Using Pricebooks to allocate costs to business units or customers

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Pricebook are collections of Accounts that have Pricing Rules applied to either internally assign costs or apply markup/ margin to resource usage.

Pricing Rules Types

Pricing Rules mirror the way you charge for or assigns Cloud costs. Pricing rules can be configured to reflect the pricing/ costing models you apply within your organization.

 

Internal Rule: If this pricing rule is meant to only apply chargebacks to Internal business units or services then select internal, use this to create Chargebacks.

External Rule: If this pricing rule is meant to only apply a margin on top of your customers billing costs select External, use this to apply margin to resources you manage. 

Custom Rule: If you require a rule that is meant to chargeback an amount and add a margin, as in the case of an IT department as a service, then select the custom type.

 

Price Rule Types: Flat Rate, Usage Based, and Exclusion Markups

Along with the different types of rules you can also apply different types of markups in your Pricebook. This allows for you to customize how you want to charge your customers.

Flat Rate Rule: Applies a fixed dollar or percentage on top of all costs incurred by the Accounts linked to that Pricebook.

Usage Based Rule:  Adds a different margin depending on the usage of the linked Accounts. Within this rule it would be possible to create different margins for accounts that have some variability in how they use a specific product.

Example: set a usage based margin on Amazon Simple Storage Service that charges 15% on the first $100, 20% on accounts that incurred charges between $100 and $1000, and 25% on accounts that had over $1,000 dollars in expenditure on Amazon Simple Storage Service.

Exclusion Rule: Markups that do not pass the cost of the product or resource to the end customer. This becomes very handy when you are charging customers only on specific products and excluding the costs for others.

Add a Markup to apply margin to an account you manage

Step 1: Select how you want to charge your customers

-       Choose between the options of flat rate, usage based, and exclusion (explained above)

Step 2: Apply the Pricing Rule

-       Within the apply pricing rule screen select the product that the pricing rule will be targeting. If you want to apply the rule to a specific resource click ‘Resources’ in the filter box in the top right of the list view.

Step 3: Configure the margin

-       In the resulting panel fill in the data to reflect the attributes you want your pricing rule to have

 

Create a Chargeback to internally assign the cost of a resource

Step 1: Apply the Pricing Rule

-       Within the apply pricing rule screen select the product that the pricing rule will be targeting. If you want to apply the rule to a specific resource click ‘Resources’ in the filter box in the top right of the list view.

Step 2: Assign the Chargeback

-       After moving to the next panel, select a cost center that you would like the costs allocated too based for the product or resource selected in the previous step.

-       If you do not see any cost centers you will have to add some cost centers from the cost center page

 

Pricebook settings

Actions that you can within a Pricebook

  • Editing the Pricebook's properties,
  • Duplicate the Pricebook
  • Set the Pricebook as the default Pricebook,
  • Delete the Pricebook. 

 

 

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