Create a Product in Ordway

Create a product in Ordway to define its pricing, tax treatment, revenue recognition, and accounting configuration. You can also configure custom fields and Price Book prices when setting up a product.

Contents

• Prerequisites
• Create a Product
• Configure Basic Information
• Configure Custom Fields
• Configure Accounting Information
• Understand Transaction Types
• Configure Price Books
• Save the Product

Prerequisites

Before creating a product, verify the following:

1. Product ID: Ordway generates Product IDs automatically by default. You cannot specify a Product ID during creation unless the behavior is configured otherwise in Ordway settings. See Document Numbering for more information.
2. General Ledger (GL) Account: Create the required GL accounts under Finance > Chart of Accounts before selecting them for a product. See Create and Edit Chart of Accounts
3. Revenue Rule: When Deferred Revenue Management is enabled, a Revenue Rule must exist and be selected. See Revenue Recognition Rules for information about setting up revenue recognition methods and rules.

Create a Product

1. On the left navigation menu, click Products & Plans > Products.
   
2. The Products page is displayed.
   
    
3. Click +ADD. The Add Product page is displayed.
   
4. Populate the product details, custom fields, accounting information, and Price Book prices as applicable.

Configure Basic Information

Complete the fields in the Basic Information section.

Steps:

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

3. Populate the fields.

Basic Information

• Product ID - Auto-generated.
• Product Name - Required text field. 
• SKU - Optional; text field. 
• List Price - Required; number field. 
• Description - Optional; text field.
• Taxable - Toggle; Yes, No
• Status - Toggle; Active, Inactive

Custom Fields

Insert relevant Custom Fields when creating a Product. Read more about Custom Fields. 

Accounting Information

When Finance is enabled in Ordway, you can control these accounting settings. 

• Revenue Rule - Select the rule used for one-time charges and recurring charges. For usage based charges, revenue is recognized in the period it was used. Read more about Revenue Recognition Rules. The default Revenue Rule is Recognize on Invoicing. 
• Recognition Start Date - Determined by the Revenue Rule selected above. Recognize on Invoicing utilizes the Invoice Date. Additional Revenue Rules allow you to select the Recognition Start Date from the following: 
  • Billing Start Date - Begins revenue recognition on the date billing starts, as defined on the subscription. Useful when free trials delay service delivery but billing initiates recognition.
  • Completion Date - Used only for one-time charges; allows invoicing upfront while deferring revenue recognition until a manually entered completion milestone.
  • Charge Start Date - Ties revenue recognition to the charge’s start date on the subscription charge. Supports custom start dates, often used in step-up pricing scenarios.
  • Term Start Date - Anchors revenue recognition to the beginning of the subscription term, regardless of individual charge start dates. Common in multi-year contracts with variable billing schedules. 
  • Contract Effective Date - Starts revenue recognition on the subscription’s Contract Effective Date. This option requires Ordway enablement and is typically used to align revenue with the legal commencement of the agreement, independent of billing or service dates.
• Recognition End Date Options:
  • Charge End Date - Ends revenue recognition on the charge’s designated end date. Can align with the subscription term or use a custom end date for contracts with mid-term pricing changes.
  • Term End Date - Continues revenue recognition until the end of the overall subscription term, regardless of individual charge end dates.
• Set GL Account for each transaction The GL Accounts displayed will vary based on the Revenue Rule selected above. 
• Click the trash can icon as needed to delete an event. 

• Click +Add Transaction Row to add an additional event. 

  Note: A maximum of nine events are permitted. 

Note: Same transaction types are limited to three total. 

Transactions are displayed in the following order to ensure journal entries of the same transaction type are grouped together: 

• Orders / Contracts
• Invoice Posting
• Revenue Schedule
• Credit

Price Books

Enter the corresponding List Price for the Product. Read more about Price Books. 

4. Click Save when finished creating the Product.