Cost Source Workshop
Costs are brought into the Cost Source Object at the bottom of the model, usually from your organization's general ledger. The costs then are allocated to the objects in the model using strategies based on Technology Business Management best practices.
Preparing your Cost Source data
You can get started and prepare your Cost Source data by reviewing the below checkpoints:
- If you haven’t already done so, load your Cost Source Actuals data including:
- GL Actuals (OpEx and (CapEx)
- GL Budget (if applicable)
- GL Forecast (if applicable)
- Chart of Accounts
- List of Cost Centers
We need at least the first month of GL data loaded into Apptio before proceeding.
- Following Apptio standard practices, categorize each raw data set into the category of Cost Source.
- If appropriate, apply a date filter to your GL actuals data.
About the Cost Source Identifier
The Identifier for the Cost Source object is pre-defined and should not be altered. It includes:
- Cost Pool
- Cost Sub Pool
- Account
- Cost Center
- Project ID
- Vendor ID
- UID Metafield
- Fixed Variable
- Expense Type
- Benchmark Identifier
If you need additional granularity (such as down to the individual GL line items), you can populate the UID Metafield with the appropriate level of detail.
About the Cost Source Keys
The keys for the Cost Source Master Data set are all pre-defined and should not be altered.
| Key | Field key is based on | Logic |
|---|---|---|
| Cost Source_Fixed Asset Key | Is Depr Fixed Asset Key Metafield |
IF Is Depr is “yes” THEN Append prefix text of FA_Key to the Fixed Asset Key Metafield ELSE Set the text to CS_FA_null |
| Cost Source_Labor Key | Is Labor Cost Center Cost Pool Cost Sub Pool Labor Key Metafield |
IF Is Labor is “yes” THEN Append prefix text of Labor_Key to the Cost Center, Cost Pool, Cost Sub Pool and Labor Key Metafield ELSE Set the text to CS_Labor_null |
| Cost Source_Vendor Key | Is Vendor Is Labor Is Depr Vendor ID Vendor Key Metafield |
IF Is Vendor is “yes” and Is Labor is “no” and Is Depr is “no” THEN Append prefix text of CS_Vendor to the Vendor ID and Vendor Key Metafield ELSE Set the text to CS_Vendor_null |
| Cost Source_Project Key | Is Project Project ID |
IF Is Project = “yes” THEN Append prefix text of Project_Key to Project ID ELSE Set text to CS_Project_null |
| Cost Source_Other Cost Pool Key | Cost Source_Fixed Asset Key Cost Source_Labor Key Cost Source_Vendor Key Cost Source_Project Key Cost Center Other Cost Pool Key Metafield |
IF Cost Source_Fixed Asset Key = CS_FA_null AND Cost Source_Labor Key = CS_Labor_null AND Cost Source_Vendor Key = CS_Vendor_null AND Cost Source_Project Key = CS_Project_null THEN Append prefix text of CC.Map to Cost Center and Other Cost Pool Key Metafield ELSE Set the text to CC_ITRT_null |
| Cost Source_Benchmark Key | Benchmark Sub-Tower | Append prefix text of “Benchmark” with the Benchmark Sub-Tower |
The above keys are pre-defined and should not be altered. If you need additional granularity, populate the appropriate metafield with the level of granularity you require. Some suggestions include:
- Fixed Asset Key Metafield – Cost Center Code
- Vendor Key Metafield – Cost Center Code
Cost Source Drivers
The Cost Source object has unit drivers that determine what values are fed into the Cost Source object. For the Cost model, there are two drivers. The table below describes the logic in each of the drivers. In 12.6 we updated the Drivers to include Plane and not have the complexity that we have with the current drivers: (R12.6 Change - Expense Type Change)
| Unit Driver | Driver is based on | Logic |
|---|---|---|
| OpEx Fixed | Expense Type Fixed Variable Amount |
IF Expense Type is "OpEx" AND Fixed Variable is "Fixed" THEN Feed in the Amount ELSE Feed in 0 |
| OpEx Variable | Expense Type Fixed Variable Amount |
IF Expense Type is "OpEx" AND Fixed Variable is "Variable" THEN Feed in the Amount ELSE Feed in 0 |
The other models that contain the Cost Source object (Budget, Forecast, CapEx, CapEx Budget, CapEx Forecast) contain similar logic still based on the Expense Type, Fixed Variable, and Amount fields. This means that you must populate these fields in order to drive values into the Cost Source object.
