Telecom Cost Allocation – GL Code Allocation – Chargebacks
There are many terms that can be assigned to cost allocation. Basically it means is slicing the pie – assigning departments, locations, or employees to the individuals costs associated with the telecom environment. Cost allocation is one of the key ways to keep track of your telecom expenses.
We use Clearview, our web-based telecom management software, to assign specific general ledger (GL) codes. This assignment enables advanced and detailed reporting of costs by department, location, employee and more. This will help your organization better understand where specific charges are originating.
Clearview assists in this task with providing very granular telecom cost allocation. The tool can store accounting codes and then associate them with individual types of charges incurred by individual inventory items. For example, the voice portion of a cell phone’s charges could be set to allocate to one code, and the data portion to another. Or, the voice portion could be split by percentage over 5 codes.
Once the invoice data is entered, it can be set to interface with your internal AP system so that the charges flow to the codes that are already setup.
Benefits for Finance, IT and Telecom
Managers want to know who pays for telecom services, and how much they pay, so they can make intelligent decisions using that data.
IT and finance both want deeper visibility into what is driving costs, and granular insights into the environment can help minimize the impact to the bottom line.