RevenueStory uses the site-level setting of Chargebee to control the impact of backdated subscription actions invoicing on reports. By default, the reports are configured not to consider the implications of any backdated transactions, and all reporting is done prospectively without impacting the historical reporting records.
However, the reports start considering the impact of backdated subscription events and invoicing once this setting is enabled. Now RevenueStory handles reporting impacts due to backdated subscription actions and Invoices.
The backdated subscription actions feature is currently available for limited use.
All transactions created before enabling this feature will be considered for backdating, as a result it would impact reports within RevenueStory.
If you choose to enable backdating for your site, you will create backdated subscription events as per the scenarios mentioned below.
Creation Events: Subscriptions are created by specifying a start date from the past.
Reactivation Events: Subscriptions are reactivated by specifying a date from the past.
Change Events: Subscription change initiated by specifying a change date from the past, for example, subscription changes to recurring items or addition/removal of non-recurring items, and so on.
Cancellation Events: Subscriptions cancelled by specifying a date from the past.
Reports that make use of these dates for the purpose of reporting will capture these changes retrospectively, which may end up impacting historical data. Any invoices & credit notes generated will also be generated with the corresponding back dates.
Consider a customer with a subscription on plan A that generates $100 MRR activated on the first of the month. Let's say on the 15th of the same month, the customer decides to downgrade to plan B with $50 MRR and would like the change to be reflected from the 1st of the same month.
Case1: If backdated invoicing is not enabled:
The MRR from 1st to 14th is $100 and $50 thereafter till the end of the month.
Case2: If backdated invoicing is not enabled:
The MRR, in this case, will be reported as $50 for the entire month, and the previously reported MRR will be overwritten.
Any billing-related reports will reflect this correction, and the total billing amount displays $50 for the month instead of $100 as previously reported. It is possible that there are some credit notes or refunds generated in the process. Credit notes, refund-related, and account summary reports, will report these changes accordingly.