Reading MRR without overcounting trials and refunds

Monthly recurring revenue looks simple until trials convert mid-month, refunds reverse earlier cash, and grace periods keep access open after a failed charge. App teams in Thailand often inherit three spreadsheets that each claim to be “the MRR.”

Start with a written definition

Before summing anything, write whether trial users count, whether annual plans are recognized monthly or booked in full, and how partial refunds reduce the figure. That paragraph belongs in every board pack footer.

Separate cash from recognized revenue

Store payouts arrive net of fees and on their own schedule. Keep a cash column beside the recognized MRR column so directors do not confuse remittance timing with subscription health.

Treat refunds as first-class rows

Refund leakage buried in a net total invites surprise. Show gross billed, refunds, and net recognized for the same period. When Dataroutebase runs a Subscription Revenue Review, this table is usually the first page we draft.

Agree owners for exceptions

Every unmatched upgrade or promotional credit needs a named owner—product, support, or finance—before the next close. Unowned exceptions return as arguments in the following month.

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