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Account configuration chevron-right Mandatory step: data framing Manage calculation options This guide presents the different configurable options that influence the calculation of MRR, ARR and related indicators in Settings > Calculation Options on Fincome.
1. Recognition of churn
Objective:
Determine the exact moment when Fincome removes the MRR of a subscription after a cancellation.
Options:
At the time of 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 on 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. Allows aligning churn with recognized revenue.
For more information, you can also read our article on churn recognitionarrow-up-right .
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 lasting 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 period of the invoice related to the credit note is adjusted downward.
Include – non-retroactive : the refund is recorded as an MRR decrease at the time it is issued.
Ignore (default) : refunds do not affect MRR, past or present.
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 metrics.
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 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 period than to the start , Fincome keeps the last known MRR.
If the invoice is issued ≤ 5 days before the end of period , the MRR is maintained until the next cycle.
8. Deferred billing tolerance (in days)
Objective:
Set 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:
Set a grace period during which MRR is simulated pending 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:
Connect 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 voids to avoid a temporary drop in MRR.
Neutralize overlaps : prevents double counting.
11. Recognition of MRR after the end of the last billed period
Objective:
Define how long to keep 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 commitment : MRR retained until the contractual term.
12. Invoice statuses taken into account in MRR / ARR
Objective:
Define the invoice statuses to include in the recurring revenue calculation.
Options:
Open + Paid (default) : commitment view: revenues are accounted for upon issuance unless canceled.
Paid only : cash view: revenues are only counted upon receipt.
All statuses : includes even canceled / deleted invoices.
