Ordway's Fair Market Value (FMV) feature should be utilized by all organizations striving for ASC 606/IFRS 15 compliance. 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 organization.
Example:
A bundle of services may include:
- Annual subscription license
- Recurring support fee
- Professional services
When a bundled package is sold, it is often discounted. The FMV functionality allows for the allocation of each individual service against the total value of the package of services.
Ready to use Fair Market Value? First enable FMV, then add FMV Products to Plans.
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