How to Build a Service Hierarchy › Examine the Financial Rollup for a Service

Examine the Financial Rollup for a Service

You can view financial data in a hierarchical list that shows your child investments, services, and ideas. All the child costs and benefits are rolled up to the parent service and appear on the parent service line item.

You can track the costs incurred to build, maintain, and support your service. You can also track the allocation percentages, planned costs, actual costs, remaining costs, planned benefits, planned ROI, and planned NPV. You can modify the service by adding or removing child investments.

Follow these steps:

1. Open a service.
2. Open the Hierarchy menu, and click Financial Rollup.
3. Examine the parent and child services in the financial rollup including values for the following fields:

   Planned Cost

   The planned costs for the investment including the costs rolled up from any child investments based on their allocation percentages.

   Actual Cost

   The costs incurred from billing and invoices. If the service is unapproved, the actual costs are also rolled up from the child investment or service. The costs are rolled up after the investment allocation percentage is factored in. That is, the service status is something other than Approved.

   Remaining Cost

   The difference between the planned costs and the actual costs.

   Planned ROI

   The planned return on the investment and its child investments.

   Planned NPV

   The net present value on the investment and its child investments.

   Planned Benefit

   The sum of the planned benefit from the investment, service, or idea detailed budget. The planned benefit represents the anticipated future revenues for the investment.

   TCO

   The total cost of ownership is the aggregated amount of costs derived from running or operating a service. Operating a service involves managing all supporting investments such as projects, applications, and ideas. The TCO metric tracks costs and shared allocations. Use TCO to manage a service budget and compare aggregated costs accrued from other investment types.

4. To determine TCO, add one or more child investments to a service. View the aggregated cost and labor totals from the hierarchical bill of investments.
5. To filter the list, select an option from the Status field.

   Note: By default, the service financial and effort rollups display a list of approved and unapproved child investments.

6. To adjust allocations to align with business goals, you can also add or remove child investments or services.