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R12.6 Change - Expense Type split into two fields 

Fri January 11, 2019 12:52 PM

Applies to: Apptio TBM Studio and applications 12.6+ (Learn more)

 

Background

The standard Cost Transparency cost model includes six specific models based on the different types of financial information:

  • Cost (actual OpEx and depreciation)
  • Budget (OpEx and depreciation)
  • Forecast (OpEx and depreciation)
  • CapEx 
  • CapEx Budget
  • Forecast Budget

 

The drivers into each of these metrics had been based on two primary fields:  "Expense Type" and "Fixed Variable". The following values were typically used for Expense Type and were used to determine into which financial model (above) to flow the financial data. Expense Type included:

  • OpEx - flows into Cost model (including both a fixed and variable driver)
  • OpEx Budget - flows into the Budget model
  • OpEx Forecast - flows into the Forecast model
  • CapEx - flows into CapEx model (including both a fixed and variable driver)
  • CapEx Budget - flows into the CapEx Budget model
  • CapEx Forecast - flows into the CapEx Forecast model

 

The formula for each of the drivers into these models was based on a complex if/then statement. For example, the formula for the OpEx Fixed driver into the Cost model was:
=If(Cost Source Master Data.Expense Type="OpEx" AND Cost Source Master Data.Fixed Variable="Fixed",Cost Source Master Data.Amount,0)

 

Example: 

 

New Feature

With the introduction of Apptio's applied machine learning capabilities to match account names to the ATUM standard cost pools, the Expense Type field was split into two separate fields. This was necessary for the separation and proper functioning of the new automation. The following changes were made to the Cost Transparency Master Datasets:

  • Expense Type - changed definition 
    • Expected values:  OpEx, CapEx
  • Plan Type - new column
    • Expected values: Actuals, Budget, Forecast
  • Cost Source Model Driver - new column
    • Formula =UPPER(Expense Type && Plan Type && Fixed Variable)

 

With these new columns, the drivers into the six separate financial models will be changed to a simpler formula. For example, the new formula for the OpEx Fixed driver into the Cost model will be: 
=If(Cost Source Master Data.Cost Source Model Driver="OPEX - ACTUALS - VARIABLE", Cost Source Master Data.Amount, 0)

 

Impact to existing customers during upgrade

Existing customers who upgrade their Cost Transparency application to the R12.6 template version will continue to operate without interruption from the splitting of Expense Type.

  • The upgrade will NOT change the current formulas or the current data in the Expense Type column, nor will it change the formula used in the model drivers.
  • Existing customers do NOT need to move to the new split expense type feature.

The primary reason to use the split Expense Type will to take advantage of the new Cost Pool mapping machine learning feature, which is only available in Early Access (EA) for Release 12.6. 

 

Using the new split Expense Type

All new customers will automatically be configured with the Expense Type, Plan Type, and Cost Source Model Driver fields in the Cost Source Master Dataset, and should map their data to the correct Expense Type and Plan Type. The Cost Source Model Driver field has the correct formula and is used in the model drivers for the six different financial models. 

 

Existing customers who change to the new Expense Type split should follow these instructions:

  1. Cost Source Master Dataset appended files:
    • For all raw datasets or transforms that are identifying the Expense Type, these need to be modified to limit the values in the Expense Type to just "OpEx" or "CapEx".
    • Similarly, the new Plan Type field should be mapped or identified with the appropriate values:  "Actuals", "Budget" or "Forecast".
    • Example: 
  2. Model drivers must be changed to the following formulas:
    • Cost model
      • =If(Cost Source Master Data.Cost Source Model Driver="OPEX - ACTUALS - FIXED",Cost Source Master Data. Amount, 0)
      • =If(Cost Source Master Data.Cost Source Model Driver="OPEX - ACTUALS - VARIABLE",Cost Source Master Data. Amount, 0)
    • Budget model
      • =If(Cost Source Master Data.Cost Source Model Driver="OPEX - BUDGET - FIXED", Cost Source Master Data.Amount, 0)
      • =If(Cost Source Master Data.Cost Source Model Driver="OPEX - BUDGET - VARIABLE", Cost Source Master Data. Amount, 0)
    • Forecast model
      • =If(Cost Source Master Data.Cost Source Model Driver="OPEX - FORECAST - FIXED", Cost Source Master Data.Amount, 0)
      • =If(Cost Source Master Data.Cost Source Model Driver="OPEX - FORECAST - VARIABLE", Cost Source Master Data.Amount, 0)
    • CapEx model
      • =If(Cost Source Master Data.Cost Source Model Driver="CAPEX - ACTUALS - FIXED", Cost Source Master Data.Amount, 0)
      • =If(Cost Source Master Data.Cost Source Model Driver="CAPEX - ACTUALS - VARIABLE", Cost Source Master Data.Amount, 0)
    • CapEx Budget model
      • =If(Cost Source Master Data.Cost Source Model Driver="CAPEX - BUDGET - FIXED", Cost Source Master Data.Amount, 0)
      • =If(Cost Source Master Data.Cost Source Model Driver="CAPEX - BUDGET - VARIABLE", Cost Source Master Data.Amount, 0)
    • CapEx Forecast model
      • =If(Cost Source Master Data.Cost Source Model Driver="CAPEX - FORECAST - FIXED", Cost Source Master Data.Amount, 0)
      • =If(Cost Source Master Data.Cost Source Model Driver="CAPEX - FORECAST - VARIABLE",Cost Source Master Data.Amount, 0)
    • Example:



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