Finance definitions, written down.
The five Harnace starts with, as we count them unless you say otherwise. Every company confirms or changes each one before it's used, and every change is kept.
Example companyThe card on this page shows ARR at Marlow Systems, a company we invented to show how a finance team uses Harnace. Its people and numbers are made up.
- 01
Customer
One customer per company that pays, however many names it has in the CRM.
The trap Two CRM accounts for one company count once.
- 02
ARR and how it moves
The annual value of every contract line in service at the month end, and what moved it: new, expansion, contraction, churn.
The trap A booking isn't revenue, and it isn't ARR until service starts.
- 03
ACV
A contract's value for one year of its committed term.
The trap One-time fees stay out, so a setup fee never inflates it.
- 04
TCV
A contract's value over its committed term only.
The trap Never the years a customer might stay. Only the years they signed for.
- 05
Credited bookings
The bookings a rep is credited with under the plan in force when the deal closed.
The trap A renewal is credited the way the plan credits renewals, never at its whole contract value.
ARR
Annual recurring revenue, as Marlow Systems counts it
- Source
- Ledger · contracts table
- Object
- Contract line
- Counts from
- Service start date
- 100% filled
- Includes
- Subscriptions, committed usage and recurring services
- Excludes
- One-time fees and overages
- Value
- Monthly fee, times twelve
- Renewal date
- Contract end date
- 71% filled, below the threshold
- Approved by
- Dana Whitfield, VP Finance, 28 May 2026
An illustration. Choose an earlier version on the band to see how a change becomes a new version and the one before stays on the record. Marlow Systems's ARR in force is version 1, approved by Dana Whitfield on 11 October 2026.