SolutionsFund & OptimizeCost Allocation

Foundation · included with every Fund & Optimize module

Cost numbers finance will sign off on and the business will accept.

“Where does the money actually go — and can I trust the number?”

Cost Allocation is the foundation of Fund & Optimize and is included with every module. Technology, people, cloud and AI costs come in once from your accounting system and are assigned to the applications, business units and capabilities that use them. Every report reads from the same numbers — so the IT bill each business unit receives, the cost of each capability and the board pack all agree, and any dollar can be traced back to where it came from.

Rooms you open

  • See the Spend
  • Trust the Numbers
  • Bill the Business
  • Own the Cost
  • Optimize IT

Methods supported

TBMFinOpsFOCUS

Part of Fund & Optimize · How do we plan, allocate and optimize resources?

The pressure

Internal charges should not be an argument.

The cost logic lives in a tool nobody outside IT finance can read. A business unit gets a bill it cannot question, so it disputes it. Costs that cannot be assigned are spread around or dropped to make the totals look tidy, and every audit starts from scratch.

What it looks like today

  • Manual accounting entries for internal charges every month-end
  • Disputed IT charges that never get resolved
  • Overhead hidden where no business unit can see it
  • Every CFO sign-off triggers another round of checking

What changes

What changes.

Cost logic nobody can explain

Any dollar traced back to the transaction it came from

Unassigned costs quietly spread around

Unassigned costs shown and labeled, with what is missing

An IT bill the business disputes

An itemized IT bill, explainable line by line

The report the business actually reads

An IT bill a business unit leader can question — line by line.

Itemized by service, application and vendor, with quantity and rate, and matching the same numbers as every other view. Change how costs are split and the total still adds up. When funding comes from the business units, this is the bill that turns the conversation from trust to usage.

Where other tools stop

Most cost tools produce a bill only finance can read. The business gets a PDF. Here the line item, the rate and the original dollar are one click apart.

The rooms

The rooms inside Cost Allocation.

Each room answers one question a leader actually asks, with the view that answers it and the measures that say whether it is working.

A room is a ready-made view that answers one leadership question, built on the same shared data as every other room.

Room 01

See the Spend

“What do we spend on technology, and where does it go?”

The total, broken down by category, by business unit and by keep-the-lights-on, growth or transformation — from the same numbers every other view uses.

How you know it is working

  • Time to a board-ready total people trust, down
  • Share of spend with a standard category and a named owner, up

Room 02

Trust the Numbers

“Can I believe the numbers, and can you explain any dollar?”

Two checks: does everything still add up, and can any dollar be traced back to the accounting entry it came from.

How you know it is working

  • Unassigned cost, to zero
  • Share of assigned cost traceable to an original transaction, up

Room 03

Bill the Business

“What does each business unit use, and will its leader accept the bill?”

An itemized IT bill by service, application and vendor, matching the same numbers as everything else.

How you know it is working

  • Disputed internal IT charges, down
  • Manual month-end accounting entries, down

Room 04

Own the Cost

“What does this capability actually cost me, all in?”

The full cost of a business capability — technology, people and AI together, with nothing counted twice.

How you know it is working

  • Costs counted twice inside a capability’s total, to zero
  • Extra rounds of checking at CFO sign-off, down

Room 05

Optimize IT

“Where are we inefficient, and what is worth acting on?”

Unit costs against target, spend against industry ranges, and the actual mix of keep-the-lights-on, growth and transformation against the mix you planned.

How you know it is working

  • Gap between unit cost and target, down
  • Gap between actual and planned spending mix, down

Who it is for

Who opens it, and what they ask.

CFO

“Does the total match our books, and can you explain any dollar in it?

CIO

“What does each capability cost to run, all in?

IT finance

“How do we stop the manual entries at month-end?

Business unit leader

“What am I paying for, and why this much?

What it replaces

Retire the workarounds — on your schedule.

  • Standalone cost allocation tools, retired on your schedule
  • Internal-charge spreadsheets and manual accounting entries
  • Quarterly cost-transparency decks

How it is licensed

Cost Allocation is the foundation of Fund & Optimize and is included with every module in it.

Start in IT, one function or a division. Cost Allocation is included automatically with every module.

See pricing

Methods and frameworks

Runs the methods you already use.

Dotwork does not ask you to adopt a new method. The frameworks your teams run become views over the same model.

TBM

Technology Business Management: a standard way to categorize IT spend and who uses it.

FinOps

The practice of making teams accountable for what they spend on cloud.

FOCUS

The industry-standard format for cloud and software billing data.

The model underneath

Every module makes the next one smarter.

Steer, Fund & Optimize and Govern & Deliver all read and write the same Enterprise Operating Model. The first module you license builds the model. Every module after it adds context instead of another silo — and Dotwork AI reads all of it, stopping where the decision is yours.

See the Enterprise Operating Model

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