Manage calculation options
This guide presents the different configurable options that influence the calculation of MRR, ARR and associated indicators in Settings > Calculation Options on Fincome.
1. Churn recognition
Objective: Determine the exact moment when Fincome removes the MRR of a subscription after a cancellation.
Options:
At cancellation request : the MRR is removed immediately after the termination request. Ideal for a forward-looking view of committed MRR.
At effective cancellation : the MRR is removed on the actual cutoff date (immediate or scheduled).
At the end of the last billed period (default) : the MRR is retained until the end of the already paid period. Allows aligning churn with recognized revenue.
2. Application of discounts
Objective: Determine whether discounts (recurring or one-off) reduce MRR and KPIs.
Options: Calculate MRR:
Before discount : gross contract value (no reduction).
Permanent discounts only : only durable concessions are deducted; one-off promotions are ignored.
All discounts (default) : all discounts are deducted to obtain a net revenue view.
3. Consideration of credit notes (refunds)
Objective: Define if and how refunds reduce MRR.
Options:
Include – retroactive : the billing period related to the credit note is adjusted downward.
Include – non-retroactive : the refund is accounted for as an MRR decrease at the moment it is issued.
Ignore (default) : refunds do not impact MRR, past or present.
4. Time zone
Objective: Align Fincome’s main clock with that of your billing tool.
5. Default display of MRR / ARR
Objective: Choose the metric displayed by default in dashboards and reports.
Options:
MRR : monthly view of recurring revenue.
ARR : annual projection (MRR × 12).
6. Exclusion of open invoices for canceled / unpaid subscriptions
Objective: Prevent potentially uncollectible invoices from artificially inflating indicators.
Options:
Yes : open invoices related to canceled or unpaid subscriptions are excluded from MRR.
No : open invoices are counted as long as they are not paid or canceled.
7. Deferred billing
Objective: Smooth MRR when the invoice is issued at the end of or after the service period.
Options:
Disabled : no smoothing; 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 start, Fincome retains 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.
8. Deferred billing tolerance (in days)
Objective: Define a grace period during which MRR is simulated while waiting for the next invoice.
Options: Choose the number of days to wait before considering a churn.
9. Future subscription tolerance (in days)
Objective: Define a grace period during which MRR is simulated while waiting for an upcoming subscription whose start date is near.
Options: Choose the number of days to wait before the future subscription disappears.
10. Neutralization of period gaps and overlaps
Objective: Link and merge lines of the same subscription if they are consecutive or complementary.
Options:
Disabled : billing periods are taken as-is.
Neutralize gaps : fills small gaps to avoid a temporary drop in MRR.
Neutralize overlaps : avoids double counting.
Neutralize both.
11. Recognition of MRR after the end of the last billed period
Objective: Define how long to retain 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, without retroactive effect.
Until the end of commitment : MRR maintained until the contractual term.
12. Invoice statuses considered in MRR / ARR
Objective: Define the invoice statuses to include in the recurring revenue calculation.
Options:
Open + Paid (default) : commitment view: revenues are recognized upon issuance unless canceled.
Paid only : cash view: revenues are counted only upon receipt.
All statuses : includes even canceled / deleted invoices.
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