Negative usage
You can enter usage as a negative quantity value. The effect of the negative usage quantity is different based on whether the usage is used for billing or revenue recognition.
Related information
Related topics
Quantity-based billing - variable
- You cannot use a negative usage quantity to create a negative amount on an invoice. To create a negative usage amount on an invoice, use a negative billing price list entry.
- You cannot add a negative usage record that reduces the total quantity used to a quantity that is less than 0.
- For termed contract lines: If the total usage for a contract line for a period is negative, negative usage will only affect billing when the usage quantity is recurring and/or when the usage quantity resets after renewal.
For example, it can reduce recurring usage billed each period or reduce the system counter that determines which price tier should be used for the usage. Learn more about how the system determines billing quantities.
- For evergreen contract lines: If the total usage for a contract line for a recurring billing period is negative, it has no effect on billing. If you invoice a recurring billing period and then add negative usage to the same recurring billing period, the negative usage will not combine with usage in a subsequent recurring billing period. In this scenario, create a credit contract line that does not recur.
Quantity-based billing - committed
- You can use a negative usage quantity to create a negative amount on an invoice.
- You cannot add a negative usage record that reduces the total quantity used to a quantity that is less than 0.
- If you include a committed quantity billing contract line in an MEA allocation, you cannot add a negative usage record for it. MEA allocations do not support negative amounts associated with committed quantity billing.
Quantity-based revenue recognition
- You can enter a negative usage quantity to reduce the amount of revenue already recognized for the contract line. The exception is that if the contract line is also using committed quantity billing and the contract line is participating in an MEA allocation, you cannot add a negative usage record for it. MEA allocations do not support negative amounts associated with committed quantity billing.
- You cannot post a negative quantity that reduces the currently recognized amount for the contract line to a value less than 0.
What to do when you cannot add a negative usage record
There may be times where you want to add a negative usage quantity to adjust a previously invoiced usage record, but cannot because of restrictions. For example, MEA allocations do not support negative usage quantities associated with committed quantity billing lines.
In these situations, see Adjust usage values.
