How to Record Metered Power Revenue (Tenant Reimbursement)
Accounting for the billing of actual electricity consumed by a tenant's IT equipment, typically measured via smart PDUs.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Accounts Receivable - Tenant | Asset (+) | 8,500.00 | - |
| Revenue - Metered Power Reimbursement | Revenue (+) | - | 8,500.00 |
💡 Accountant's Note
Most colocation contracts charge a 'Base Rent' for the space and a 'Variable Fee' for power. Under ASC 606, if the operator is responsible for providing the power and managing the infrastructure, they are the 'Principal' and record the gross amount billed as revenue. This is recognized monthly based on the actual kilowatt-hours (kWh) consumed by the tenant's racks.
Practitioner & Systems Framework
💻 ERP Architecture
Requires integration between the BMS (Building Management System) or smart Power Distribution Units (PDUs) and the billing engine. The reading must be 'snapped' at midnight on the last day of the month.
⚠️ Audit Flags
Revenue vs. Expense matching. Auditors will compare the 'Total kWh Billed' to tenants against the 'Total kWh Purchased' from the utility company to ensure the margins (or PUE markups) make sense.
📄 Required Documentation
Monthly meter reading logs, utility rate card (per the contract), and the tenant's power usage report.
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Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.
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