Intra-period netting
This article explains how this intra-period netting logic works and how to correctly read your churns, reactivations and MRR variations according to the chosen granularity.
1- 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 on 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 MRR at the end of this period?"
This principle explains why movements (churn, reactivation, expansion, contraction) can appear or disappear depending on the chosen granularity.
2- Netting of movements based on the chosen period
Fincome applies an intra-period netting on MRR movements, depending on the selected granularity:
Monthly
Quarterly
Annual
Example: churn then reactivation over the year
A customer:
churns in January
returns in April with a lower MRR
📅 Monthly view
January: churn
April: reactivation
Both movements are visible separately
📆 Quarterly view
Q1: churn
Q2: reactivation
Movements remain visible, but aggregated at the 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 active, but with an MRR lower than at the start of the year.
3- Intramonth netting: the basic rule
The granularity monthly is currently the smallest granularity available in Fincome. This means that anything that happens within the same month is automatically netted.
Example: invoice gap within the month
A customer has:
an invoice that ends on 06/01
a new invoice that starts on 09/01
Between January 6 and 9
The customer is temporarily without MRR
Fincome may display a churn as long as the month is not finished
From January 9 (and at the end of the month)
The customer has MRR again
The churn disappears
MRR is considered active for January
At the end of the month, Fincome only looks at the state of MRR on 01/31.
Case of overlapping invoices
Same logic in the reverse case.
If two invoices overlap:
a temporary MRR spike can appear during the month
but as soon as the first invoice expires, MRR returns to its normal level
At the end of the month, the duplicate no longer exists : the MRR is automatically cleaned.
Point of attention: amounts can therefore change as long as the period is not finished
As long as the month (or the quarter / the year) is not closed:
the displayed MRR can change
temporary churns or contractions may appear and then disappear
This is normal: Fincome will always update itself according to the final state of the period.
The netting does NOT apply to Bridge / Waterfall views
In these views:
Fincome displays the entirety of movements between the start and the end of the period
no movement is neutralized
Example
On a Bridge view between January and December:
the January churn is visible
the April reactivation is visible
even if, on a “classic” annual view, they would be netted
These views answer a different question:
"Which movements took place during the period?"
4- How to obtain a net YTD (Year-to-Date)
If you want to analyze a net calendar year, without seeing churns and reactivations internal to the year:
Go to the MRR Movements view
Select an annual period
Analyze the displayed movements
You will obtain a net reading of MRR 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 movements within the chosen period (monthly, quarterly or annual). If a churn and a reactivation occur in the same period, they can offset each other. Fincome then displays only the net impact on MRR at the end of the period, for example in the form of a contraction.
→ Does Fincome remove MRR movements? No. Fincome does not remove any movements. Depending on the view used, movements are either netted (in views based on the MRR state at the end of the period), or displayed in full (in Bridge or Waterfall views). The movements always exist, only their interpretation changes.
→ Why do I sometimes see a churn during the month that then disappears? Because Fincome applies an intramonth netting. As long as the month is not finished, MRR can fluctuate (invoice end, new invoice, gap, etc.). At the end of the month, Fincome is based only on the MRR state on the last day of the month. If the customer is active on that date, the temporary churn is neutralized.
→ Why can MRR change while I'm still in the same month? The displayed MRR corresponds to a snapshot at date. As long as the period is not closed, this snapshot can change depending on new invoices, period expirations or data corrections. MRR stabilizes definitively once the period is over.
→ Which view should I use if I want to see all movements, without netting? The Bridge and Waterfall. They display all churns, reactivations, expansions and contractions between the start and the end of the selected period, with no netting, even if movements offset each other.
→ Which view should I use if I want a net annual (YTD) view? Use the MRR Movements view view by selecting an annual period. This view allows you to analyze a net evolution over the year, based only on the MRR state at the start and at the end of the period, without intermediate noise.
→ Does netting depend on calculation options (churn recognition, gaps, etc.)? No. Intra-period netting is a structural principle of Fincome. Calculation options influence when movements are generated, but not the netting logic, which always relies on the MRR state at the end of the period.
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