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Cost models

A cost model is the set of rules, methods, and metrics that tell the application how to allocate expenses to the accounts in the IT chart of accounts.

Cost models are associated with allocations and reports. You can create several cost models and choose the one you want to run the allocation engine against.

Manage different cost models such as Expense Cost Model, Budget Cost Model, Customer Service Management Cost Model, and Field Service Cost Model (for Field Services Management application user) in a single instance for different business needs. These cost models have the following attributes which give you more control:

  • User Group: Associate a cost model to a user group of type ITFM. Anyone with the appropriate financial modeling role can access the cost model (with the associated user group), provided the user is also part of the user group. With this association, you can exercise restriction on users who can access the cost model.
  • Fiscal Period: Associate a cost model to a fiscal unit. The Fiscal Period field in the Data Definition stage of the financial modeling is set based on the fiscal unit that you have selected in the cost model. Hence, you perform financial modeling for different fiscal periods (month, quarter, or a period).
  • Data Source: Define the staged lines source for the cost model. Optionally, you may opt not to define a data source, in which case you can create groomed lines directly or enter the amount directly into the buckets.
Note:

Activate Financial Management for CSM and FSM plugins to use the preconfigured CSM and FSM cost models, respectively, for your financial modeling activities.

  • CSM plugin: ITFM integrates with Customer Service Management providing preconfigured Cost Models and dashboards using the Performance Analytics – Content Pack – Financial Management for Customer Service plugin. With the integration of CSM and FM solutions you get:
    • Preconfigured CSM customer account-based and department-based cost models for financial modeling activities.
    • Financial modeling segment definitions such as customer account, product, and assignment group that are used for cost allocation.
    • Cost allocation weighted metrics for CSM rollup.
  • FSM plugin: ITFM integrates with Field Service Management providing preconfigured Cost Models and dashboards using the Performance Analytics – Content Pack – Financial Management for Field Service Management plugin. With the integration of FSM and FM solutions you get:
    • Preconfigured FSM company and product-based cost model for financial modeling activities.
    • Financial modeling segment definitions such as company, product, assignment group.
    • Cost allocation weighted metrics for FSM rollup.