The three questions

Before any calculation, Morevy confirms three things about your file. Your answers are recorded in the audit trail alongside the figures they produced.

Step 1: Column mapping

Morevy maps the columns and shows you what it read.

It examines your headers and the values beneath them to identify which column holds the customer, the date and the amount, then applies that reading. It is usually right; where it is not, you reassign the column, and the mapping is saved against that file. The one answer the close will not run without comes next.

Step 2: Revenue classification

This determines what every subsequent figure represents.

A payment export typically contains more than subscriptions: trials, one-off purchases, retail, late fees, account credits and refunds. Without classification, a recurring revenue total silently includes items that are not recurring revenue.

Morevy presents each distinct value with both its row count and its value, because a row count alone is insufficient to judge materiality:

Plan

Rows

Value

Monthly Unlimited

2,400

$480,000

Quarterly Plan

400

$240,000

Trial

50

$1,500

Retail

120

$3,600

Illustrative figures.

Caution. The close does not proceed until this is confirmed. This is not a dismissible warning.

A close that classifies retail as recurring revenue is incorrect in a way that is unlikely to be detected, and every subsequent decision inherits the error.

Step 3: Reporting basis

A customer pays $600 in January for a three month plan. The business may recognise $600 in January, or $200 in each of three months.

Both are valid and they answer different questions. Morevy recommends a basis for your file and states it on every figure. You can switch where the file supports spreading; when plan lengths cannot be read, the close stays on cash collected. On screen the two are named Cash collected and Normalized recurring revenue.

See Cash vs recurring revenue.

Revising your answers

All three are saved against the file and reused in subsequent periods.

Revising one after figures have been produced marks those figures as computed under superseded settings and offers to recompute. Displayed figures are not silently revised.