Recurring addons are not included in MRR calculations. Why?

Modified on: Mon, 23 Jan, 2023 at 5:16 PM

The issue with the recurring predefined billing cycle addon not being included in the subscriptions MRR. 

There might be scenarios where your subscription might have recurring Add-ons with billing cycles given pre-defined while creating the sub. In this case, the MRR of the sub will not include this Recurring Add-on amount ( with billing cycles given) in its calculations. 

This happens when flexible MRR is not enabled. 




As per the current system design, if flexible MRR is not enabled if a Recurring addon is added to a subscription and while adding if the number of billing cycles is given, the system will consider it as Non-Recurring Add-on. Therefore, this Add-on amount will not be included in MRR. 


In case, flexible MRR is NOT enabled, and even for a recurring addon if the billing cycle is mentioned, it will be considered as Non-recurring and this will not be included in the MRR Calculations. 


Steps to replicate and check:
Step 1
: Create a yearly plan and a yearly add-on.
Step 2: Create a sub by associating the above yearly plan and the yearly add-on. Give 1 as the billing cycle for the yearly add-on.
Step 3: Now, moved the timer to 1 day ahead, so that the update_submetrics job runs to update the MRR.
Step 4: Now, the MRR seems to be including the plan amount alone because, flexible MRR is NOT enabled and even though the add-on is recurring, as the billing cycle is mentioned, this is considered a Non-recurring add-on by the system and hence this will not be included in the MRR Calculation. 

  •  Plan Amount = 13,899                             
  •  Add Amount = 2100                             
  • Total subs Amount = 15,999                             
  • MRR = 13,899 / 12 = 1158.25                             


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