Viewing GL Impact: Understanding the Financial Implications of Usage Cycles

After setting up your contracts, you can review the General Ledger (GL) impact of these contracts.

Reviewing Contract GL Impact

To view the accounting details of a specific contract:

1. Click the three-dot (...) menu next to the contract name.

2. Select GL impact from the dropdown menu.

   

Differences in GL Impact between Usage Cycle Monthly and Usage Cycle Contract

Depending on how the contract’s usage cycle is configured, the GL impact can differ in how revenues and expenses are recognized.

GL Impact: Usage Cycle Monthly

The accounting for a monthly usage cycle displays revenues on a month-by-month basis and reflects the associated monthly expenses. Any usage that exceeds the monthly minimum is recorded as additional revenue.

GL Impact: Usage Cycle Contract

For a usage cycle based on the contract, revenues are recognized either all at once if consumed at the beginning or distributed based on resource utilization. This may result in variations between accounting periods.

See Also

See other articles to understand contract and financial impacts:

• Managing Contracts

• Add a Contract

• Create a New Invoice

• Create a Journal Entry

• Cash Reconciliation Reporting