Financial Management

The Financial Management Module allows Service Delivery Managers to keep track of actual generated revenue of services delivered (consumption based), and variances between actual and forecasted revenue. This allows operational managers to take actions such as changing resource allocations, consolidate assets, etc. in order to maintain the net margin of the service delivery.

The Financial Management Module integrates with financial systems to provide all relevant calculated information for invoicing, including incentives and penalty calculation; and all relevant consumption data as needed for the price calculation. Additionally, enhanced security is provided to ensure that financial information is only accessible to authorized users. Furthermore, data (actual or forecasted) in the Financial Management Module is used as part of the Business Impact analysis capability of CA Business Service Insight in order to help define priorities in case of service delivery degradations. Some of the specific features include:

Price Model or Formula: The price model comprises items that play a role in the calculation of the total price of the service delivery, and how that calculation is derived. This is typically a combination of fixed pricing, variable pricing (such as consumption-based and quality-based) and correction with credits and/or penalties.
Price List: Details on the unit price for every item in the total price calculation. These unit prices can vary over time (e.g. until 01 June 2005 = 1 Euro; from then on 0.95 Euro) and upon different levels of volume (e.g. up to 1000EA = 1 Euro; from 1001EA = 0.8 Euro).
Forecast: Expected evolution over time of the consumption aspects of the service delivery. CA Business Service Insight supports calculation of future service revenue and cost based upon forecasted consumption levels.
Incentives: The new Incentives functionality and the Price List are used together to calculate bonuses for exceeding the guaranteed service levels or penalties for failing to meet the agreements.
Contract Value: Customized aggregation methods can be defined based upon contract price items, bonuses and penalties to calculate the revenue from the contract.
Complete Integration: Fully supported by the existing CA Business Service Insight capabilities, including Reports, Dashboard and Alerts

This section contains the following topics:

Contract Pricing

Revenue Forecasting