Revenue recognition software

ASC 606 and IFRS 15

Subscriptions, usage-based pricing, and recurring revenue

Automate the key calculations for ASC 606 and IFRS 15

Ordway revenue recognition supports

Multiple element arrangements
Stand-alone selling prices
Deferred revenue schedules
Straight line & event recognition

Identify Customer Contracts

Contract details such as price, term, and payment schedule are captured directly from the CRM system.

Identify Performance Obligations

Line items from single or multiple element arrangements are converted into clearly defined performance obligations.

Determine Transaction Prices

The appropriate transaction price is captured from the customer contract or sales order.

Allocate Transaction Prices

Standalone Selling Prices (SSPs) are used to reallocate transaction prices for performance obligations with discounts or bundles.

Recognize Revenue

Revenue is recognized ratably across the contract using straight-line or exact days approach or at a point-in-time such as invoicing.

Rules-based revenue recognition

Configure rules to automate how and when revenue is recognized. Create deferred revenue schedules based upon the products, prices, and terms in the customer contract.

Recognize over time

Straight line, exact days, or fixed period models.

  • Straight-line: (Prorated) For subscriptions and other long-term contracts, distribute revenue evenly across each month with prorated partial periods.
  • Exact Days: (Prorated) For subscriptions and other long-term contracts, distribute revenue based upon a daily revenue amount.
  • Fixed Period: For professional services engagements, recognize in the first few months or any subset of periods in the contract lifecycle.
  • Custom: Configure schedules based upon historical patterns unique to specific business models.

Recognize at a point-in-time

Invoicing, activation, or at project milestones.

  • Upfront: Upon invoice generation, order shipment, service activation, contract start, or other events in the first period of a contract.
  • Milestones: For multi-phased projects, recognize revenue at discrete points in the lifecycle based upon milestones or deliverables.
  • Usage: For variable and consumption pricing models that change month-to-month, recognize the amount to be billed in each financial period.
  • End-of-Term: Backload or recognize in the last period of the contract term.

Revenue sub ledger and GL integration

Record detailed transactions and post to accounting system

Track all revenue-related transactions with journal entries in Ordway’s revenue sub ledger including deferred and earned revenue.

Ordway’s revenue recognition software captures details from invoices, collections, and credits from the billing engine, payment gateway, and accounts receivable modules.

Dedicated sub ledger

Revenue sub ledger, mapped to your chart of accounts, for detailed accounting of invoices, payments, and revenue schedules.

Journal entries

Automate creation of transactional journal entries for income, accounts receivable, deferred revenue, payments, credits.

Post to general ledger

Post individual journal entries for each transaction or just summary level entries to your general ledger or ERP.

Financial close automation

Reduce time and effort required for month-end processes

Close the books faster with automated approaches to controls, reconciliation, and cutoff from Ordway’s revenue recognition software.

  • Event Procedures:

    Integrate with CRM apps to capture new orders, upgrades, renewals, and cancellations to ensure completeness of contract change records.

  • Foreign exchange:

    Capture feeds of FX rates to enable reporting on unrealized and realized gains and losses due to changes in foreign currency exchange.

  • Account reconciliation:

    Query reports to investigate variances in accounts receivable, sales taxes, and cash from payment gateways.

  • Sub-ledger cutoff:

    Perform a journal entry run, identify unposted transactions, lock sub ledger accounts, and close the financial period.

collage of Ordway billing software with deferred and recognized revenue schedules

Reduce audit risk and costs

Transition from spreadsheets to software

Avoid the risks associated with manual processes. The automation from Ordway’s revenue recognition software-provides:

  • Consistent application of revenue policies
  • Stronger security and operational controls
  • End-to-end audit trail of user and system activity
  • Regression testing to reduce risk of errors
  • Historical repository of all invoices and payments

Multiple entities, currencies, and GLs

Scale revenue accounting across geos, business units, and ERPs

With Ordway’s revenue recognition software you can enable growth through M&A and international expansion.

  • Multi-currency:

    Support different functional, transactional, and reporting currencies across invoicing, collections, and accounting activities.

  • Multi-entity:

    Separate accounting for different legal entities with different bank accounts and financial reporting requirements.

  • Multi-ledger:

    Publish journal entries from Ordway’s revenue sub ledger to multiple general ledgers and accounting applications.

  • Multi-jurisdiction:

    Report on sales taxes at the state and local level in the US as well as for GST and VAT in international jurisdictions.

  • Multi-GAAP:

    Generate journal entries that adhere to both US GAAP (ASC 606) and international (IFRS 15) standards for revenue recognition.

infographic characters placing pins on a global map with financial charts

Ordway SOC 2 Certification

An independent accounting firm has reviewed and tested Ordway’s internal controls to confirm that they meet the AICPA’s rigorous requirements for security, availability, and processing integrity.  For more details or receive a copy of the report contact us.

See the industry’s most flexible revenue recognition software in action.