How Are Failed Invoices Handled in the MRR Calculation?

Recurly's Monthly Recurring Revenue (MRR) calculation incorporates all invoiced recurring charges, credits, and refunds from active subscriptions. You can identify if a charge has been included in MRR if the line item associated with that charge has a start and end date on the invoice.

It's important to note that failing an invoice will not automatically remove it from your MRR calculations. By default, all recurring charges are kept in MRR, even if the associated invoice fails.

However, you can change this setting. Users with Analytics User permissions can configure whether to include or remove failed recurring charges from your MRR calculation:

1. In the Recurly Admin Console, go to Configurations > Analytics Settings > MRR Settings.

2. Under the "Failed Charges" section, you have the option to "Remove failed recurring charges from MRR."

3. Selecting this will remove these charges from your MRR calculations.