conference package valueZAR 20 000,00 more excluding tax (ZAR 23 000,00 including tax)
Contribution after displacement ZAR 10 000,00; meets the resource rules
Incremental value improves by ZAR 20 000,00
Direct delivery costs and competing demand remain unchanged. Customer accepts the price and final settlement change. All remaining rule checks still apply.
Meet only the 40% margin floorIncrease the booking value to R 108 333,34 excluding VAT.
-R 1 666,66 after displacement · still needs review
R 8 333,34 change in net contribution
Direct delivery costs and competing special-date business are unchanged. Passing the margin floor can still leave insufficient contribution after displacement.
Choose a normal-demand dateUse a date outside the protected period with separately reviewed demand.
R 17 000,00 after displacement · meets the resource rules
R 27 000,00 change in net contribution
The alternative contribution remains R45,000, with a separately stated 40% demand probability. The special-date margin rule no longer applies; normal venue policy and other approvals still apply.
Independent Finance review
Save the quote revision, then request review of this exact calculation. The maker and requester cannot approve their own protection exception. A changed quote or policy requires a fresh revision.
Synthetic demonstration only; no approval or booking is executed.
Assumptions and calculation lineage
- Synthetic reviewed same-period demand; direct costs and prices exclude VAT. No real forecast is asserted.
- Booking contribution margin is measured before displacement and overheads; net value after displacement is a separate Rand amount.
- Legacy minimumMargin continues to mean opportunity-adjusted margin; the explicit minimumContributionMargin rule measures direct booking contribution.
- Repeat-business concession is a separate what-if scenario; future business is never included in current contribution.
- All contribution and floor amounts exclude indirect tax.
- Expected competing contribution is supplied contribution × evidenced probability; no demand forecast is invented.
- Opportunity cost is the best feasible alternative portfolio before less after allocating this bundle.
- Setup, breakdown and turnaround buffers consume the configured physical units.
- Protected opportunity is a separately evidenced increment; overlapping events with the same evidence reference use the highest amount once.
- Ancillary contribution is allocated within the existing booking total, never added twice.
- Commercial protection operates only within PP; no PMS reservation is blocked.
Policy synthetic-resource-decisions-v2 · pp-resource-protection-1.1.0 · 2026-10-01T06:00:00+02:00
Underlying evidence and exact calculation inputs
{
"quote": {
"quoteReference": "golden-special-dates",
"eventBusinessType": "Conferences",
"revenueExVat": "100000",
"eventFixed": "0",
"riskBufferPct": "0",
"allocatedCapacityFixed": "0",
"renewalReserve": "0",
"targetPolicy": {
"venueWide": "0.25",
"byBusinessType": {},
"confirmed": true
},
"recipeIngredients": [],
"nonRecipeDirectVariable": "65000",
"roomBlock": null,
"market": {
"state": "NOT_APPLICABLE"
},
"approvedGrossContractTotal": "115000.00",
"paymentSchedule": [
{
"id": "deposit",
"date": "2026-10-01",
"amount": "30000",
"baseView": "Committed",
"probability": null,
"role": "deposit",
"evidence": "Synthetic agreed deposit"
},
{
"id": "delivery",
"date": "2026-10-14",
"amount": "-65000.00",
"baseView": "Committed",
"probability": null,
"role": "delivery_payment",
"evidence": "Synthetic supplier timing"
},
{
"id": "balance",
"date": "2026-10-17",
"amount": "85000.00",
"baseView": "Committed",
"probability": null,
"role": "final_settlement",
"evidence": "Synthetic final settlement"
}
],
"cashPolicy": {
