Manage calculation options

1. Churn recognition

Goal: Determine the exact moment when Fincome removes a subscription's MRR after a cancellation.

Options:

At the cancellation request: the MRR is removed immediately after the termination request. Ideal for a forward-looking view of committed MRR.
At the effective cancellation: the MRR is removed at the actual cut-off date (immediate or scheduled).
At the end of the last billed period (default): the MRR is kept until the end of the already paid period. Aligns churn with recognized revenue.

For more information, you can also read our article on churn recognition.

Goal: Determine whether discounts (recurring or one-off) reduce MRR and the KPIs.

Options: Calculate MRR:

Before discount: gross value of the contract (no reduction).
Permanent discounts only: only lasting concessions are deducted; one-off promotions are ignored.
All discounts (default): all discounts are deducted to obtain a net revenue view.

Goal: Define whether and how refunds reduce MRR.

Options:

Include – retroactive: the period of the invoice linked to the credit note is adjusted downward.
Include – non-retroactive: the refund is counted as an MRR decrease at the time it is issued.
Ignore (default): refunds do not impact MRR, past or present.

Goal: Align Fincome's main clock with that of your billing tool.

Goal: Choose the metric displayed by default in dashboards and reports.

Options:

Goal: Prevent potentially unrecoverable invoices from artificially inflating the indicators.

Options:

Yes: open invoices linked to canceled or unpaid subscriptions are excluded from MRR.
No: open invoices are counted as long as they are not paid or canceled.

Goal: Smooth the MRR when the invoice is issued at the end of or after the service period.

Options:

Disabled: no smoothing; the MRR drops at the end of the period until the next invoice is received.
If the invoice date is closer to the end of the period than to the beginning, Fincome keeps the last known MRR.
If the invoice is issued ≤ 5 days before the end of the period, the MRR is maintained until the next cycle.

Goal: Define a grace period during which the MRR is simulated while waiting for the next invoice.

Options: Choose the number of days to wait before considering a churn.

Goal: Define a grace period during which an MRR is simulated pending an upcoming subscription whose effective date is close.

Options: Choose the number of days to wait before the future subscription disappears.

Goal: Connect and merge the lines of the same subscription if they are successive or complement each other.

Options:

Goal: Define how long to keep the MRR if no new invoice is issued.

Options:

Never: immediate stop after the paid period.
Indefinitely if the subscription is not canceled: tacit renewal as long as there is no explicit cancellation.
Indefinitely if not canceled and not unpaid: same, but stops if unpaid or canceled.
Until the cancellation date: MRR maintained until the known future date, with no retroactive effect.
Until the end of the commitment: MRR maintained until the contractual term.

Goal: Define the invoice statuses to include in the calculation of recurring revenue.

Options:

Open + Paid (default): commitment view: revenue is counted upon issuance unless canceled.
Paid only: cash view: revenue is only counted upon collection.
All statuses: includes even canceled / deleted invoices.

Updated on: 03/07/2026

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