We are revisiting our capex model and I need guidance on best practice and recommendation for configuration and allocation as a starting point.
I'm looking at the CapEx model too as these costs are currently getting stuck as our Cost model is greatly different to the CapEx one - any information on this will be greatly received
Hi Shannon, I'm searching for some resources for you. I'm also hoping someone may get to you before I finish the class I'm about to teach but I'll pick up the search later today if you haven't received a reply yet!
Shannon Harrod - Does your CapEx model mirror your Cost model i.e. in structure and rules?
Not entirely and gets a bit tricky as these costs come through one cost center vs the individual IT owner's cost centers which is how our cost model is based. Furthermore, the capex model we have was built without my involvement and now I'm tasked to revamp the model, hence my need for some reference information on recommendations or best practices for the model. I have a lot of information around the cost model ie. required/recommended fields, master data sets with keys, etc. but I can't seem to find anything specifically on capex model. Any help would be greatly appreciated
Ha, you have a sister in misery there Not being asked to revamp it, but wasn't involved in the build-out really because it was more of our Finance side driving it. In looking at it, tho, it appears to be the same objects/allocation lines - just has different backing data where we're not using depreciation, but capital instead. I know I'm not much help here, but you've definitely come to the right place! Adding a few folks to get some additional insights: Debbie Hagen Jenny Goodwin Justin Zack
All of our models apart from the Cost model is very simplistic and seems to be following suit re: keys as the cost one but how the data is flowing and how the models were created don't align i.e. we have Cost Source going to Vendors, Labor or Projects and then Projects straight to Apps, there's nothing going via Towers and so now CapEx spend isn't appearing on our reports.
Can't wait for the Apptio U ladies to bring us some divine training videos or instructions as I'm pretty sure a remodel for all non-cost models is on the horizon!!
Christopher Davidson do you have any insight you can share here Chris?
The out-of-the box CapEx model more or less mirrors the Cost model, but I rarely see the out-of-the-box CapEx model used as-is. More often it has been modified to fit organization-specific needs, influenced by (1) how finance team wants to identify and track capital expenditures, and (2) what data happens to be available to support CapEx allocation strategies.
Two quick CapEx model examples (from reference projects):
Chris, do you see any customers including towers with the non-cost models?
Yes, I see CapEx value flowing to IT Resource Towers (ITRT) object in some CapEx models.
But at the moment I don't see anyone reporting CapEx at the ITRT level.
If anyone is, please add a comment to this thread.
Thanks Chris. Do you know if you need to have the Planning Module to use the Projects object?
In your Cost model, you can create a from-scratch Projects object if needed.
Or instead consider installing the out-of-the-box CTF - Projects component, licensed for use in any Cost Transparency Foundation project. Details here.
Ours does on the modeling surface - that one and the Budget one - data feeding it is just different in some cases.
Jenny Franklin how are you mapping the budget to towers to allow it to flow? - Searching for inspiration as we don't have 1-2-1 mappings between a budget line and tower!
I wasn't involved in the build-out of that one - more of a Finance specific engagement - but looks like they used the same method of either using project number mapping file to send the costs up (or cost center mapping file when no project number existed). Mostly keys used, but saw where they utilized some Use Map Tables to make it work for a few allocation lines.
Thanks Jenny, I was thinking Project code too and then anything outside of that we might have to use some generic mapping
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