"asOfMonday": "2026-09-28",
"openingCash": "250000",
"minimumBuffer": "50000",
"stressReceiptDelayDays": 7,
"stressCostIncrease": "0.1"
},
"confidenceComponents": [
"90",
"90",
"90",
"90",
"90"
],
"confidenceCaps": [],
"approvalEvidence": {
"exactEconomicMatch": false,
"capacity": false,
"viability": false,
"cashTerms": false,
"unresolvedCriticalAlerts": false
},
"costBasis": "Current",
"evidence": "Fictional Demo Estate conference example. Bedroom inventory is not used in these two decisions.",
"resourceBundle": {
"policyVersionId": "synthetic-resource-decisions-v2",
"bookingDate": "2026-10-15",
"bookedAt": "2026-10-01",
"discountExVat": "0",
"ancillaryContributionExVat": "0",
"targetIncrementalExVat": "10000",
"evidence": "Synthetic reviewed same-period demand; direct costs and prices exclude VAT. No real forecast is asserted.",
"requests": [
{
"id": "main",
"resourceId": "ballroom",
"start": "2026-10-15T09:00:00+02:00",
"end": "2026-10-15T17:00:00+02:00",
"quantity": 1,
"attendees": 120,
"sellingValueExVat": "100000"
}
],
"demandReviewedResourceIds": [
"ballroom",
"ballroom-a",
"ballroom-b",
"oak",
"pine"
],
"alternatives": [
{
"id": "festival-function",
"name": "Alternative function at special-date prices",
"requests": [
{
"id": "festival-function-window",
"resourceId": "ballroom",
"start": "2026-10-15T09:00:00+02:00",
"end": "2026-10-15T17:00:00+02:00",
"quantity": 1,
"attendees": 120,
"sellingValueExVat": "0"
}
],
"sellingValueExVat": "100000",
"directCostExVat": "55000",
"contributionExVat": "45000",
"probability": "1",
"datePricingEvidence": "Synthetic same-festival-date quote: R100,000 revenue less R55,000 direct costs; 45% contribution margin.",
"evidence": "Synthetic supported competing booking; probability 100% for illustration."
}
]
}
},
"policy": {
"currency": "ZAR",
"minimumBookingContributionMargin": "0.25",
"indirectTaxRate": "0.15",
"timezoneOffset": "+02:00",
"versionId": "synthetic-resource-decisions-v2",
"resources": [
{
"id": "ballroom",
"name": "Main venue",
"type": "ballroom",
"capacity": 400,
"parentId": null,
"inventoryUnits": [
{
"key": "ballroom-a",
"capacity": 1
},
{
"key": "ballroom-b",
"capacity": 1
}
],
"setupMinutes": 60,
"breakdownMinutes": 30,
"turnaroundMinutes": 30
},
{
"id": "ballroom-a",
"name": "Main venue A",
"type": "ballroom",
"capacity": 200,
"parentId": "ballroom",
"inventoryUnits": [
{
"key": "ballroom-a",
"capacity": 1
}
],
"setupMinutes": 60,
"breakdownMinutes": 30,
"turnaroundMinutes": 30
},
{
"id": "ballroom-b",
"name": "Main venue B",
"type": "ballroom",
"capacity": 200,
"parentId": "ballroom",
"inventoryUnits": [
{
"key": "ballroom-b",
"capacity": 1
}
],
"setupMinutes": 60,
"breakdownMinutes": 30,
"turnaroundMinutes": 30
},
{
"id": "oak",
"name": "Oak breakout",
"type": "ballroom",
"capacity": 80,
"parentId": null,
"inventoryUnits": [
{
"key": "oak",
"capacity": 1
}
],
"setupMinutes": 60,
"breakdownMinutes": 30,
"turnaroundMinutes": 30
},
{
"id": "pine",
"name": "Pine breakout",
"type": "ballroom",
"capacity": 80,
"parentId": null,
"inventoryUnits": [
{
"key": "pine",
"capacity": 1
}
],
"setupMinutes": 60,
"breakdownMinutes": 30,
"turnaroundMinutes": 30
}
],
"events": [
{
"id": "festival",
"name": "Fictional local festival",
"startDate": "2026-10-15",
"endDate": "2026-10-17",
"location": "Nearby fictional event",
"significance": "high",
"resourceIds": [
"ballroom"
],
"types": [],
"notes": "The venue requires 40% booking contribution margin on these dates, compared with its illustrative normal 25% target. Alternative business uses separately evidenced special-date pricing.",
"evidence": "Synthetic Finance-approved special-date review.",
"rules": {
"minimumContributionMargin": "0.40",
"minimumIncrementalContributionExVat": "10000",
"approvalRole": "finance_adviser"
}
}
]
}
}