The monthly-normalised value of recurring subscription revenue under an agreed reporting policy. It is a way to compare recurring business month by month, rather than a record of how much cash arrived that month.
An example
A S$24,000 annual subscription billed upfront represents S$2,000 MRR when normalised evenly over twelve months. Receiving all S$24,000 in January does not make January’s MRR S$24,000.
What to check
Monthly normalisation is different from monthly invoicing, collections or revenue recognition.
In practice
Use one reporting definition for new subscriptions, upgrades, reductions and cancellations. Keep usage charges and one-off services separate unless the reporting policy explicitly explains their treatment.