Invoice disjunctions / overlaps

Correct MRR errors related to billing disjunctions and overlaps with Fincome. Learn how to adjust your settings for accurate tracking.

This article describes how the "Neutralization of billing gaps and overlaps" setting works. You can change this setting on your dashboard in the Settings > Calculation Options.

1. Invoice gap

An invoice gap corresponds to an interruption between two successive invoices for a subscription. This means that after one invoice expires, there is a period with no active billing before a new invoice begins. This situation typically occurs in annual SaaS when the customer renews their subscription late, creating a temporary billing hole.

2. Invoice overlap

An invoice overlap occurs when two invoices (usually for the same subscription or customer) cover periods that partially overlap. In other words, a new billing period starts before the previous one ends, creating a temporal overlap.

3. Options in Fincome to correct these situations

To avoid these issues, Fincome provides specific calculation settings that automatically adjust the handling of billing overlaps and gaps. These options, accessible via Settings > Calculation Options on your Fincome Dashboard, allow you to neutralize these situations and make your revenue metrics more reliable. By clicking on "Neutralization of gaps and overlaps", you can:

• Neutralize overlaps only

• Neutralize gaps only

• Neutralize overlaps and gaps

These options will only work when the invoices that cause a gap or an overlap are linked to the same subscription. Otherwise, for the rule to work, you will likely need to connect the subscriptions.