Tiered-based pricing enables IT to charge back to business units based upon levels of service. A tiered structure can be constructed associating various rates to level ranges. This strategy can be implemented in Accounting Component by constructing a tiered type service group to contain these ranges and corresponding rates, and defining services to draw their costing information from them based upon a passed value. You can use this value to look up and select the appropriate tiers.
Consider a tiered service group that contains two columns. In the first column, various ranges can be defined, such as numeric values 1-100, 101-1000, etc. In the second column, associated rates can be defined. You can configure several service group elements to use this tiered service group to determine their cost.
For example, an application service group element can be created to use this tiered service group by selecting Tiered-Based as its Pricing Structure. During the cost calculation for this element, the metric value can be used to select the matching tier(s) and use the corresponding rates. The unit specification at that rate can be derived in a number of ways, such a predefined fixed quantity or the metric value itself. Similarly, agreement service group elements can employ tiered service groups to attribute a cost based on the number of violations.
Depending upon the arrangement, employing a tiered-based structure can be used to enforce equitability and enable business units to make decisions that directly impact their cost.
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