Define a cost model statement item

The cost of the item or service is derived from the allocation lines of cost transparency application. The statement item captures the cost from the segment accounts, specific accounts in a segment, or buckets in an account, which gives you the cost of the statement item for a fiscal period.

Before you begin

Role required: service_charging_analyst

Procedure

  1. Navigate to Financial Reporting > Administration > Statement Items.
  2. Click New in the Statement Items list.
  3. Click Cost Model Statement Item link in the What type of Statement Item? query form.
  4. Fill in the form fields.
    Table 1. Cost Model Statement Item form
    Field Description
    Name Name of the cost model statement item.
    Cost model The cost model used in the cost transparency application from which the cost data are retrieved for the statement item.
    Unit cost metric Calculates unit cost based on the weighted metric.
    Segment Segment for which cost is to be reported.
    Active Enable the check box to make the cost model statement item active.
    Business service The business service that uses the statement item as a configured item.

    You can also define a business service.

    Fiscal unit Defines the fiscal unit to be a month, quarter, or a period.

    Defaults based on the selected cost model.

    Transactional table Name of the transactional table that the segment refers to.

    Defaults based on the selected segment.

    Description A short description of the statement item.
    Filter Criteria
    Segment accounts filter Set the filter conditions to report on the segment accounts that meet your conditions.
    Buckets Filter Set filter condition to the buckets that allocate expenses to the accounts in the segment.
    Sub Segment
    Sub Segment Select a sub segment for the segment you selected.

    Sub segments are segments under the selected segment in the cost model hierarchy.

    Transactional table Name of the transactional table that the sub segment refers to.

    Defaults based on the selected sub segment.

    Sub Accounts Filter Set the filter conditions to report on the segment accounts that meet your conditions.
    Service Charging
    Service owner The person who owns the service and who views the consumption statement items.

    As a service charging owner, you can manage the showback items. You can view the unit cost, cost recovery based on consumption, and set unit price, discount, or surcharge to the showback item.

    Pricing policy Set the pricing policy for the statement item at any of the following levels:
    • Charge item level: The price adjustment that you do in the console reflects at the statement item level.
    • Charge item breakdown level: Reflects the adjusted price at the statement item breakdown level.
    • Account level: The adjusted price is reflected at the account level in the expense lines.
    Pricing policy method Adjust the price based on a percentage of the average unit cost of the segment account. Or, override the average unit cost by unit price pricing policy method.
    Note: If the pricing policy is at account level, then you can opt for percentage based pricing policy method.
  5. Click Submit.
  6. Click Generate Charge Lines to generate charge lines for the cost model statement item.
    1. Enter the fiscal period for which you want to generate the charge lines in the Generate charge lines pop-up.
    2. Click OK.

      The statement lines generated for showback are extension of the expense lines.

  7. Click Update if you have edited an existing record.
  8. Click Delete to delete the record.

What to do next

Create breakdown records for the cost model statement item by clicking New in the Cost Model Breakdowns related list.