How Ordway supports the ASC 606 accounting standard
The heart of the Ordway billing and revenue automation platform is a powerful billing architecture which encapsulates the complexities of your recurring SaaS and non-recurring contracts: list prices, terms, discounts, obligations, and billing frequency & events.
Ultimately, these contract details are used to generate accurate revenue schedules for your business.
The Ordway platform is flexible and powerful and absorbs the complexities of your business. It supports you and your team as you implement the necessary judgement associated with the ASC 606 accounting standard.
Interpretation of the ASC 606 accounting standard
Ordway platform functionality support
Contract(s) with a customer
Auditable source of truth for contract details
Single view for all recurring and non-recurring contracts with your customer(s)
Create billing events/ milestones
Performance obligations within the contracts
Clear separation of one-time and recurring charges (e.g. – SaaS fee vs one-time onboarding fee vs hardware fee)
Flexibility to absorb mid-contract changes that impact billing and revenue schedules
Transaction price
Documented list price for every product added to a plan sold to your customer
Actual price extended to your customer
Report effective price for what you sell
Allocate revenue to individual performance obligations
Create revenue-schedule rules based on transaction type
Recognize revenue when you meet the performance obligation
Generate accurate revenue schedules
Create summary journal entries to automatically send to your general ledger software
