What happens when a customer cancels a subscription without a refund?
When a customer cancels their subscription and is not offered a refund, their remaining deferred
revenue is recognized in the month they cancel
How are minimum term invoices that are generated as a part of the dunning flow recognized?
When a minimum term invoice is raised as part of the dunning flow, the original invoice that puts the customer in the dunning flow is written off and the value of that invoice is added to the minimum term invoice. If the minimum term invoice gets paid, the value on the invoice relating to the minimum term payment is recognized immediately. This is because the minimum term service charge (early termination) is performed immediately, meaning there is no performance period. The amount relating to the service that was invoiced and previously unpaid would however be recognized across its entire performance period.
If the customer was subscribed to a yearly cycle, it would be recognized across the year, unless the subscription is canceled as part of the dunning flow
Will my past revenue be recognized?
No, our revenue recognition and deferred revenue reports only recognize revenue from 15th June 2021 onwards. Past revenue will not be recognized.
Updated about 2 months ago