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# Intra-period netting

# The key principle: MRR is a snapshot at the end of the period

In Fincome, MRR is **always calculated as the state of recurring revenue at a snapshot date**, which corresponds **to the end date of the analyzed period**.

In other words, Fincome does not answer the question

> *What happened during the period?*

but the question

> *What is the state of the MRR at the end of this period?*

It is this principle that explains why movements (churn, reactivation, expansion, contraction) can appear or disappear depending on the chosen granularity.

# The netting of movements according to the chosen period

Fincome applies **intra-period netting** to MRR movements, according to the selected granularity:
* **Monthly**
* **Quarterly**
* **Annual**

#### Example: churn then reactivation over the year

A customer:
* churns in **January**
* comes back in **April** with a lower MRR

**📅 Monthly view**
* January: **churn**
* April: **reactivation**
* Both movements are visible separately

**📆 Quarterly view**
* Q1: **churn**
* Q2: **reactivation**
* The movements remain visible, but aggregated by quarter

**🗓️ Annual view**
* **No churn or reactivation visible**
* Instead, Fincome displays a **net contraction**

Why? Because at the **end of the year**, the customer is indeed active, but with a lower MRR than at the start of the year.

# Intra-month netting: the basic rule

The **monthly granularity is currently the smallest granularity available in Fincome**. This means that **everything that happens within the same month is automatically netted**.

#### Example: invoice gap within the month

*A customer has:*
* *an invoice ending on* ***01/06***
* *a new invoice starting on* ***01/09***

***Between January 6th and January 9th***
* *The customer is temporarily without MRR*
* *Fincome may display a churn* ***as long as the month is not over***

***From January 9th (and at the end of the month)***
* *The customer has MRR again*
* ***The churn disappears***
* *The MRR is considered active for January*

*At the end of the month, Fincome only looks at* ***the state of the MRR on 01/31****__.*

# The case of invoice overlaps

Same logic in the opposite case.

If two invoices overlap:
* a **temporary MRR spike** may appear during the month
* but as soon as the first invoice expires, the MRR returns to its normal level

At the end of the month, **the duplicate no longer exists**: the MRR is cleaned up automatically.

### Point of attention: amounts can therefore change as long as the period is not over

As long as the month (or the quarter / year) is not closed:
* the displayed MRR can change
* temporary churns or contractions can appear then disappear

That is normal: Fincome will always update based **on the final state of the period**.

### Netting does NOT apply to the Bridge / Waterfall views

In these views:
* Fincome displays **all the movements between the start and the end of the period**
* no movement is neutralized

#### Example

*On a Bridge view between January and December:*
* *January's churn is visible*
* *April's reactivation is visible*
* *even though, on a "classic" annual view, they would be netted*

*These views answer a different question:*

> *Which movements took place during the period?*

---

# How to get a netted YTD (Year-to-Date)

If you want to analyze a **net calendar year**, without seeing the churns and reactivations internal to the year:
1. Go to the **MRR Movements** view
2. Select an **annual period**
3. Analyze the displayed movements

You will get a **net reading of the MRR's evolution over the year**, based only on the starting state and the ending state.

---

# FAQ

→ **Why don't I see certain churns or reactivations depending on the selected period?**
Because Fincome nets the 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.

→ **Does Fincome delete MRR movements?**
No. Fincome does not delete any movement. Depending on the view used, the movements are either netted (in views based on the state of the MRR at the end of the period), or displayed in full (in the Bridge or Waterfall views). The movements always exist; only their reading changes.

→ **Why do I sometimes see a churn during the month that then disappears?**
Because Fincome applies **intra-month netting**. As long as the month is not over, the MRR can fluctuate (invoice end, new invoice, gap, etc.). At the end of the month, Fincome relies only on the state of the MRR on the last day of the month. If the customer is active on that date, the temporary churn is neutralized.

→ **Why can the MRR change while I am still in the same month?**
The displayed MRR corresponds to a **snapshot at a date**. As long as the period is not closed, this snapshot can evolve according to new invoices, period expirations, or data corrections. The MRR stabilizes definitively once the period is over.

→ **Which view should I use if I want to see all the movements, without netting?**
The **Bridge** and **Waterfall** views. They display all the churns, reactivations, expansions, and contractions between the start and the end of the selected period, **without any netting**, even if the movements offset each other.

→ **Which view should I use if I want a net annual (YTD) view?**
Use the **MRR Movements** view, selecting an **annual period**. This view lets you analyze a net evolution over the year, based only on the state of the MRR at the start and the end of the period, without intermediate noise.

→ **Does the netting depend on the calculation options (churn recognition, gaps, etc.)?**
No. Intra-period netting is a **structural principle** of Fincome. The calculation options influence when the movements are generated, but not the netting logic, which always relies on the state of the MRR at the end of the period.
