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What is charge back model?

Posted: Thu Apr 28, 2016 12:12 pm
by Subhash Chander
Hi,

What is charge back model in mainframes? Are there are multiple type of charge back models available?
Do we have some details about it from vendors and IBM available to us? Google gives some mix answers, but in connection to mainframes how it works? Can you share thoughts please.

Re: What is charge back model?

Posted: Thu Apr 28, 2016 12:54 pm
by enrico-sorichetti
What is charge back model in mainframes?
the same thing as in any other environment

the users of IT services are billed

Re: What is charge back model?

Posted: Thu Apr 28, 2016 5:36 pm
by Robert Sample
There is NO standard chargeback model on mainframes -- each site designs and implements their own.  As such, chargeback models vary widely.  Many (but not all) will charge for disk usage, tape usage, and CPU usage -- some also charge for storage usage but others don't.  They can be simple or extremely complicated.

Re: What is charge back model?

Posted: Tue May 03, 2016 11:34 am
by Subhash Chander
Thanks. I understand different sites won't allow to understand their charge back models but are there some example of these charge back models on IBM site?

Re: What is charge back model?

Posted: Tue May 03, 2016 11:34 am
by Subhash Chander
Or on the site of any other mainframe manufacturer?

Re: What is charge back model?

Posted: Tue May 03, 2016 7:04 pm
by Robert Sample
I don't really think you understand yet -- charge back is an accounting fiction that some companies use and other companies don't.  Vendors don't really care how the company accounts for the use of their system as long as the company pays for the system -- either up front or in annual payments or monthly payments or whatever.  Googling chargeback model allowed me to find this 9-year-old IBM Powerpoint presentation that might help you:  ftp://public.dhe.ibm.com/software/os/sy ... dology.pdf

But in general hardware vendors (mainframe or otherwise) are not very involved in charge back.  Perhaps you should go find an accounting forum and ask on that?

Re: What is charge back model?

Posted: Wed May 04, 2016 4:13 pm
by Subhash Chander
Thanks for your answer Robert but the ink did not open for me. If you can attach the file or share the link again, may be it will work for me.

Re: What is charge back model?

Posted: Wed May 04, 2016 5:05 pm
by enrico-sorichetti
it was a bit slow but it worked for me.
ftp://public.dhe.ibm.com/software/os/sy ... dology.pdf

Re: What is charge back model?

Posted: Wed May 04, 2016 6:47 pm
by Robert Sample
The link is a 6-meg Powerpoint presentation.  I think what you're wanting is on one slide:
[font=sans-serif]Costing methods supported[/font]
[font=sans-serif]As described by Professor Brant Allen of the Colgat[/font][font=sans-serif]e Darden School of[/font] [font=sans-serif]Business at the University of Virginia[/font][font=sans-serif].[/font]
[font=sans-serif][/font]
[font=sans-serif]No Charge Back[/font]
[font=sans-serif]►[/font] [font=sans-serif]IT Department is Overhead[/font]
[font=sans-serif][/font]
[font=sans-serif]Overhead Allocation[/font]
[font=sans-serif]►[/font] [font=sans-serif]Based on head count, assets, revenue, floor space,[/font][font=sans-serif]and so forth (not usage)[/font]
[font=sans-serif][/font]
[font=sans-serif]Memo Record Billing[/font]
[font=sans-serif]►[/font] [font=sans-serif]We don't do this, but if we did . . .[/font]
[font=sans-serif][/font]
[font=sans-serif]Classic Chargeback[/font]
[font=sans-serif]►[/font] [font=sans-serif]End of Year Budget Charge . . . Zero Cost[/font]
[font=sans-serif][/font]
[font=sans-serif]Break Even (Year End Adjustment)[/font]
[font=sans-serif]►[/font] [font=sans-serif]Same as Classic except budgets are charged monthly[/font][font=sans-serif]. . . Zero Cost[/font]
[font=sans-serif][/font]
[font=sans-serif]Budgeted Rates[/font]
[font=sans-serif]►[/font] [font=sans-serif]See Rates for Year, Quarter, etc.[/font]
[font=sans-serif][/font]
[font=sans-serif]Standard Rates and Negotiated Prices[/font]
[font=sans-serif]►[/font] [font=sans-serif]Similar to other inter-divisional accounting practi[/font][font=sans-serif]ces. Cost and price are two different things.[/font] [font=sans-serif]The IT Department is run like a business[/font]
[font=sans-serif][/font]
[font=sans-serif]Functional Pricing[/font]
[font=sans-serif]►[/font] [font=sans-serif]Instead of CPU time, or disk usage, users are charg[/font][font=sans-serif]ed for functional items such as orders[/font] [font=sans-serif]entered, claims processed, and checks written[/font]

Re: What is charge back model?

Posted: Thu May 05, 2016 10:39 am
by Subhash Chander
Thanks Robert and enrico.

Re: What is charge back model?

Posted: Thu May 05, 2016 10:47 am
by Subhash Chander
I keep ongetting this:
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This looks like a problem with my office firewall.