Financial Management for licensed SPM users
Summarize
Summary of Financial Management for licensed SPM users
For Service Portfolio Management (SPM) users with activated Financial Management, the system provides a Service Offering Costing cost model. This model enables you to evaluate spending at each service level, facilitating better financial oversight and decision-making.
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Key Features
- Cost Model Structure: The cost model allows expense allocation from IT Shared Services to Service Offerings using an Equal rollup method. This can be configured as needed.
- Data Entry: Spend information must be entered directly into the model, as there is no default data source from the general ledger unless configured as an optional feature.
- Service Offering Allocation Map: This intermediary table allows for shared service cost allocation based on metrics that include total subscribers, configuration items, and specific service offerings.
Key Outcomes
By using the Service Offering Costing model, you can effectively allocate expenses and generate cost lines for services. This leads to enhanced visibility of service costs, allowing for more informed financial management and strategic planning in your organization's service offerings.
If you are a Service Portfolio Management (SPM) user and have activated Financial Management, then the base system provides you with a Service Offering Costing cost model. Use this cost model to evaluate the amount spent at each level of service. Financial Modeling allocates expenses and generates cost lines based on the level of service for a defined price.
Service Offering Costing cost model
The specifications of the Service Offering Costing cost model are:
- IT shared service segment accounts are sourced from the IT shared service [itfm_shared_service] table.
- Service Offering segment accounts are sourced from the Service Offering [service_offering] table.
- IT Shared Service segment rolls up to the Service Offering segment. However, there are no default rollup overrides.
- All sub-buckets are spread equally to all accounts in IT Shared Services provided by the base system setup.
- There is no data source to this cost model, which means that you should enter the spend information directly into the model and not come from the general ledger. Using the general ledger as a source of spend information is an optional feature that you can configure. See Prerequisites to modify data source of a cost model for more information.
- The expenses are allocated from IT Shared Services segment to the Service Offering segment by Equal method of the base system. By default, the allocation setup provided in the Allocation Setup stage is Equal rollup method. You can configure the rollup method, if needed, to match your specific requirements.
Seeded IT Shared Services
See the list of seeded IT Shared Services.
ITFM prescribed metrics
- Allocate to Service Offering on Allocation Maps
The metric allocates shared service cost to service offering based on the following weighted metric:
Figure 2. Allocate to service offering on allocation maps - The Service Offering Allocation Map [itfm_service_offering_allocation_map] provides a list of all service offering allocations. This intermediary table references IT shared services from IT shared service [itfm_shared_service] table and service offering from the Service Offering [service_offering] table.
- The prescribed metric performs a sum of shared services and weights the costs accordingly to the receiving service offerings.
- Allocate to Service Offerings on related CIs
The metric allocates shared service cost to service offerings based on the following weighting table:
Figure 3. Allocate to service offering on allocation maps - The CI Relationship [cmdb_rel_ci] table provides a list of all relationships between configuration items.
- The prescribed metric performs a count of configuration items and weights the costs accordingly to the receiving service offerings.
- Allocate to Service Offerings on Total Subscribers
The metric allocates shared service cost to service offerings based on the following weighting table:
Figure 4. Allocate to service offerings on total subscribers 
- The Service Offering [service_offering] table provides a list of all service offerings.
- The prescribed metric performs a sum of all subscribers and weights the costs accordingly to the receiving service offering by Sys ID.