Specifying price

You can specify price for any business service. The price of providing a service is usually based on the cost of the service. However unlike cost, the price amount can remain constant over a fiscal time period.
You can use the Price information for the following analysis:

• Generate bill of IT
   Provides information to IT for amount that they can associate with a service offering. The IT department can forecast revenue generated for a service. This information is especially useful for consumers of a service. They can plan and allocate budgets based on advance information.
• Generate profit and loss information for a service
   IT departments can compare price and cost information to generate profit and loss reports. These reports compare the price earned by the IT department for a service and the cost that they incurred for the same service.
• What-if comparison of scenarios
   You can use different price information in multiple scenarios to compare profit and loss associated with using cost models in each scenario. Based on this analysis, you can decide the most efficient scenario to use for your organization.

To specify price for a cost model

1. In the cost model in the Cost Model Hierarchy pane in the IT Cost Modeler window, select business service.
2. In the Cost Model Details pane, click the Price tab.
3. From the Price Currency menu, select the currency you need to use to specify the price value.

4. To specify unit price values, click in a cell in the Unit Price row in a Unit Price table.
    This is the first row in the table. It displays data in the currency format that you select in the Price Currency field.
   The software calculates the corresponding value in the currency format set for display and displays it in the Price in display currency row. 

   Warning

   You can use the Settings option in the main window to select the currency format to display.

   The third row in the Unit Price table is Actual Unit Cost. The application calculates the actual unit cost by dividing total expense(cost) by consumption for that fiscal period.
   The last row is Variance. This is the difference between unit price and unit cost.

5. Specify all Unit Price values, if required, and click Apply.
6. Click Save.