# Manage calculation options ## 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 recognition](https://help.fincome.co/~/revisions/9nvK5AXkTDcCZskysdqi/comprehension-des-chiffres/reconnaissance-du-churn). *** ## 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. *** ## 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 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. * **Neutralize both.** *** ## 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. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://help.fincome.co/en/avancees/required-step-data-framing/manage-calculation-options.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. 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