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Write an ARR definition card that excludes one-time and usage revenue

  • For FP&A and financial analysts
  • You practice Asking for a format you can use
  • Time about 5 minutes
  • Level Beginner

About this exercise

You're documenting how the company defines ARR. Write a prompt for a plain-text definition card with exactly these labels, one per line: "Name:", "Formula:", "Includes:", "Excludes:", "Source:", "Owner:". Use the final policy, not the earlier draft. Under 70 words. No bullets or numbering.

Common mistakes when you ask AI for this

  • Using the draft formula. The AI defines ARR as last month's revenue x 12. Try: Say: "Use Rae's final definition; ignore the Oct 12 draft."
  • Missing exclusions. The AI lists subscriptions only and forgets setup fees and overages. Try: Add: "Excludes: one-time setup and implementation fees, usage overages."
  • Missing source or owner. The AI leaves out the billing system or Sam. Try: Add: "Source: billing system subscription table. Owner: Sam in RevOps."
  • Markdown extras. The AI adds bold labels, headings and a closing note. Try: Say: "Plain text, no bold. Output only the lines asked for."
  • Trusting the AI to count words. AI is bad at counting and runs past word limits. Try: Ask for fewer words than the real cap and keep each line short.

What a strong prompt includes

  • Names the six labels
  • Uses the final policy
  • Lists exclusions
  • Names the source and owner
  • Caps length

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