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Asset Library / FinOps Use Cases / Allocate multi-currency charges per application
Finance needs to allocate costs and perform chargeback for charges for all applications that come from different geographic locations and are in different currencies.
SELECT Tags["ApplicationId"], ProviderName, BillingAccountId, BillingAccountName, BillingCurrency, SUM(BilledCost) AS TotalBilledCost FROM focus_data_table WHERE BillingPeriodStart >= ? AND BillingPeriodEnd < ? GROUP BY Tags["ApplicationId"], ProviderName, BillingAccountId, BillingAccountName, BillingCurrency
Method of apportioning shared effective costs based on usage or spend proportional amount.
Total apportionment of Shared Costs / Total shared costs
Example: ACME Global Limited Shared effective cost for the month of July was $200,000 on cloud monitoring tools, security tools, cloud costs management tools, CSP (Cloud Service Provider) Premium Support Fees. ACME Global Cloud bill for July came to $1,200,000, broken down per Cost center/Product/Department as:
Method for apportionment Shared effective cost in cloud spend:
($37,500 +$37,500+$50,000 +$75,000) / $200,000 x 100 = 100%
Data Sources:
Related Capabilities
This measurement refers to expenses that cannot be directly attributed to a specific project, team, or department within an organization.
An organization should select a cost model to distribute shared costs. Example shared cost models include, shared costs are evenly chargedback across all cloud consumers, proportionally charged back based on cloud consumption, or charged back based on another metric used to determine allocation. The goal is to reduce the percent of shared costs not being chargedback overtime.
Percentage of Unallocated Shared CSP Effective Cloud Cost = (Unallocated Shared CSP Effective Cloud Cost/Total CSP Effective Cloud Cost)
Measure of Success: Decreasing % of unallocated shared CSP effective cloud cost over time
Data Sources:
Related Capabilities
This KPI measures the amount of compliance for cloud cost tagging, and requires an established organizational tagging policy.
The sophistication of determining what acceptable tag criteria are and the stringency of the KPI should evolve with the organization’s FinOps maturity.
(Total Effective Costs Associated with Tagging Policy Compliant CSP Cloud Resources During a Period of Time / Total CSP Cloud Effective Costs During a Period of Time) x 100
Data Sources:
Calculate percentage of untagged cloud resources using an established organizational tagging policy.
The sophistication of determining what is acceptable tag criteria and the stringency of the KPI should evolve with the organization’s FinOps maturity.
(Total Effective Costs Associated with Untagged CSP Cloud Resources During a Period of Time / Total CSP Effective Cost During a Period of Time) x 100
Note: Not all CSP Cloud Resources can be tagged.
Data Sources:
Unallocated cost refers to expenses incurred for resources or services that are not directly attributed to specific projects, departments, or applications.
These costs can arise due to shared resources, lack of proper cost allocation mechanisms, or simply inefficiencies in resource management. Unallocated costs can contribute to cloud wastage and make it difficult to accurately track and manage expenses. Identifying unallocated cost and reducing them by allocating, improves the cost allocation
(Total Effective Costs Associated w/Unallocated CSP Cloud Resources During a Period of Time / Total CSP Cloud Costs During a Period of Time)
Data Sources: CSP Billing Data
Related Capabilities
This measures total cloud spend in the cloud management tool vs. amount charged in General Ledger (Finance application).
(Total CSP Cloud Spend recorded as a Journal in the General Ledger) / (Total CSP* cloud spend for the month)
Example: ACME Global Limited monthly cloud spend for July is $1,000,000. ACME Global Limited Finance application records the total cloud spend to the General Ledger as $1,000,000 Income Statement Recharge Rate = 100% Note: * CSP = Cloud Service Provider
Data Sources:
Total cloud spend in the cloud management tool per Cost Center vs. amount charged in General Ledger (Finance application) per Cost center.
(Total CSP* Cloud Spend per Cost Center recorded as a Journal in the General Ledger) / (Total CSP* cloud spend per Cost center for the month)
Example: ACME Global Limited monthly cloud spend for July is $1,000,000. The total chargeback amount per various cost center was:
Finance = $200,000 ACME Global Limited Finance application records the total cloud spend to the General Ledger for Finance as $180,000 Income Statement Recharge Rate per Cost center = 90% Note: * CSP = Cloud Service Provider
Data Sources:
Related Capabilities
Method of apportioning shared costs based on Fixed Percentage.
Total apportionment of shared Effective Costs / Total shared Effective costs
Example: ACME Global Limited shared effective cost for the month of July was $200,000 on cloud monitoring tools, security tools, cloud costs management tools, CSP (Cloud Service Provider) Premium Support Fees. ACME Global Limited has 4 Cost centers/Product/Department, so the fixed percentage is 25%.
($50,000 +$50,000+$50,000 +$50,000) / $200,000 x 100 = 100%
Data Sources:
Related Capabilities
Finance
Allocation 
Invoicing & Chargeback