Finance Setup

To use Ordway’s finance capabilities, ensure that Enable Finance found in Menu > Setup > Finance is toggled ON.

Once enabled, the Finance module appears in your navigation menu and several configuration settings relating to journal entry generation and accounting setup are available.

Journal Entry Generation

Ordway supports two separate options for generating journal entries; Automatically on every transaction or Manually using Journal Entry Runs. When automatic journal entry generation has been selected, journal entries are generated for transactions in real-time using predefined Default GL Accounts selections and Accounting Information setup, which is configured in Products and can be overwritten when creating Plan and Subscription Charges. Manual journal entry generation can be accomplished by using Journal Entry Runs, which can be configured to run or scheduled by users to run at predefined intervals. Learn more about creating Journal Entry Runs here.

Enable Contract Edits in Closed Financial Periods

Create and modify contracts with effective dates that fall in a closed financial period. The system will capture the changes and automatically adjust the underlying transactional data to update to the next open financial period. Ordway currently only supports the Catch-up method for catching up billing and revenue schedule lines that should have been invoiced and recognized in previously closed financial periods.

Enable Fair Market Value (FMV) Pricing

FMV pricing allows you to set the standalone price for a product at which it would be sold separately to a customer. When sold separately, each of those services have an individual value as determined by your accounting requirements. The FMV price can be overridden when building a Plan or adding a Subscription Charge. Learn more about FMV pricing here.

Multi-currency Accounting

Invoice Currency Conversion

Determine how Billing Schedules should be converted into your base currency by selecting one of the following: 

• Subscription/Order Rate: Billing Schedules will be converted using the exchange rate stored with its corresponding subscription or order.
• Daily Rate: Billing Schedules will be converted using the Daily Rate. 
• Average Exchange Rate: Billing Schedules will be converted using the Average Exchange Rate (AVG) in the Financial Period that revenue will be posted in.

Revenue Schedule Currency Conversion

Determine how Revenue Schedules should be converted into your base currency by selecting either: 

• Subscription/Order Rate: Revenue Schedules will be converted using the exchange rate stored with its corresponding subscription or orders.
• Average Exchange Rate: Revenue Schedules will be converted using the Average Exchange Rate (AVG) in the Financial Period that revenue will be posted in.

• Exchange rates will be stored with Revenue Schedule Lines and used to convert Journal Entry transactions into your base currency.

Automate Realized / Unrealized Gain / Loss for Foreign Currency Transactions

Enable the generation of Journal Entry transactions to capture realized and unrealized gains and losses for non-base currency invoices and payments. A default GL account must be selected in the Default GL Accounts section of this screen. All realized and unrealized gain and loss Journal Entries will be generated in your company's base currency. 

Default GL Accounts

This section allows you to designate the default GL Accounts to be used in journal entries for the listed transactions. Read more about Default GL Accounts. 

• Income Account - Default credit entry for income posting
• Accounts Receivable - Default debit entry for invoice posting
• Deferred Revenue - Default credit entry for invoice posting and debit entry for revenue schedule posting
• Unbilled Accounts Receivable - Default debit entry for Order / Contract posting
• External Payments - Default debit entry for external payments
• Electronic Payments - Default debit entry for electronic payments
• Payment Transactions Fees - Default credit entry for capturing transaction fees associated with electronic payments
• Credits - Default credit entry for credit posting
• Refunds - Default credit entry for refund posting
• Taxes - Default credit entry for sales tax posting