There are two churn recognition options available for all ChartMogul customers and one specific to Recurly.
Under Settings > Data settings, there is a set of options titled "Churn recognition".
- Always recognize cancellations as churn at the time of cancellation
- Churn will always happen in ChartMogul at the time the subscription is canceled/expired in your billing system. This gives you a more real-time view of your forward-looking MRR and is closer to the concept of Committed Monthly Recurring Revenue (CMRR).
- Always recognize cancellations as churn at the end of the paid-up billing period
- Churn will always happen at the end of the current paid-up subscription billing period, even if the subscription is canceled immediately in your billing system. This is often considered as a good practice for MRR reporting. One side effect (and a potential benefit) is that your MRR will usually appear to be higher with this setting.
Here's an illustration of how these options will affect the date on which your customers will be reported churned.
The behavior of these options works consistently across all billing systems.
Churn subscriptions at the time when the cancellation event is triggered/clicked (Recurly only)
- Churn will always happen immediately when the cancellation is triggered. Unlike the setting "Always recognize cancellations as churn at the time of cancellation", this setting ensures that even if the customer's subscription is set to expire at the end of their billing period they will be reported churned immediately.
If you alter the churn recognition setting, the change in how ChartMogul recognizes churn in your account will only be reflected going forwards. You will need to re-import your data to make the behavior consistent historically and going forwards.