Accounting Information for Plans & Subscription Charges

Overview

Ordway allows you to override the default Accounting Information configured for products at the charge level. Plans and subscription charges initially inherit the accounting information from the selected product. You can modify the inherited accounting information, including Revenue Rules, Recognition Dates, General Ledger (GL) Accounts, and Fair Market Value (FMV) settings for recurring charges.

Note: Accounting information configured at the product level can also be modified.

Configure Accounting Information

Procedure

1. On the left navigation menu, click Plans & Charges. The Plans & Charges page is displayed.
2. Click ADD to create a new plan or edit an existing plan.
3. Add a new charge or edit an existing charge.
4. Click the Accounting Information tab. 

5. Configure the Accounting Information as needed.

   1. Enable or disable Include in Revenue Allocation, as needed.

   2. For recurring charges, configure the Fair Market Value (FMV) and select the applicable FMV Period. Note: Contact Ordway Support team to enable this feature.

   3. Select or clear Use Default from Product based on whether you want to inherit accounting information from the product.

   4. Modify the Revenue Rule, Recognition Dates, and GL Accounts, if required.
      

Fair Market Value for Recurring Charges

For recurring charges, configure the Fair Market Value (FMV) and specify the period to which the FMV applies.

FMV Calculation

Ordway uses the configured Fair Market Value (FMV) and FMV Period to calculate the standalone selling price used for revenue allocation. If the selected FMV period differs from the billing frequency, Ordway automatically prorates the FMV to determine the allocated value for the recurring charge.

Notes

• The FMV Period field is displayed only for recurring charges. 

• When Use Default from Product is selected, the Fair Market Value is inherited from the product. However, you can still configure the FMV Period for the recurring charge.

Configure Transaction Types

1. Review or modify the Transaction Types and GL Accounts, if required.

2. The transaction types are inherited from the selected product.
   Note: A maximum of three rows can be configured for the same transaction type.

3. 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
4. Click +Add Transaction Row to add an additional transaction. 
   Note: A maximum of nine transaction rows can be configured.
   

5. To remove a transaction, click the Delete (🗑) icon.
   

6. Click Save.