Cost model hierarchy

The first horizontal pane on the right, the Cost Model Hierarchy pane, groups all elements related to a service, as shown in the following figure:

The Cost Model Hierarchy pane displays the following information:

• Fiscal Year specifies the fiscal year for the data associated with the cost model. The current fiscal year is the default.
• Fiscal Period specifies the beginning month of the fiscal period.
• Cost Type specifies the type of cost associated with the cost model:
  • Total Expense (Depreciation + Expense; used to calculate chargeback)
  • Depreciation
  • Expense
  • Capital
• Cost Model displays the elements of the cost model in their hierarchy and the data associated with each element in the model. Use the plus (+) or minus (-) signs to collapse and expand the tree.
  • Planned Allocation displays the planned percentage or amount by which an element contributes to a cost model for the specified fiscal period, calculated using the following criteria:
    • Allocations: If the element is used in one cost model, the allocation is 100%. If the element is shared among multiple cost models, the planned allocation depends on the allocations that you specified in the Allocations tab in the Cost Model Details pane for each. For example, an element can be allocated 40% in one model and 60% in another.
    • Allocation method: Automatic, Full, or Manual.
  • Planned Allocated Cost displays the calculated cost associated with the amount of allocation of an element, rolled up from the planned cost of all elements within the cost model.
     For example, consider a cost model with two Asset elements. Both elements are allocated to the cost model at 100%. You specify the planned direct cost (total of both depreciating and nondepreciating) of each asset as $100.00 for each month in a fiscal year. The total cost of each asset for the fiscal year is $1200.00. Therefore, the Planned Allocated Cost is rolled up as $1200.00 + $1200.00 = $2400.00. The following figure shows the calculation of Planned Allocated Cost:
    
    
    

In this example, if one asset is allocated to the cost model at 50%, the total planned direct cost for that asset is calculated as $600.00, resulting in a Planned Allocated Cost of $1800.00 for the service model. The following figure shows the calculation of Planned Allocated Cost with 50% allocation of asset:

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  • Actual Allocation displays the actual percentage or amount by which an element contributes to a cost model. For more information about how actual allocation is calculated, see Specifying allocations.
  • Actual Allocated Cost displays the actual cost associated with the allocation of an element. Similar to Planned Allocated Cost, the Actual Allocated Cost is rolled up from the actual cost of all elements within the cost model.
    
  • Variance displays the difference between planned and actual allocation values.
• The Check Out for Edit icon, , at the right side of the pane, lets you edit the cost model for any changes or additions. When you check out a cost model, it is not available for edits to any other user in the application.
• The Check in icon, , appears when you check out a cost model for edit. You can use this icon to check the cost model in after editing the cost model.
• The Save icon, , at the right side of the pane, saves all applied and unapplied changes to the model.
• The Refresh icon, , applies and displays the most up-to-date cost data for each element in the model, including any changes not yet saved. If you have modified element data in one cost model, using Refresh brings the updated data to another model that uses the same element.

• The Show Chargeback icon, , displays analysis of chargeback related to an organizational unit. 

  Note

  You must associate a consumption metric with the cost model before analyzing chargeback.