Objective: The objective of ITIL Financial Management for IT Services is to manipulate the carrier issuer’s budgeting, accounting and charging requirements.
Part of: Service Strategy
Process Owner: Financial Manager
Essentially, the sports and technique goals of Financial Management in ITIL V3 (2007) and the ‘Financial Management for IT Services’ technique according to ITIL 2011 have not modified.
The interfaces between Financial Management and the other ITIL tactics were adjusted to reflect the ITIL 2011 process structure. The technique evaluation of ITIL Financial Management (.JPG) indicates the important thing statistics flows (see fig. 1).
ITIL 4 refers to ‘Service Financial Management’ as a popular control practice.
These are the ITIL Financial Management sub-tactics and their technique goals:
Financial Management Support
- Process Objective: To define the essential structures for the control of economic making plans data and prices, as well as for the allocation of expenses to offerings.
- Process Objective: To decide the specified financial sources over the following making plans duration (“IT Budget”), and to allocate those resources for max blessings.
Financial Analysis and Reporting
- Process Objective: To examine the shape of service provisioning value and the profitability of services. The resulting monetary evaluation allows Service Portfolio Management to make informed decisions whilst identifying approximately changes to the Service Portfolio.
- Process Objective: To trouble invoices for the provision of services and transmission of the invoice to the consumer.
The following ITIL terms and acronyms (records objects) are utilized in Financial Management for IT Services to represent process outputs and inputs:
- A request for a price range, commonly issued from any of the Service Management approaches at the same time when compiling a Request for Change. An approved Budget Request method that the specified financial resources for imposing a Change are accepted by using Financial Management.
- A budget allotted via the Financial Manager to put into effect a Change. Budget Allocations are issued in reaction to Budget Requests originating from any Service Management process together with Requests for Change.
Cost Data for Service Provisioning
- The cost for supplying a service, calculated via Financial Management as a basis for calculating the price a consumer is expected to pay for a carrier.
- The Financial Analysis is an important input to the Portfolio Management system. It consists of records at the charges for supplying offerings and presents perception into the profitability of offerings and customers (see additionally: ITIL Checklist Financial Analysis).
Financial Data Categories
- Various categories are used to shape economic data, as a way to benefit perception into the underlying charges of carrier provisioning and carrier profitability.
Indirect Cost Allocation Table
- A desk used to allocate oblique prices which are shared among multiple services, defining the guidelines how the ones prices are unfold among the offerings.
- The bill for the delivery of a service or product.
- The IT Budget is an annual economic plan that provides a forecast of predicted prices and allocates financial resources to the diverse carrier control methods and organizational gadgets inside the IT organization Responsibilities
Financial Manager – Process Owner
- The Financial Manager is liable for coping with an IT service issuer’s budgeting, accounting and charging requirements.
 A: Accountable consistent with the RACI Model: Those who are in the long run answerable for the best and thorough of completion of the ITIL Financial Management method.
 R: Responsible consistent with the RACI Model: Those who do the work to achieve a project within Financial Management for IT Services.
By: Stefan Kempter , IT Process Maps.