A product is an item or service you sell such as physical items, a fee based service, or anything else with a SKU. At Ordway, we sell our software platform as a product which can be paid monthly, annually, or for a longer period.
Product configuration is central in Ordway as it governs the Accounting for Contracts, Invoices, and Revenue Recognition.
There are three important considerations to evaluate when creating a Product in Ordway:
- Taxable Treatment - Determines if invoices charge tax to line items associated with a Product. Read more about Taxes.
- Revenue Configuration - Revenue Recognition Rules determine how revenue is recognized; either on invoicing or deferred based on an amortization schedule.
- Accounting Treatment- Specify the GL Account the transactions will book Journal Entries against. Read more about Chart of Accounts.
Example: This product is a Delivery Fee charge:
Expand or collapse Product details as needed.
Add Products to a Plan
Products can be sold on their own as one-time charges or can also be included in Plans. Plans contain additional fields that define the charge behavior, such as the frequency of which you charge for the Product; see Plans.
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