Why does the MRR report include failed charges by default?

The reason that our Data team recommends including failed charges in your MRR calculation is that - MRR is expected recurring revenue. For example, if a payment fails and a subscription goes past due, MRR is not immediately affected since you still expect to receive the money. If the dunning strategy completes and the subscription expires, then it will be shown as part of the MRR churn calculation at the time of expiration.