Why does my MRR seem "abnormal"?

In the vast majority of cases, an MRR that seems inconsistent is not due to a calculation error by Fincome, but to:

• incorrect billing data (dates, line type, amount, discount),
• a duplicate customer or subscription,
• or a specific configuration of the calculation options.

The goal is therefore to methodically trace back to the source of the figure, before any correction.

Here is a video showing the approach to follow using an example of an MRR spike.

Step 1 – Identify the origin of an MRR spike or dip

The first step always consists of precisely locating the origin of the observed variation. The method differs slightly depending on whether it is an MRR spike or an abnormal decrease.

Case 1 – An MRR spike

1. Go to Analytics > Revenue > MRR.
2. Click on the chart to display the underlying view.
3. Sort the rows by decreasing MRR.

This quickly identifies the customers contributing the most to the observed spike, and spots an MRR that is disproportionate to reality.

Case 2 – An abnormal MRR decrease

When an MRR decrease seems unexplained, two complementary analyses are recommended.

Option A – Analyze MRR by customer

1. Go to Analytics > Revenue > MRR.
2. Open the underlying view.
3. Sort the rows by increasing MRR.

This view identifies customers whose MRR is:

• abnormally low,
• partially missing.

We often speak here of customers "deprived" of MRR, due for example to an incorrect billing period, an incorrect line type, or a misinterpreted discount.

Option B – Analyze churns directly

1. Go to Analytics > Growth > MRR – ARR movements.
2. Filter on the movement type Churn (or Attrition) and Downsell (or Contraction).
3. Display the underlying view.
4. Sort by decreasing MRR amount.

The goal is to identify the biggest churns over the period, then check whether they are:

• normal and expected (an actual contract end),
• or related to a data or configuration problem

Step 2 – Check the customer page and duplicates

Once a customer is identified, click on them to access their customer page.

Points to check:

• Is the customer's MRR curve consistent?
• Are there several customers with the same name?

To check the second point:

1. Go to Data > Customers.
2. Search for the customer's name.
3. Check whether they appear once or several times.

In the event of a duplicate, compare the invoices and subscriptions: it may be a customer coming from several sources or an incorrectly attached subscription, which can create artificial MRR. In this case, you may need to consider a customer merge, or subscription merge.

Step 3 – Analyze invoices and invoice lines

Going back to the customer's page, open the associated invoices.

For each invoice line, systematically check:
The amount: does it match the contract?

The revenue type:

• subscription → generates MRR,
• one-off → excluded from MRR.

The billing period (period_start / period_end):

• the period must reflect the actual duration of the contract,
• a period that is too short or incorrect can artificially inflate or reduce the MRR.

Very common case

A subscription line with a large amount spread over a period of only a few days can create a huge MRR spike.

Correcting the period (for example over 12 months for an annual contract) is generally enough to solve the problem.

Step 4 – Check Fincome's calculation options

If:

• the line types are correct,
• the periods are consistent,
• the amounts and discounts are compliant,

then the observed gap probably comes from the way Fincome interprets this data. You then need to analyze the calculation options (Go to Settings > Calculation options).

Common case 1 – MRR continues after the end of the billed period

Symptom: An invoice whose period ended several weeks ago continues to produce MRR.

To check:

• the "MRR recognition after the end of the last billed period" option.

Depending on the chosen rule, Fincome can:

• stop the MRR at the end of the paid period,
• or continue recognizing MRR as long as the subscription is not in canceled status.

In this case, check the actual status of the subscription and the possible presence of a cancellation date.

Common case 2 – Artificial maintenance or drop of MRR between two invoices

Symptom:

• a churn followed by a reactivation,
• or MRR maintained despite a billing gap.

To check:

• the neutralization of invoice gaps and overlaps option.

This option smooths the MRR in the event of a slight offset between two billing periods, in order to avoid spurious movements.

Common case 3 – MRR impacted by discounts or credit notes

Symptom:

• an MRR lower than the expected contractual amount.

To check:

• whether all discounts are included,
• only permanent discounts,
• or completely excluded from the calculation.

A temporary discount can occasionally reduce the MRR, or even create a contraction depending on the configuration.

Common case 4 – A churn recognized too early or too late

Symptom:

• an MRR decrease on an unexpected date.

To check:
The churn recognition rule:

• at the cancellation request,
• at the effective date,
• or at the end of the last billed period.

Summary – The checklist to follow

When your MRR seems abnormal:

1. Analyze the variation via the MRR or Movements underlying view
2. Identify the customers responsible
3. Check the customer page and the absence of duplicates
4. Check the invoices and lines (amount, type, periods)
5. Analyze the calculation options and the status of subscriptions

In most cases, this method lets you understand and correct a gap within a few minutes, directly in Fincome.

FAQ – Frequently asked questions

→ Why does my MRR seem too high over a given period?
In most cases, this comes from an invoice line with an incorrect period (too short) or a large amount spread over a short time. Another common cause is a duplicate customer or subscription, which generates additional MRR.

→ Why is my MRR decreasing without any obvious churn?
An MRR decrease can come from:

• a churn or contraction on a high-MRR customer,
• a discount taken into account in the calculation,
• or a change related to the calculation options (churn recognition, end of billed period, neutralization of gaps).

Analyzing the MRR Movements generally identifies the cause.

→ Why don't I see certain churns or reactivations depending on the selected period?
Because Fincome nets MRR movements within the chosen period (monthly, quarterly, or annual). If a churn and a reactivation occur within the same period, they can offset each other. Fincome then only displays the net impact on MRR at the end of the period, for example as a contraction.

→ Why does a customer keep generating MRR even though their invoice has ended?
It depends on the MRR recognition after the end of the last billed period rule. If the option is configured to maintain MRR as long as the subscription is not canceled, Fincome will continue recognizing MRR. You then need to check the subscription's status.

→ Does an abnormal MRR necessarily mean an error in my data?
No. Very often, the data is correct but interpreted differently depending on the calculation options. That is why checking Fincome's settings is a key step once the invoices have been audited.

Updated on: 03/07/2026