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Glossary S

Subscription Upgrade

When a customer moves to a higher-priced plan or adds more features, seats, or services to their existing subscription.

OrdwayJuly 23, 2025

Glossary M

Monthly Recurring Revenue (MRR)

The predictable, recurring revenue software or subscription companies earn every month.

OrdwayJuly 23, 2025

D Glossary

What It Means (Simple Explanation) Deferred revenue is money you’ve been paid—but haven’t earned yet. If a customer pays upfront for a year, you can’t call it revenue right away. It sits as a liability…

OrdwayJuly 23, 2025

Glossary N

Net Revenue Retention (NRR)

Measures how your revenue from existing customers changes from expansion, contraction, and churn.

OrdwayJuly 23, 2025

A Glossary

Annual Recurring Revenue (ARR)

The total predictable revenue a SaaS company expects from subscriptions in a year.

OrdwayJuly 23, 2025

Glossary U

User Based Pricing

Pricing is based on how many registered users or seats a customer needs for a subscription or software.

OrdwayJuly 22, 2025

Technology

Merge.Dev Case Study

Merge's finance team gained better visibility into aging receivables and was able to accelerate cash flow using customized dunning workflows. Merge was also able to automate revenue recognition calculations, accelerating financial reporting and reducing its…

OrdwayJuly 21, 2025

Accounts Payable vs. Receivable: 7 Critical Differences for Financial Health

D Glossary

Deferred Revenue Waterfall

What It Means (Simple Explanation) A deferred revenue waterfall is a month-by-month schedule showing how unearned revenue will be recognized over time. It turns your deferred revenue liability into a clear forecast of future revenue.…

OrdwayJuly 17, 2025

C Glossary

Credit Memo vs Debit Memo

What It Means (Simple Explanation) A credit memo reduces what a customer owes you. A debit memo increases it. In SaaS, both are adjustments to invoices—used when things change after the original bill goes out…

OrdwayJuly 17, 2025

Glossary S

Subscription Pause

Temporarily suspends billing and service for a customer—without canceling their contract.

OrdwayJuly 16, 2025

Resources

Subscription Upgrade

Monthly Recurring Revenue (MRR)

Deferred Revenue

Net Revenue Retention (NRR)

Annual Recurring Revenue (ARR)

User Based Pricing

Merge.Dev Case Study

Deferred Revenue Waterfall

Credit Memo vs Debit Memo

Subscription Pause

Ordway Subscription Billing Software

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