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 Google Sheets or 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 How to automate expense recognition journals in ScaleXP. For costs incurred before the bill arrives, see How to automate accrued cost journals.

This video guides you through setting up usage based cost in ScaleXP.

Step 1. Open the usage based cost recognition rules

On the main journals page, scroll down to Update Usage Based Cost under section 4. Review Cost.

Click the open icon (the box with an arrow) next to Update Usage Based Cost to open the page.

Then click on the cog symbol to open the usage based settings.

Note: You can also access this page by selecting Usage Based Recognition from the three dots menu on any Journals Expense page.  You’ll then land directly on the Configure Usage Based Recognition Rules screen for costs.

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 How to set up usage based cost data from Google Sheets
• Microsoft Excel — connect an Excel Online template through your Microsoft 365 account; see How to set up usage based cost data from Microsoft Excel

Follow the matching guide to create and connect your template. Connected spreadsheets sync automatically each day — or on demand with Sync Now.

Step 3. Select the GL account

Select the GL account you want to flag as a usage based cost account. 

Every bill posted to that account from this point forward will be recognized using the usage data you supply, rather than using ScaleXP’s default text-recognition AI.

Step 4. 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

To return an account to standard cost recognition, use the bin icon next to the rule on the Configure Usage Based Recognition Rules screen. 

ScaleXP will revert that account to default text-recognition AI from that month forward; historical postings stay as they were.

Step 5. Allocate usage based spend

Once your accounts are set up, update the usage figures each month — manually, or by letting the Google Sheets or Microsoft Excel sync refresh (daily, or on demand with Sync Now) — and ScaleXP recognizes the matching slice of each bill. For the ongoing month-end flow, see How to update usage based costs.

Related articles

• How to update usage based costs
• How to automate expense recognition journals in ScaleXP
• How to automate accrued cost journals
• How to set up usage based revenue recognition
• How to set and change expense journal settings
• How to set up usage based cost data from Google Sheets
• How to set up usage based cost data from Microsoft Excel