Companies working with subscriptions often measure their revenue by Annual (ARR) or Monthly (MRR). With this sales model activated, it's easier to view the revenue value of opportunities, orders, and your customers. You can also set sales targets for both subscriptions and one-off products with this model.

This article covers:

• Whether to choose ARR or MRR
• How to include/exclude churn and contractions when calculating ARR/MRR
• How to choose targets for subscriptions & one-off products
• How to view a company's ARR & cashflow
• How to switch between viewing ARR or one-off values in the sales board

Whether to choose ARR or MRR

Your chosen option calculates the subscription value, by year or by month. It then displays that value inside opportunities, orders, companies, and contacts.

The recurring revenue model requires the Subscriptions add-on (included in some older plans). To activate it, you need Administrator status:

1. Click Settings → Account → Account settings.
2. Under Sales model, select Recurring revenue and choose ARR or MRR.
3. Click Activate sales model.

Read more in Sales models in Upsales.

How to include/exclude churn & contractions when calculating ARR/MRR

You can select whether to include the value of lost customers (churn) and decreases (contractions) in ARR/MRR in the calculation:

How to choose targets for subscriptions & one-off products

The main metric used by most subscription-based companies is either ARR or MRR. A value that comes from subscriptions. Want your sales teams to focus on selling subscriptions? Set this target.

Subscription and one-off targets only appear after you've chosen a recurring revenue model.

The contribution margin sales model shows Contribution margin targets instead. If you combine recurring revenue with contribution margin, all three target types appear.

You'll need to be an Administrator or team leader to view these menu options

• CRM → Targets → Subscriptions
• CRM → Targets → One-off

A product counts as One-off until you set it to Subscription. To set a product's type (you need Administrator status):

1. Click Settings → CRM → Products and click the product.
2. Under Product type, select One-off or Subscription.
3. Click Save.

Users see their progress in the target summary in the top bar. With the recurring revenue model it shows their subscription target, one-off target and completed appointments by default. Click it to open the full target summary.

How to view a company's ARR & cashflow
 

Enter a company page in Upsales and click the Sales tab (only visible if there are any historical sales):

You can now view and filter sales-related data for revenue, growth, and cash flow:

How to switch between viewing ARR or one-off values in the sales board
 

With the Recurring Revenue sales model you are now able to switch between showing subscription values or one-off values on the sales board.

1. Click Sales & CRM → Sales board:
   
   
    
2. Click the dropdown next to Sales model to switch between ARR (or MRR, if that is the model you activated), one-off, and total order value:
   
   

Sales forecast

You can also view projections by clicking the forecast:

You can view and edit the forecast by users, opportunity stages, and periods: