Define the Charge Price x Quantity relationship

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In the Charge model, you must first define the drivers to the Consumption Feed object, and then define the allocations to the Business Services modeled table and the Business Unit Allocation modeled table.

Define the drivers to the Consumption Feed object

There are three basic types of drivers: cost based charges, budget based charges, and price based charges.

Cost based charges

Cost based charges pass cost to the business user. The costs per service are determined in the Cost Transparency application. Cost based charges may have additional information provided through the Consumption Feed.

  1. If you have not yet added data to the Consumption Feed, go to Add consumption data for Price x Quantity calculations . If you do not intend to provide quantities, append a list of your Service IDs using the same steps.
  2. Follow the steps in Define the Cost model allocations to allocate Cost to the Consumption Feed.
  3. In the Service Library table, set the Pricing Methodology to Cost for all services that will use Cost to determine the charge.
  4. In the Project Explorer , click the Model step in the Business Services table.
  5. Make sure the Charge metric is selected.
  6. Validate that the provided driver now shows values.

Budget based charges

Budget based charges pass to the business user a budgeted charge determined per service. Budget based charges may have additional information provided through the Consumption Feed.

  1. Follow the steps in Add the consumption data .
  2. In the Service Library table, set the Pricing Methodology to Budget for all services that will use Cost to determine the charge.
  3. In the Project Explorer , click the Model step in the Business Services table.
  4. Make sure the Charge metric is selected.
  5. Validate that the provided driver now shows values.

Price based charges

Price based charges multiply a price determined by service and the units of the service that have been consumed. Price based services should have consumption feeds with the units provided through the Consumption Feed.

  1. Follow the steps in Add the consumption data .
  2. Follow the steps in Define the Billable Units model allocations .
  3. In the Service Library table, set the Pricing Methodology to Price for all services that will use (Price x Quantity) to determine the charge.
  4. In the Project Explorer , click the Model step in the Consumption Feed table.
  5. Make sure the Charge metric is selected.
  6. Validate that the provided driver now shows values.

Define the allocations

In the Charge model, you must define the allocation from the Consumption Feed model object to the Business Services model object, and from the Business Services model object to the Business Unit Allocation model object. Use the settings shown in the following images.

Consumption Feed to Business Services allocation

Business Services to Business Unit Allocation allocation

If you do not have any consumption or services wholly attributable to one business unit, then use an allocation similar to:

Otherwise, use this allocation: