How is MRR calculated if coupons are included along with Flexible MRR?

Scope

How do coupons get added to MRR?

Where can I see if we have regular or flexible MRR calculation set up?

How is MRR calculated if coupons are included along with Flexible MRR?

How is the MRR calculated with Flexible MRR enabled for one-time coupons?

MRR calculation with Flexible MRR vs Regular MRR

Summary

Flexible MRR is enabled on the live site. There is a difference in the way coupons are included in the MRR calculation with Flexible MRR vs Regular MRR. Once Flexible MRR is enabled, any coupon added to a subscription will be included in the MRR calculation only if a line-item reference such as unbilled charges or an invoice is present with the coupon applied.

The MRR does not include the coupon and increases every time an unbilled charge is deleted or updates are made to an ongoing subscription without proration.

In case you do not want MRR to take a one-time coupon into the calculation, please disable one-time coupons to be included in the MRR (As part of your flexible MRR settings) so that they aren't included in the calculation.

Solution

Example 1: Step 1: Let's assume that the subscription contains the following items and are pushed to unbilled charges:

Plan - $100

Add on - $100 * 3

Coupon [Applicable Forever] - 50%

MRR at step 1: (100 + 300) - 50% = $200. The coupon is included here because an unbilled charge is present with the coupon applied.

Step 2: Delete the unbilled charges MRR at step 2: $400. The coupon is not included here because there is no invoice or unbilled charge present with the coupon applied.

Example 2:

Step 1: Let's assume that the subscription contains the following items and are pushed to unbilled charges:

Plan - $100

Add on - $100 * 3

Coupon [Applicable Forever] - 50%

MRR at step 1: (100 + 300) - 50% = $200. The coupon is included here because an unbilled charge is present with the coupon applied. Step 2: Delete the unbilled charge MRR at step 2: $400. The coupon is not included here because there is no invoice or unbilled charge present with the coupon applied.

Step 3: Change subscription -> apply proration and push the changes to unbilled charges (OR)

Plan - $200

Add on - $100 * 3

Coupon [Applicable Forever] - 50%

MRR at step 3: (200 + 300) - 50% = $250. The coupon is included here because an unbilled charge is present with the coupon applied after the subscription update action.

Step 4: Change subscription -> do not apply proration and push the changes to un-billed charges

MRR at step 4: 200 + 300 = $500. The coupon is not included because there is no unbilled charge or invoice present with the coupon applied.

In conclusion, the MRR does not include the coupon and increases every time an unbilled charge is deleted or updates are made to an ongoing subscription without proration.

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