# Intra-period netting ## 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 **πŸ“… Monthly view** * January: **churn** * April: **reactivation** * Both movements are visible separately **πŸ“† Quarterly view** * Q1: **churn** * Q2: **reactivation** * Movements remain visible, but aggregated at the quarter **πŸ—“οΈ 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. {% hint style="warning" %} ## 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**. {% endhint %} {% hint style="danger" %} ## T**he 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 β€œclassic” annual view, they would be netted* *These views answer a different question:* > *"Which movements took place during the period?"* > {% endhint %} ## 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: 1. Go to the **MRR Movements view** 2. Select an **annual period** 3. 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 β†’ **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. *** β†’ **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. *** β†’ **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. *** β†’ **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. *** β†’ **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. *** β†’ **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. *** β†’ **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. --- # 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. 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