Typically, the Expense Type and Fixed Variable data is mapped as part of the Chart of Accounts and then translated (via a LOOKUP column) into the GL.
Common Computed Columns Needed for Cost Source
Below is a list of computed columns you may need to create. In most cases, the columns are translating data from your Chart of Accounts and Cost Center List into the GL data set. In 12.7 we have reached two new features with regards to configuring the Cost Source and this can help with creating the columns below:
- The Chart of Accounts Master Data now will be leveraged for Machine Learning to help assign Accounts to Costs Pools instead of having to pass a spreadsheet back and forth with a customer. (Machine Learning for Cost Pools).
- In addition with leveraging the Chart of Accounts you can now leverage the Join Step (Join data ) in the customers General Ledger, Budget, and Forecast to pull in the columns typically found in the Chart of Accounts. (Assign Cost Pools and Map Columns)
- Lookup of Account Description from Chart of Accounts into the GL data set
- Lookup of Cost Pool from Chart of Accounts into the GL data set
- Lookup of Cost Sub-Pool from Chart of Accounts into the GL data set
- Lookup of Fixed/Variable from Chart of Accounts into the GL data set
- Lookup of Discretionary/Non-Discretionary from Chart of Accounts into the GL data set
- Lookup of Account Group from Chart of Accounts into the GL data set
- Lookup of Account Sub-Group from Chart of Accounts into the GL data set
- Lookup of Cost Center Owner from Functional Unit list into the GL data set
- Lookup of IT Owner from Functional Unit list into the GL data set
- Is Depreciation Yes/No flag based on Cost Sub-Pool in the GL data set
- Is Labor Yes/No flag based on Cost Sub-Pool in the GL data set
- Is Project Yes/No flag based on Project Code in the GL data set
For all of these computed columns, you may need to create these in the relevant forecast and budget data sets as well.
Map data to Cost Source Master Data
Map your cost source data to the Cost Source Master Data set. Most of the mapping is self-explanatory. There are no unusual mapping requirements. In 12.7 you can now leverage the Column Map function in your raw dataset to map to the Cost Source master Data (Map Columns )
Points to keep in mind:
- Map your GL actuals data set to the Cost Source Master Data set.
Review the Cost Source object on the models
After you have mapped your data to the Cost Source Master data, you can go ahead and review the Cost Source objects on the models. Review the following models and ensure the values are flowing into the Cost Source object appropriately.
- Cost
- Budget
- Forecast
- CapEx
- CapEx Budget
- CapEx Forecast
Review Cost Source reports
The following reports are updated after you have configured the Cost Source object:
- Cost Pool Analysis
- Cost Pool Analysis Details
- Cost Source Validity
- Costing Standard Upload Data Set
- Data Dimensions - Cost Source
- Data Dimensions Dashboard
- Data Dimensions Dashboard - Home
- Financial Analysis
- Financial Analysis - CapEx Transaction
- Financial Analysis - CapEx Trend
- Financial Analysis - OpEx Transaction
- Financial Analysis - OpEx Trend
- Financial Review
- Financial Variance Review
- Help - Allocation Table
- IT Finance - Account Transaction - CapEx Detail
- IT Financials
- TBM Dashboard
- Transaction Details
- Transactions
- Variance Detail
To see details of these reports (including navigation, roles, objectives, and questions answered for each report), please see the Costing Standard User Guide in the Online Help.