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What's a Ute; I mean Unit?

Belinda Allen Profile Picture Belinda Allen 2,652

Unit Accounts are non-financial accounts tracked in GP General Ledger.

Look at the image; this is an actual unit account from my accounting system. I track the number of consulting hours in each month. I take the number of non-holiday, weekdays and assume there are 8 consulting hours for each of these days.

I then use the GL Transaction Entry window to enter the hours. A debit increases the number and a credit decreases the number. Since this is NOT a financial account, there is no debit = credits here. It will not be part of your trial balance, so it will not cause your trial balance to be out of balance.

I then use this number in my FRx Analytics, so I see how much revenue I made for each consulting hour available in the month. It's the best way to compare month to month. It takes my revenue and put it down to a common Unit (if you will) that is consistent month to month, regardless of the number of days in the month or the number of holidays.

This was originally posted here.

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