Are you using Financial Management?

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During my adventures in ServiceNow I bumped into the Financial Management module. Normally we ITSM people take a big leap around it and we focus on process that are more familiar to use like change or incident management. In this blog article I want to show how ServiceNow is able to support some of the underlying processes of Financial Management for IT.

Financial Management:
Each organisation has its own form of Financial Management that is used as a basis for conducting business. IT departments are part of an organisation there for have to apply to the procedures and rules that are put in place by the financial management process of their organisation.

Financial management for IT Services consists of a number of processes. In this Blog the focus is on four of them:
• Budgeting – Process of predicting and controlling the income and expenditure of money within the organisation
• “Cost” Accounting – Process that enables the (IT) organisation to account fully for the way its money is spent
• Charging – Process of billing customers for the services they have used
• Pricing – the process of determining what an organisation will receive in exchange for its products (services)

Regardless of the methods used to execute these processes they all require some sort of data input.

The tool:
Looking at the out-of-the-box functionality present in ServiceNow it’s clear that already a lot is present which can be used to cover the four processes mentioned above.

Budgeting:
ServiceNow enables you to define budgets and set an amount for the defined period. Cost centers also can be linked to budgets to indicate how high the actual cost of the total related expense lines are.

Overview of a budget in ServiceNow
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Overview of cost centers in ServiceNow

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Accounting and Charging:

Expense lines are used to indicate which costs have occurred and for different activities. These can be created manual or via an import. It is also possible to have ServiceNow generate these automatically. Through a user request for a service. The expense line is then linked to the cost center of the requester. The total amount of these expense lines can be used to charge your customer for the services that he has been using.

Overview of a cost center with related expense lines

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Pricing:
On the Service offering that is related to a Business Service you can indicate the price that is charged for using/requesting this services. When a configuration item is created that is linked to this Business Service expense lines can be generated automatically.

Pricing of an service offering
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As this is a first glance on what ServiceNow has to offer within the Financial Management for IT area I’m curious if people are already aware of this functionality and using it. Please let me know what you think of this functionality provided by ServiceNow and how it helps you to control your expenses!

Good luck!
Kind regards,
Olivier Cramer (.img[at].img)

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