This article explains the difference between the two main revenue views ScaleXP uses for revenue reports and metrics — revenue recognition and MRR — so you can choose the right one for your reports, dashboards, and journals. For a comparison to the accounting view (IFRS/GAAP), see IFRS/GAAP reporting versus revenue recognition.

See a summary of all reporting options here: Customers tab: where to configure and review revenue and customer information, MRR, ARR 

What the revenue recognition view shows

Revenue Recognition will show you the precise amount of total revenue that should be recognized in a given month. Just like MRR, Revenue Recognition uses exact Start and End dates (or other allocation rules) without taking into consideration whether the invoice was issued before or after the start date. Unlike MRR, Revenue Recognition reflects partial start and end months. Revenue Recognition can be used to write your deferred and accrued revenue journals. (Alternatively you can use IFRS / GAAP view which takes invoice issue date into account).   Read more about the IFRS / GAAP view here:  How to set journals to IFRS or GAAP revenue recognition rules so that backdated revenue is recognised at time of invoice 

What the MRR view shows

MRR is a full month view of revenue, answering the question “what was the total recurring value of my customer base in a given month”. MRR always allocates revenue according to Start and End dates (or other revenue allocation rules) and never takes into consideration whether the invoice was issued before or after the start date.

Recommended report settings

You’ll notice that by default, all revenues will show in both the revenue recognition and MRR customers pages.

We recommend that you add a filter to the MRR report to omit any nominal accounts which do not represent recurring revenue.

Examples include Professional Services and Hardware.

Other settings in the "Configure Report" modal allow you to select views, omit certain invoices and choose which metrics to show at the top of the report.

It is best practice to keep the majority of these settings as is for the default reports except for the recurring revenue account filter on MRR just mentioned.

For different views, feel free to adjust these settings and click Save Report or use the New Report + button to create new reports on this page.

As you can see indicated by the globe next to the report name, ScaleXP uses the MRR report as the global default for reports and dashboards for metrics throughout the system.

We recommend using an MRR report as the default to ensure your business metrics reflect the full month value of your customers.

Read more about adjusting your report viewing options here:  How to view MRR and/or deferred revenue by income type; how to filter accounts on the Customer page