Defrr is essential a smart sub-ledger. It can operate independently but works best as middleware between your accounting package (Xero, Quickbooks) and your systems for order/deal flow (Hubspot, Stripe etc).
Integral to Defrr is the concept of contracts. The contracts module in Defrr essentially contains a record of key terms for each of your subscriptions or deals.
We call key information captured in contracts the "Critical 10":
The Entity (1 Point)
1. Customer Name: the organization or entity purchasing the product or service.
The Product DNA (5 Points)
2. Product Name: the description of the product or service.
3. SKU: the unique code for the product.
4. Quantity: the quantity being purchased i.e. seats, licences etc
5. Price: the standard price per quantity unit (above) from your company price list.
6. Discount: the percentage discount to be applied to the standard unit price.
The Timeline (2 Points)
7. Contract Start Date: when the product or service will start to be delivered.
8. Contract End Date and/or Contract Term: When the obligation stops. The Contract Term is usually expressed in months (e.g. 12 or 24).
The Transaction & Movements (2 Points)
9. Invoice Currency: Critical for multi-currency reporting and FX adjustments.
10. Invoice Dates and/or Billing Frequency: When the customer is actually billed (may differ from the start date). Often the invoice dates are obvious and it is common for just the billing frequency to be stipulated in the contract i.e. “Billed annually in advance”
For usage-based contracts a contract placeholder is still created but it is populated each month with actual quantity (usage) and associated pricing.
Whenever a contract is created or updated Defrr dynamically recalibrates the Dashboard - so you always have an accurate view of your key metrics.
As Defrr is integrated with your key systems you can create invoices in your Accounting system in 1-click. It also automates your monthly recognition journal and keeps the liability in your balance sheet always in sync.