SaaS
Monthly Amortization of Reserved Instances
Monthly adjustment for an upfront 1-year 'Reserved Instance' payment for AWS or Google Cloud.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cloud Hosting Expense | Expense (+) | 300.00 | - |
| Prepaid IT Infrastructure | Asset (-) | - | 300.00 |
💡 Accountant's Note
Large SaaS companies pay upfront for 'Reserved Instances' to save money. This entry moves 1/12th of that cost to the monthly P&L.
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Expert Analysis by Qusai Ahmad
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