Revenue Recognition Software

Comply with ASC 606 and IFRS 15 Accounting Standards

Automate the key calculations for ASC 606 and IFRS 15

Ordway supports US GAAP and international standards for Revenue for Customer Contracts

Multiple element arrangements
Stand-alone selling prices
Deferred revenue schedules
Straight line & event recognition
1

Identify Customer Contracts

Contract details such as price, term, and payment schedule are captured directly from the CRM system.
2

Identify Performance Obligations

Line items from single or multiple element arrangements are converted into clearly defined performance obligations.
3

Determine Transaction Prices

The appropriate transaction price is captured from the customer contract or sales order.
4

Allocate Transaction Prices

Standalone Selling Prices (SSPs) are used to reallocate transaction prices for performance obligations with discounts or bundles.
5

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.
Collage of screenshots of Ordway billing and revenue application

Get a Demo

See Ordway’s revenue recognition software in action. Schedule a 30-minute Ordway demo with one of our sales engineers.

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.

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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.

Frequently Asked Questions

Can Ordway help us switch from cash to accrual accounting?

Yes, many of our customers have switched from cash to accrual to support the needed for audited financials for investors, lenders, or other key stakeholders.  Ordway’s revenue recognition software supports GAAP accounting under the ASC 606 and IFRS 15 standards.  Ordway can supply the journal entries for revenue-related accounts to a general ledger for consolidation and presentation on the income statement, balance sheet, cash flow statement, and others.

Does Ordway's revenue recognition software include a sub ledger?

Yes, our revenue recognition software includes a proper revenue sub ledger, which can house the detailed journal entries for recognized and deferred revenue as well as those generated from billing, collections, credits, and other accounts receivable activities.  Ordway’s sub ledger can be mapped to your chart of accounts and journal entries can be published directly into your GL.
List of integrations >>

Can Ordway report on Non-GAAP metrics such as ARR or MRR?

Yes, in addition to the GAAP accounting Ordway provides for revenue recognition, we can also report on all the popular SaaS metrics that investors want to see.  For ARR/MRR we can report on totals, growth rates, and movements including new business, expansions, contractions, and churn.
Learn more >>

How can we publish journal entries to our accounting or ERP system?

Yes, Ordway can integrate with a number of the most popular accounting and ERP systems including the general ledgers for Quickbooks, Xero, Sage Intacct, and Oracle Netsuite.  Our team will help you map the chart of accounts in your GL to the revenue sub ledger in Ordway as well as products, customers, and .  At month-end (or more frequently), summary or detailed journal entries are published from Ordway to the GL.

Can Ordway publish to multiple general ledgers and/or multiple legal entities?

Yes, Ordway can be configured to published to one or more general ledgers from different accounting software providers.  For example, if you are using Quickbooks in the US and Xero in Europe, Ordway can maintain separate sub ledgers for each legal entity and publish the appropriate journal entries to the respective GLs.

What types of reporting are included with Ordway's revenue recognition software?

Ordway has standard reports for recognized and deferred revenue for all customers and subscriptions.  You can drill down into the details of each customer to understand billing, AR balance, subscription, renewals. Ordway reports can be customized with filters to view selected date ranges, products lines, customer segments, currency types, and other criteria.
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See the industry’s most flexible revenue recognition software in action.