Allocate expenses using service offering allocation map

  • Release version: Xanadu
  • Updated August 1, 2024
  • 1 minute to read
  • You can allocate expenses based on the actual consumption of services offered using the weighted method. In the weighted rollup method the metric weights the amount by the account values. Use the service offering allocation maps table to store your actual consumption data of the cost for service offerings.

    Before you begin

    Role required: cost_transparency_analyst

    About this task

    Although the base system provides you with the default Equal method to roll up the expenses from the IT Shared Services segment to the Service Offering segment, you can also opt for Weighted rollup method. In this method, the expenses from the IT shared service segment are allocated to the service offering segment based on the consumption data that you have stored or entered in the Service Offering Allocation Map [itfm_service_offering_allocation_map] table. In this case, the expense is allocated based on the weightage of consumption. Therefore, cost is divided using Allocate to Service Offering on Allocation Maps metric and the Service Offering Allocation Map table that has the consumption data is used to weight the metric.

    Procedure

    1. Navigate to All > Financial Modeling for SPM > Service Offering Allocation Maps.
    2. Click New.
    3. On the form, fill in the fields.
      Table 1. Service Offering Allocation Map form
      Field Description
      Allocation Weight Expenses allocated based on a weighted calculation.
      IT Shared Service Segment from where the money is allocated.
      Service Offering Segment to which the money is rolled up.
    4. Click Submit.

      For more information on the calculated spend per offering and to configure the estimated spend offering cost source, see Financial Management for Service Owner Workspace.