IT Chargeback model
IN THIS TOPIC:
- Chargeback Accounting for Office 365
- Example Chargeback Reports using 4ward365
Direct Chargeback for Licenses Consumed
The simplest model to implement chargeback for Office 365 is to assign billing codes to each user account and then cross-match the licenses utilized by those accounts. Then you just have to create an editable pricing table for the different types of licenses, and you’re in business. But things are never quite that simple. The admin center portal has no easy way to track licenses assigned to users, and there are absolutely no pricing tables for licenses included in the admin center to make your life easier. So, that leaves you with spreadsheets and Powershell export scripts to setup your own billing system. It can be done, but wow is it ever a headache to process these on a monthly basis.
Another common chargeback model is to add in the associated costs for on-premises support and administration of Office 365. These commonly include a portion of the helpdesk costs and IT administrators who help manage the Office 365 environment. To include those additional costs, it is a fairly straightforward exercise. First, identify the FTE cost for the number of resources, and then divide that by 12 months to distribute it for monthly chargeback. Then divide that monthly cost by the total number of users in the organization. This provides a good estimate for the individual support cost per employee. Take that small number and add it to the current cost for each of the Office 365 license plans (E1, E3, etc.) in 4ward365 so that it is distributed evenly to all users. Now when you run the monthly billing reports it will include the chargeback for both the Office 365 company fees along with the internal IT support costs.
Summary of Chargeback Models
The admin center portal was never designed for chargeback accounting purposes. It would take an enormous development effort to create a billing system for Office 365 through the use of Powershell scripts and custom spreadsheets, not to mention the countless hours to perform the processing cycles each month. To help customers easily setup a chargeback process, the 4ward365 solution has all the built-in functions necessary.