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This documentation supports the 20.02 version of Remedy Asset Management.To view an earlier version, select the version from the Product version menu.

About charge-backs

Charge-backs are invoices for charging departments or cost centers for the IT CIs required to support their business processes. The IT group can use charge-backs to recover expenses from departments that use their CIs or services. Charge-backs help show the value of IT services to departments within the company who use those services. During each period, the financial manager reviews the costs and generates a preliminary charge-back invoice for the business unit review. Then, the financial manager sends the charge-back invoices to the appropriate business units. When the invoices are approved, the financial manager can send them to the accounting department to post to the general ledger.

Related topic

Generating-charge-back-reports-and-invoices

Financial managers can generate charge-back invoices for the expenses incurred. They can also charge an additional amount to cover the cost of their services and other indirect costs. This additional amount is called a charge-back percentage.

For example, suppose an IT department orders a $2,000 laptop for an employee. The IT department might generate a charge-back invoice for the employee's department for $2,000. Or, the IT department can add a charge-back percentage, such as 10%, to the purchase price to cover the expense of purchasing and configuring the equipment. In this example, the charge-back invoice to the other department would be $2,200. You can add a charge-back percentage when you generate a charge-back invoice. 

 

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Remedy Asset Management 20.02