Impact of Delinquent Dubscription Payments on Monthly Recurring Revenue (MRR) in Billing
How do late payments or unpaid payments for subscriptions factor into my MRR in Billing?
Once a subscription is
unpaid rather than
active, the amount does not count towards your MRR. If you mark subscriptions as
unpaid as your dunning final action, we consider a subscription delinquent at the time the subscription transitions to
Delinquency effective date change as of 2019
Delinquency is considered differently in 2019 than it had been in 2018. If you are looking at year-to-date data that includes subscription data from 2018, note that subscriptions were only considered delinquent when the following invoice was generated and automatically closed due to delinquency. In 2019, Billing considers subscriptions delinquent as of the date that the subscription marked as unpaid, rather than the generation date of the next invoice.
In 2018, if you had your final payment attempt on the 8th but don’t bill until the 15th of the month, the subscription would be marked delinquent as of the 15th. In the new system as of 2019, the subscription would be delinquent as of the 8th.