Chargebacks › How Chargebacks Work

How Chargebacks Work

Chargebacks and credits are driven by rules and processed through WIP transactions. These rules are used during transaction processing to apply charges or credits appropriately to designated departments. Department managers can view their charges and credits using the following tools:

• Department invoices to view and approve charges.
• Department recovery statements to viewed credits. Available for departments that manage services.

The following chargeback rules are supported:

• Investment-specific Debit Rules. A set of investment-specific debit rules that determines how to debit departments for the cost of investments or services that were delivered to them during a specified period of time. Allocations may not always equal 100 percent if some costs are charged to overhead. Investment or service managers set up debit rules.
• Standard Debit Rules. A standard set of debit rules that can be used globally within an entity to charge departments for investment costs.

  Note: Contact your finance manager or see the Administration Guide for more information.

• Credit Rules. A set of rules that determines which departments are credited for the cost investments or services delivered during a specified period of time. Allocations on credit rules must equal 100 percent of the debited costs.

  Note: Contact your finance manager or see the Administration Guide for more information.

• Overhead Rules. A standard set of rules that determines how to charge remaining costs for a specified period of time.

  Note: Contact your finance manager or see the Administration Guide for more information.

When setting up debit rules, you as the investment or service manager can base charges on standard rules or investment-specific rules.

To work with chargeback rules for your investments, you need certain access rights. See the following guides for a list of access rights needed to manage chargeback rules for a specific investment type:

Note: See the Project Management User Guide for more information.

Note: See the IT Service Management User Guide for more information.

Note: See the Portfolio Management User Guide for more information.

More information:

Department Invoices

Department Recovered Costs

Investment-specific Debit Rules

Set Chargeback Options