Analyzing chargeback for a service
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As a service provider, you can analyze chargebacks to assess the cost of providing a service to organizational units. The software calculates the cost based on the consumption metric that you specify for the service and the cost models that you create to reflect the usage of the service.
To analyze chargeback for a service
When you select Cost as the View By option, the Chargeback tab displays the following tables:
- Cost Models displays a list of all active cost models related to the service for the specified fiscal period, plus the following information:
- Consumption Metric: Consumption metric linked to the cost model. You can click the name of the consumption metric to see more details.
- Unit of Measure: Unit of measure for the consumption metric
- Fiscal Start and Fiscal End: Beginning and end of the fiscal period for the selected cost model.
- Total Actual Cost: Total expense cost of the cost model, calculated from the actual depreciating and nondepreciating values that you specify in a cost model.
- Unit Cost Summary displays the per-unit cost of the service, calculated by dividing total expense for the fiscal period by the consumption.
- Total expense is the sum of depreciating and nondepreciating cost that is specified for the active cost models for the fiscal period.
- Consumption is the amount consumed for the fiscal period, specified in the consumption metrics linked to the active cost models.
The Unit Cost Summary table displays the following information: - Average Unit Cost: Total expense for the fiscal range divided by total consumption for that range. For example, if the total expense for fiscal year 2009 is 2400 and the total consumption during the entire year is 30, then the average unit cost is 2400/30 = 80.
- Minimum Unit Cost: Minimum value that is calculated for any fiscal period within the specified fiscal range. The software calculates unit cost for each fiscal period in the fiscal range. For example, if the unit cost for March 2009 is 100 and April 2009 is 50 for a fiscal range from March 2009 to April 2009, the Minimum Unit Cost is 50.
- Maximum Unit Cost: Maximum value that is calculated for any fiscal period within the specified fiscal range
- Chargeback Analysis displays the chargeback data related to the service:
- Organizational Unit: All organizational units that consume the selected service. The software uses your specified consumption metrics to display the names of the organizational units.
- Average Consumption: Total consumption over the specified fiscal range divided by number of fiscal periods in that fiscal range. For example, if the total consumption over a fiscal range of one year is 30 pcs., the average consumption for a month is 30/12 = 2.5 pcs.
- Total Chargeback: Unit cost for each fiscal period multiplied by consumption for that period and summing results for all fiscal periods within the selected fiscal range. For example, consider a service with a unit cost of $70.00 for April 2009 and $90.00 for May 2009. The consumption for the month of April is 2 pcs and for May it is 3 pcs. The software calculates the chargeback for the period April 2009 to May 2009 as (70 * 2) + (90 * 3) = $410.00. The chargeback planned and actual values are also displayed as a pie chart and the variance is displayed as a bar chart.
When you select Price as the View By option, the Chargeback tab displays the following tables:
- Cost Models displays a list of all active cost models related to the service for the specified fiscal period, plus the following information:
- Consumption Metric: Consumption metric linked to the cost model. You can click on the name of the consumption metric to see the details.
- Unit of Measure: Unit of measure specified for the consumption metric
- Fiscal Start and Fiscal End: Beginning and end of the fiscal period for the selected cost model
- Total Actual Cost: Total expense cost of the cost model, calculated from the actual depreciating and nondepreciating values specified in the cost model
- Total Actual Revenue: Price multiplied by consumption
- Unit Summary displays the per unit price and cost of the service, the variance between the values, and the following information:
- Average Unit Value: The application calculates the average unit price by dividing total price for the entire fiscal range by total consumption for that range. The average unit cost is calculated similar to that for Unit Cost Summary table.
- Minimum Unit Value: The software calculates the unit price for each fiscal period within the specified fiscal range. The Minimum Unit Price row displays the minimum value that is calculated for any fiscal period. The minimum unit cost is calculated similarly to that for Unit Cost Summary table.
- Maximum Unit Value: Similar to minimum unit price, the Maximum Unit Value column displays the maximum unit price that the software calculates for a fiscal period within the specified fiscal range. The maximum unit cost is calculated similar to that for Unit Cost Summary table.
- Chargeback Analysis displays the following information:
- Organizational Unit: Displays all organizational units that consume the selected service. The software uses your specified consumption metrics to display the names of the organizational units.
- Average Consumption: Displays the average planned and actual consumption and the variance between the two values. The software calculates the average consumption by dividing total consumption over the specified fiscal range by number of fiscal periods in that fiscal range. For example, if the total consumption over a fiscal range of one year is 30 pcs., the average consumption for a month is 30/12 = 2.5 pcs.
- Total Chargeback displays the following information:
- Plan Revenue: Sum of price multiplied by planned consumption over selected fiscal range
- Actual Revenue: Sum of price multiplied by the actual consumption over selected fiscal range
- Variance: Difference between planned and actual revenue
- Actual Cost: Total actual cost for the given fiscal range
- Variance P/L: Difference between actual revenue and actual cost. This value shows the profit or loss incurred for the displayed service.
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