Create a Coupon

Coupons in Ordway apply a discount or free periods to Subscriptions or Orders.

Example: Coupons can be used to apply negotiations made during the sales process or adjust active contracts to prevent churn. Coupons can be limited to a specific Product or Plan or available for use across all Products and Plans.

Preconditions:

1. Coupons must be enabled in Menu > Setup > General Settings. Reach out to Ordway Support to have this feature enabled.
2. Once enabled, Coupons must also be associated with a Product in Menu > Setup > General Settings. The Product selected will define the GL impact on the Invoice when Coupons are applied to Subscriptions or Orders.

Coupons & Invoicing

Coupons impact the Invoice Journal Entry. The GL accounts that the Coupon posts to can be set up in the Accounting Information section on the Product defined in the above precondition. 

Because a Coupon reduces the amount of the Invoice, the DB account of the Invoice Posting will be credited and the CR account of the Invoice Posting will be debited for Invoices impacted by a Coupon.

Coupons & Revenue Recognition

A Coupon results in net revenue being recognized per the Revenue Rule on the applicable Charges. The discounted portion of revenue will not post to a GL account.

Example: An annual charge of $10,000 discounted by $1,000 will result in net revenue of $9,000 being recognized according to the rule defined on the charge.

When a Coupon reduces the Billing Schedule to $0 for a period (i.e. a Free Trial or %100 off), Net Revenue can still be recognized depending on the charge’s Recognition Start Date. If the Recognition Start Date is set to the Charge Start Date, revenue will still be scheduled for periods offered for free. 

Example: A 12 month contract with a monthly charge of $1,000 is offered free for a trial period of 1 month, so the resulting TCV is $11,000. If the Revenue Rule is defined as straight-line over the 12-month term and begins on the charge start date, net revenue of $916.67 is recognized in the free trial period.  

Steps:

1. Navigate to Menu > Products & Plans > Coupons.
2. Click Add.

3. Complete the following fields:

• Coupon Code: Enter a value that will be used to apply this Coupon to orders and subscriptions
• Display Text: Enter a name for the Coupon. 
• Discount Type: Select the type of discount to be applied when the Coupon is used
  
  • Fixed Amount Off defines the discount in terms of amount
  • Percentage Off defines the discount in terms of %
  • Free Trial defines a period of time that a product or plan is offered for free
• Discount Percentage or Discount Amount: Quantify the discount in terms of a % or a fixed amount.
• Free Trial Length: For the Free Trial discount type, define the trial period in terms of Days, Weeks, or Months. This is the length of time the Product or Plan will be offered for free.
• Duration: Define the length of time to apply the discount.
  • Select Forever to apply the discount to every subsequent billing period.
  • Select Limited to define the specific number of billing periods the discount is applied to.
• Discount Criteria: Define the Specific Plan or Specific Product the Coupon is valid for. Select Any Plan or Product if the Coupon can be applied to any offering.
• Expiration Date: Select the date on which the Coupon expires and can no longer be applied to Orders or Subscriptions. When left blank, the Coupon does not expire.
• Usage Limit: Define the number of times a Coupon can be used before it can no longer be applied to Orders or Subscriptions. When left blank, the Coupon can be used unlimited times.

 4. Save when finished.