Revenue recognition is usually aligned with billing periods in most contracts. However, there are some business scenarios where it becomes necessary to separate the start and end dates for revenue recognition from a billing period. An example would be when billing is initiated and payment is collected prior to product being delivered or services being rendered.  

Custom start and end dates for revenue recognition allow you to define revenue recognition time periods (at the Subscription charge level) separately from start and end dates for billing periods. 

In Ordway, custom start and end dates for revenue recognition are implemented  at the Subscription Charge level and take effect once a Contract has been activated. This setting is not controlled at the Product or Plan/Charge levels.

Custom Start & End Date Impact

It is imperative to be aware of how custom revenue recognition dates can impact financial records in Ordway.  Impacts resulting from the use of custom Start & End dates for revenue recognition include:

• When revenue has not been posted:
  • Existing Journal Entry lines will be deleted and re-created.

• When revenue has been posted & Financial Period is Open:
  • Adjusted Journal Entries are created in line with these changes in the Open Financial Period.

• When revenue has been posted & Financial Period is Closed:
  • Adjusted Journal Entries are created in the first Financial Period that is open following the closed Period.

Enable Custom Revenue Recognition Start and End Dates

1. Navigate to Menu > Setup > Finance.
2. Toggle Custom Revenue Recognition Start and End Dates ON. 
3. Save when finished.

Create Custom Start & End Dates

Individual Subscriptions charges can be structured to include a custom Start and End Date for revenue recognition. 

Custom Start & End Date Availability

• Custom Start Date and End Date are available for One Time Charges and Recurring Charges only.
  •  
  • When the Custom Start Date is left blank for either One Time or Recurring Charge Types, the corresponding Revenue Schedule Lines are marked Pending until a Custom Start Date is provided. 

Restrictions

This feature is not applicable for the following:

• Usage Charge Types
• When Deferred Start Date is enabled
• Revenue Rules circumstances: 
• Recognize on Invoicing
• Revenue Rules with Fixed Periods
• Custom Revenue Rules

Preconditions:

Custom Revenue Recognition Start and End Dates must be enabled via Menu > Setup > Finance.

Steps: 

1. Navigate to Menu > Contracts & Orders > Subscription Contracts. 

2. Click Change from the Actions menu for the desired Subscription.

3. Click the Edit icon for the Charge to edit. 

4. Click the Accounting Information tab. 

5. Uncheck Use Default from Plan.

6. Select Custom Date from the Recognition Start Date drop-down menu. 

7. Click the Edit icon for the date and use the date picker to populate the custom Start & End dates.

8. Save when finished.