The recognition schedule and date determine how to calculate revenue across a period of time while the date selection determines what day of the month to recognize the revenue

Daily pro-rated - ProRata will calculate the amount of revenue in each month based on a pure daily calculation. 

For instance since February has 28 days it will have less revenue reported than in July.

Monthly pro-rated - ProRata will calculate partial months using a daily prorated calculation while periods that span entire months will have equal amounts of revenue reported.

For instance, given a subscription starts June 16th for one year for $1,200. In June $50 will be recognized (30 days in June but subscription only spans 15 of them). Over the next 11 months, $100 will be recognized with the remaining $50 recognized in June of the following year.

Month-by-month - ProRata will spread revenue evenly across each month regardless of when the subscription starts in the month.

You can preview an example revenue recognition schedule towards the bottom of the page.

You can choose which month your company's fiscal year starts. This is used when running reports.

This should be the amount of time, in months, that your customers remain customers before churning. This is used when calculating metrics such as average customer lifetime value.