Revenue Recognition Software
Subscriptions, usage-based pricing, and recurring revenue
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.
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.
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.
