Recurring addons are not included in MRR calculations. Why?

Scope

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

Summary

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

This happens when flexible MRR is not enabled.

Solution

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 a non-recurring addon. Therefore, this addon 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 addon. Step 2: Create a sub by associating the above yearly plan and the yearly addon. Give 1 as the billing cycle for the yearly addon. 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 addon is recurring, as the billing cycle is mentioned, this is considered a non-recurring addon 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