Revenue Schedule Reconfiguration: Usage Billing

Contents

• Overview
• Key Features
• How It Works
• How to Use This Feature

Overview

The Revenue Schedule Reconfiguration feature enhances how usage-based revenue is tracked and managed in the system. This feature creates a direct relationship between billing and revenue schedules, ensuring they remain perfectly aligned throughout the billing cycle. By tying each billing schedule line to its corresponding revenue schedule, the system now follows accounting best practices more closely and provides greater visibility into your financial data.

Feature Availability

This feature is available behind a feature flag. Contact Ordway Support to enable it for your organization.

Key Features

Usage Summary on Billing Schedule Lines

The Usage Summary feature displays all usages added for a specific billing period. This gives you clear visibility into what usage data contributed to each billing line.

Revenue Allocation on Billing Schedule Lines

The Revenue Allocation feature shows how revenue from each billing line is distributed across the corresponding revenue periods. This helps you understand how your billing directly impacts revenue recognition.

Billing Details on Revenue Schedule Page

The Billing Details section on the revenue schedule page displays the amount contributed by billing lines for each specific revenue period, creating a complete picture of your revenue sources.

Track User Edits

The system now tracks all user edits along with the source of the edit (UI, Import, API) on:

• Billing lines (unit price, quantity, discount, new lines)
• Revenue lines (changes in period revenue)

If the system automatically recalculates billing or revenue values, the edit tracking for the recalculated values is reset.

Automatic Revenue Adjustment for Usage-Based Charges

When a Billing Schedule Line (BSL) for a usage-based charge is manually updated, Ordway recalculates the associated revenue for the revenue periods within the Billing Schedule Line Start Date and End Date. The recalculation uses the configured revenue recognition rule to keep the billing and revenue schedules synchronized.

Revenue Period Allocation

The system allocates revenue across revenue periods based on the usage period, ensuring accurate revenue recognition across billing cycles.

Audit Logging

All changes and updates are logged, providing an audit trail.

How it Works

Usage-Based Charges

For usage-based charges, the system creates a link between Billing Schedule Lines (BSL) and Revenue Schedule Lines (RSL) for a given period, storing the amount contributed by each BSL to the corresponding RSL.

When usage data changes through:

• New usage creation
• Usage updates or deletions
• Contract changes
• Manual edits

The system automatically updates the related revenue schedules to maintain alignment.

Revenue Calculation Logic

The revenue calculation logic differs based on the charge type:

For Usage-Based Charges

For usage-based charges, per-period revenue is calculated using the configured revenue recognition rule and the Billing Schedule Line (BSL) Start Date and End Date. Revenue is allocated only within the billing period represented by the Billing Schedule Line.

When a Billing Schedule Line is updated manually, Ordway recalculates only the revenue periods that fall within the updated Billing Schedule Line Start Date and End Date. During recalculation, Ordway also updates the invoice-to-billing revenue mapping to maintain the relationship between billing schedules and revenue schedules.

If billing is overridden, the system tracks the modification and identifies it as a user-initiated change.

How to Use this Feature

Enable the Feature

This feature is controlled by a setting in your company’s finance configuration. Contact Ordway Support to enable it.

View Usage Summary and Revenue Allocation

1. Navigate to the Billing Schedule Page. 
2. Select a Billing Schedule Line (BSL) to view the associated Usage Summary.
   
3. Click on the Revenue Allocation section to see how revenue is distributed across periods.
   
   

View Billing Details on Revenue Schedule Page

1. Navigate to the Revenue Schedule Page.
   

2. Select a Revenue Schedule Line (RSL) to view the associated Billing Details.
   

Edit Billing Lines and Automatically Adjust Revenue

1. Go to the Billing Schedule Page and select a billing line.

2. Update the unit price, quantity, or discount.

3. The system automatically recalculates the revenue allocation for the affected revenue periods based on the configured revenue recognition rule.
   

4. A prompt displays notifying you that the system will automatically adjust the revenue based on the changes done to billing schedule line(s).

5. An icon will be shown next to Amount for the Billing Schedule line indicating that the line has been edited by the user. The audit log will show who made the change and through which method (UI, Import, API)
   

Edit Revenue Allocation 

From the Billing Schedule page, you can click on the view under the revenue allocation column for a particular billing schedule line to manually adjust and allocate revenue to different periods. Editing the revenue allocation automatically updates the corresponding period revenue.