Global Support Chargeback Model for a Multinational Oil Company
The Global Support departments of an large oil company; IT, Housing, HR and Telecom made their own Revenue and Expense Budget. The expenses were also booked as cost in cost centers that utilize the services of each support department.
This process was not integrated and therefore there was always a gap between expected internal revenues and internal cost as budgeted by each cost center. Furthermore it was impossible to analyze any mismatch.
An integrated planning model was built, in which the support departments could plan their costs and revenues and local cost centers could plan their needs, such as number of PC’s , lines, m2, etc.
Based on a complex chargeback mechanism the internal costs were automatically calculated and presented to the internal customers (local cost centers). After agreement the costs and revenues were translated to specific general ledger accounts and cost centers and loaded into the SAP financial system.
The introduction of this integrated chargeback model made it superfluous to submit the data more than once. Although some allocated costs were still subject to discussion, both parties were talking about the same figure.
