When to use this
This guide is for finance teams whose costs depend on milestones, units consumed, or percentage completion rather than calendar time. Set up a usage-based cost account once, then update it manually each month, or connect a spreadsheet so the figures sync automatically - from Usage-based costs: Connect Google Sheets or Usage-based costs: Connect Microsoft Excel. ScaleXP recognizes the cost on each bill based on the usage data you supply rather than line item dates.
For bills that should simply spread over a fixed period, ScaleXP’s standard expense recognition handles this automatically - see Start here: Automate expense journals. For costs incurred before the bill arrives, see Accruals: Add, release, and post accruals.
This video guides you through setting up usage-based cost in ScaleXP.
Step 1: Open the usage-based cost recognition rules
On any expense journal page, such as Prepayments or Cost Accruals, click the three dots at the top right and select Usage Based Recognition. The Configure Usage Based Cost Recognition Rules window opens.
Once an account is set up, you can also open these rules from the cog at the top right of the Update Usage Based Costs page.
Step 2: Choose your usage data source
Select whether to use manual entry, Google Sheets, or Microsoft Excel as your data source:
- Manual - enter or adjust allocations directly on the Update Usage Based Cost page each month.
- Google Sheets - connect a template sheet that syncs daily; see Usage-based costs: Connect Google Sheets.
- Microsoft Excel - connect an Excel Online template through your Microsoft 365 account; see Usage-based costs: Connect Microsoft Excel.
Step 3: Choose your input currency
Select whether you wish to update your costs in the invoice currency or the currency of your accounting system.
Step 4: Select the GL account
Select the GL account you want to flag as a usage-based cost account.
ScaleXP then recognizes every bill in that account, including earlier bills, using the usage data you supply instead of its standard text recognition. Those bills move from the expense journal pages to Update Usage Based Costs.
Step 5: Add additional usage-based accounts, if needed
To add another usage-based cost account, click Add Usage Based Account and select the next GL account.
How to revert an account to standard cost recognition
- In the Configure Usage Based Cost Recognition Rules window, click the bin icon next to the account.
- Click Delete to confirm.
ScaleXP goes back to standard expense recognition for that account's bills, in every month shown, not just from now on. Review your next expense journal before posting, as it may include changes to earlier months.
Step 6: Allocate usage-based spend
If using Google or Excel, return to the main Update Usage Based Cost page and follow the matching guide to create and connect your template.
- See Usage-based costs: Connect Google Sheets and Usage-based costs: Connect Microsoft Excel.
- Connected spreadsheets sync automatically each day - or on demand with Sync Now.
For the ongoing month-end flow and manual entry updates, see Usage-based costs: Update.