Manage calculation options

Where to find these options

Go to Settings > Calculation options. Each parameter applies to the entire platform (Reporting, Forecast, Benchmark). Any change recalculates your metrics: it is normal to see your figures move after a change.

Some of these options also exist on the billing tool side. If you want your Fincome figures to match your billing system as closely as possible, make sure to align the settings on both sides.

MRR recognition over time

These options control when a subscription starts and stops contributing to MRR.

Billing in arrears
Useful if you bill in arrears, i.e. when the invoice is issued at the end of the service period rather than at the beginning. Without this option, the last invoice of a subscription makes MRR drop to zero as soon as its period ends, even if the subscription is still active and the next invoice simply has not been issued yet, which creates artificial churn. When enabled, Fincome simulates the MRR of the last invoice until the end of the following period, plus a tolerance period. Possible choices:

• Disabled: no simulation. MRR stops at the end of the last billed period.
• The invoice date is closer to the end of the line's period than to its start: enables the simulation when the invoice date falls in the second half of the period, a sign of billing in arrears.
• The invoice date is at most 5 days before the end of the line's period: a stricter condition, the simulation only activates if the invoice is issued in the last 5 days of the period.

If an active customer shows an ARR drop or unexpected churn right after their last invoice while you bill in arrears, this is the option to enable.

Billing-in-arrears tolerance period (in days)
Works together with the previous option. Once the simulated period has elapsed, Fincome waits this number of days for a new invoice to be issued. If no invoice arrives after this delay, the simulated MRR drops back to 0 (real churn). Default value: 3. Increase it if your invoice reissues can be delayed.

Future subscription tolerance window (in days)
Defines a number of days, starting from a subscription's start date, during which it is already counted in MRR. Default value: 0. Leave this default unless you have a specific need.

After the end of the last period billed for a subscription, keep recognizing MRR
Controls whether MRR extends beyond the last billed period, depending on the subscription status reported by your billing tool. Possible choices:

• Never: MRR stops at the end of the last billed period.
• Indefinitely, if the subscription status is not "canceled": MRR continues as long as the subscription is not canceled.
• Indefinitely, if the subscription status is neither "canceled" nor "unpaid": same, but MRR also stops if the subscription becomes unpaid.
• Until the subscription cancellation date (without retroactive effect on MRR): MRR is recognized until the cancellation date, without going back to correct the past.

Adjust the end-of-period date of invoice lines
Fincome counts a line up to the day before the indicated end date: the end date is excluded. So for billing to remain active through the 3rd inclusive, indicate the 4th as the end date. When this option is enabled, Fincome automatically adds one day to the end date to complete a full month on standard periods (1, 3, 6, or 12 months): a period from 01/01 to 31/01 is thus treated as running from 01/01 to 01/02, which avoids churn wrongly counted at the end of January. Enabled by default. For non-standard periods (a few days, or a month plus a few days), the adjustment cannot be applied automatically: in that case, manually move the end date to the following day (for example 01/06 for coverage through 31/05 inclusive).

Churn recognition
Determines on which date churn is counted when a subscription is canceled. Possible choices:

• On the cancellation request date: as soon as the cancellation is requested.
• On the effective cancellation date: on the date the cancellation takes effect.
• At the end of the last billed service period: at the end of the period already paid for (default choice).

Scope of invoices and periods

Invoice statuses counted in the MRR-ARR and KPI calculation
Defines which invoices contribute to MRR. Possible choices:

• Only open and paid invoices (default).
• Only paid invoices.
• All invoices regardless of their status (incl. unpaid).

Exclude from revenue the invoices pending payment associated with canceled or unpaid subscriptions
When set to Yes, invoices pending payment attached to canceled or unpaid subscriptions are excluded from revenue. Set to No by default.

Neutralization of gaps and overlaps in billing periods
Connects and merges billing lines within the same subscription to avoid gaps or duplicates (overlaps) that would distort MRR. Possible choices:

• Neutralize gaps and overlaps.
• Neutralize only gaps.
• Neutralize only overlaps.
• Disabled (default).

For details on this parameter, see the article Invoice gaps / overlaps.

Handling amounts: discounts and credit notes

Apply discounts
Determines how discounts affect MRR and KPIs. Possible choices:

• Before discount: MRR is calculated on the gross amount, without accounting for discounts.
• Applying only permanent discounts.
• Applying all discounts (temporary and permanent): MRR net of all discounts (default choice, generally the most representative of the business).

Include credit notes
Determines whether credit notes are deducted from the calculation. Possible choices:

• Account for credit notes.
• Account for credit notes non-retroactively.
• Do not account for credit notes (default).

Non-retroactive revenue recognition of credit notes
When enabled, the revenue recognition tied to credit notes is done non-retroactively, without correcting past MRR. Disabled by default.

Display and time zone

Time zone
Time zone used for all dates and times associated with your data in Fincome. It notably affects the attachment of invoices to a given month. Set to UTC by default (other examples: Europe/Paris, America/Vancouver). To understand its effect, see the article Impact of time zones on MRR calculation.

Default MRR/ARR display
Chooses whether the dashboard and reports display MRR or ARR by default. Set to ARR by default.

Best practices

Before changing an option, keep in mind that it recalculates your metrics across the entire platform. If your goal is to match Fincome to your billing tool, set each option to mirror the latter. In case of a persistent discrepancy between your figures, the article Fincome data vs billing data details the most common causes.

Updated on: 23/07/2026