---
title: "Terms"
description: "How Fenerum defines and calculates MRR, ARR and subscription activities"
url: https://www.fenerum.com/en-DK/docs/terms/
updated_at: "2026-07-08T13:00:00"
---
## Terms

### MRR - Monthly Recurring Revenue

MRR is the recurring revenue generated from customers, measured monthly unlike ARR below which is the same but annually.

Now, this sounds very easy but there is a lot to consider, e.g. exchange rates, temporary discounts, etc. Fenerum takes
a very opiniated approach to MRR calculation but also an accountable approach which means you can always drill down your
MRR on a subscription level and see how it adds up.

#### Exchange Rates

In Fenerum the MRR is always displayed in the corporate currency of your account. We use the exchange rate of the latest
renewal for the entire duration of the invoiced interval, e.g. for a monthly subscription we update the exchange rate
every month when we send an invoice. Similarly, for annual subscription we update the exchange rate annually. This ensures
a consistent MRR month over month and an MRR that doesn't change eveyr hour depending on the exchange rate.

#### Discounts

If you issue a credit note, by definition it does not change your MRR since you still have the recurring revenue. On the
other hand, if you create a discount on the subscription (even if time limited) for that period of time your recurring revenue
is reduced.

#### One-offs, (over)usage, etc.

Only actual subscriptions are counted towards MRR. If you for instance sell SMS for price each this is not MRR although
they may have similar usage every month. If you want to convert it to MRR you need to create a package with X amount included
and invoice it automatically every month, where automatically every month is what makes it a subscription and MRR.

### ARR - Annual Recurring Revenue

See MRR above.

$ARR = MRR \* 12$

## Built-in reporting

### Home page widgets

#### Current MRR

Current MRR is the MRR in this very moment, meaning it includes all activities up to the current point in time but no scheduled/future activities.

#### End of Month MRR

End of Month MRR works the same way as the Current MRR but the point in time is the very last moment of the current month. If you want a specification
of the difference between Current MRR and End of Month MRR you can click "Show related MRR Activities".

#### Comitted MRR

Comitted MRR shows your MRR with all scheduled changes included until the end of time. If you want a specification
of the difference between Current MRR and Comitted MRR you can click "Show related MRR Activities".

## Subscription Activities

Subscriptions have activities that can be used to account for MRR at any point in time.

### New MRR

The MRR of new subscriptions at the time the subscription is created.

Please note: If you create a subscription with the initial three months with a 100% discount, you will get a New MRR of 0 and then an Upgrade MRR of
XXX three months later.

### Upgrade / Expansion MRR

We have two activities upgrade\_qty and upgrade\_subscription. We use upgrade\_qty if the only reason for the change in MRR is changing the quantity field. If there are any other changes, e.g. discounts running out, upgrading the plan, etc. we will always default to upgrade\_subscription.

### Downgrade / Contraction MRR

Works as above for downgrades.

### Cancel / Churn MRR

Ever subscription that is cancelled results in a cancel activity. Please be aware that this can result in multiple cancel activities per account.

## Reporting Solutions

### Plecto

For visualizing Fenerum data on TVs and lightweight subscription business intelligence, we recommend [Plecto](https://www.fenerum.com/en-DK/docs/reporting/plecto.md).

### Other reporting solutions

If you have more sophisticated needs, you can easily use our API to extract all information and feed it into your data warehouse. We recommend that you at least add the following API endpoints as tables:

- Accounts
- Activities
- Subscriptions
- Invoice
- Transaction

In general you can use the latest activity, within a timerange you want to report, per subscription to decide the MRR at the end of this period.

---

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