How MRR Schedules Work

MRR Schedules track the monthly recurring revenue (MRR) related to a Subscription. Specifically, the MRR Start Date and MRR End Date define the months for which MRR Schedules exist on the Subscription.

MRR Schedules are created when products from both won and pipeline opportunities are linked to a Subscription.

Both renewable and evergreen products on Subscriptions have MRR Schedules. However, there are some differences in how these work, so let’s deal with each separately.

Let’s begin with renewal products.

MRR Schedules on renewable products

Remember, customers buy renewable products for a fixed term. For example, the subscription lasts 12, 24, or 36 months.

Let’s assume a customer is buying a product for the first time. When a user adds a product to the pipeline opportunity, she enters the Start Date and # Periods. The app automatically calculates the End Date based on these two parameters.

As this is a pipeline opportunity, and the customer hasn’t previously purchased this product, the app creates a Subscription.

The Start Date and End Date are blank because the opportunity is in the pipeline stage. These fields define the period the customer can access the product or service and are populated when the opportunity is won.

However, the MRR Start Date and MRR End Date are populated because MRR Schedules are created for both pipeline and won opportunities.

As a result, the app creates MRR Schedules every month between the MRR Start Date and the MRR End Date.

For example, let’s say we have a pipeline opportunity for a customer to purchase a warranty subscription for 12 months, and the Start Date on the opportunity product is January 1, 2024. The customer plans to purchase the product for twelve months, so the End Date on the opportunity product is December 31, 2024.

The Start Date and End Date on the Subscription are blank because it’s a pipeline opportunity. However, the MRR Start Date and MRR End Date on the Subscription are populated as January 1 and December 31, 2024. This means the app creates twelve monthly MRR Schedules between these dates.