Getting started
Running a monthly review
More sources and clients
How the numbers work
Cash vs recurring revenue
Two valid ways to count a prepaid plan, and how Morevy chooses.
A customer pays $600 in January for a three-month plan. You can count $600 in January, or $200 in each of January, February and March. Both are valid. They answer different questions, and the choice changes every figure in the month.
The bases
Cash collected | Every payment counts in the month it cleared, refunds included. Answers how much money came in. |
Normalized recurring revenue | A prepaid plan is spread across the months it covers. Answers what the business earns per month. |
MRR as stated, ARR as stated | Your file already states recurring revenue per month or per year, so nothing is spread and the figures are read as written. |
Every figure names its basis. The waterfall is titled Cash Waterfall on cash collected and MRR Waterfall otherwise.
Why the choice matters
Suppose a business with a steady monthly book runs a promotion on annual plans. On cash collected, the promotion month looks exceptional. On normalized recurring revenue, it looks ordinary. Both are correct, so look at both before calling it a strong month.
How Morevy decides
Morevy starts on cash collected. The reading of a new file notes Cash collected · assumed.
It looks for plan lengths, in your plan names, in a column that states the term, or in plan lengths you set. A prepayment with no term in the file is matched to a monthly rate the file already bills, and its term is the engine's guess; the month says how many terms were guessed and for how many dollars.
It asks before spreading. When plan lengths are known, the month view asks whether to spread each payment over the months it buys, or count each payment when it arrived.
It asks what an automatic rebill is. A payment your billing system takes on a schedule can be one payment of an ongoing plan, or a whole plan paid up front. If Morevy cannot tell which from the file, it asks you once for that file.
When a month stays on cash
If a prepaid plan's length is not stated but the file already bills a matching monthly rate, Morevy fills the term in from that rate and says so: the month states how many terms were guessed and for how many dollars. If more than 1% of the file's dollars are on plans whose length cannot be established even that way, the month stays on cash collected, and Morevy names the plans responsible and says how to fix it: set the plan lengths on the file.
Refunds
On cash collected, a refund reduces the month it cleared in. On normalized recurring revenue, a refund against a prepaid plan removes the months that plan had not yet covered.