Tom Foegen
Retired FinOps Practitioner at Formerly Mayo Clinic
by Tom Foegen, Mayo Clinic
To date, Mayo Clinic is allocating all meter charges to projects. Charges are broken down a few ways:
These costs are applied at a detailed row level within the billing export data in order to be able to rollup up the costs multiple ways. The customer only sees the cost after the costs are allocated. To date, we have not been challenged from anyone on those costs.
Currently we apply these costs at the end of the month but since customers are now starting to receive regular reports (daily, weekly and monthly) we are going to start to apply the overhead costs on a daily basis as charges come in. The challenge is that the projects need to be defined upfront in order to determine what service category they apply too.
The alternative discussed recently is to use a standard percentage to apply the categories and then true up these costs on a regular basis, maybe quarterly.