Invoice handling

For Braintree, Chargebee (latest version), Google Sheets, Recurly, Stripe, third-party and custom sources, you can control how ChartMogul classifies customers with open invoices. Determine when to recognize a paid subscription and generate MRR: the moment an invoice is issued, when it’s partially paid or only after it’s paid in full. You also have the option to exclude written-off, voided or fully refunded invoices from MRR calculations.

Configuring invoice handling

To update this setting, go to Settings & Data > Sources and click the cog icon by the source you want to configure. In the configuration modal, expand Data Settings and find Invoice Handling Settings.

Under ChartMogul will create new paying subscribers (or reactivate churned ones) when, decide when ChartMogul should recognize MRR by selecting one of the following options:

• Their initial subscription invoice is fully paid (Default) — ChartMogul generates MRR when an invoice is paid in full. Open invoices (unpaid or partially paid) are excluded from MRR calculations.
• Their initial subscription invoice is partially paid — ChartMogul generates MRR when an invoice is partially paid.
• Their initial subscription invoice is issued — ChartMogul generates MRR when an invoice is issued.

Under ChartMogul will update existing paying subscribers when, choose when ChartMogul should update MRR by selecting the following options:

• A subscription invoice is issued (Default) — ChartMogul updates a subscription’s MRR when an invoice is issued.
• A subscription invoice is fully paid — ChartMogul updates a subscription’s MRR when an invoice is paid in full. Open invoices (unpaid or partially paid) are excluded from MRR calculations. You can only select this option when you have the ChartMogul will create new paying subscribers (or reactivate churned ones) when option set to default (Their initial subscription invoice is fully paid).

Under Prevent invoices from creating new subscriptions or updating existing ones if, you can select one or more cases when you want ChartMogul to exclude an invoice from MRR calculations:

• An invoice is written off or marked as uncollected
• An invoice is voided
• An invoice is fully refunded

Click SAVE SETTINGS, SAVE AND REPROCESS DATA or SAVE AND REIMPORT DATA to apply your selections. Learn more.

Let’s say you’ve chosen the default option to recognize MRR when an invoice is fully paid. You’ve also opted to ignore MRR from invoices that are fully refunded.

A new customer, Tetoko, subscribes to your monthly plan. On January 1, you issue an invoice for $100. Tetoko makes a partial payment of $50 on January 5 and pays the remaining $50 on January 15. Since you’ve chosen to recognize MRR when an invoice is fully paid, ChartMogul generates a New Business MRR movement of $100 on January 15.

On January 31, Tetoko cancels their subscription, and you issue a full refund of $100. Because fully refunded invoices are excluded from MRR calculations, ChartMogul removes the $100 New Business movement from Tetoko’s subscription history.

The collection method determines how invoice payments are processed. There are two types:

• Automatic collection — Payments are collected using the customer’s stored billing information.
• Manual collection — Requires the user to manually enter payment transactions or the customer to pay the invoice through an alternative method.

The feature is available for Stripe, Recurly, Google Sheets, third-party and custom sources.

Each collection method comes with its own configurable Invoice Handling Settings, allowing users to tailor subscription recognition and MRR calculations based on how invoices are expected to be paid. This design ensures flexibility for users with varying payment structures and reporting needs.