Best Practice for Cost Splitting / Allocation across multiple Entities (BUs/Departments) in SPM?

[Alpa82]

Hi Community,

I am seeing a recurring requirement across several projects: the need to distribute/split project costs across multiple entities (e.g., Impacted Business Units, Departments, or legal companies) based on a predefined percentage.

For example: A $100,000 project cost needs to be allocated 60% to  Impacted BU "A" and 40% to BU "B."

Currently, it seems most OOTB (Out-of-the-box) cost plans or expense lines are tied to a single  Entity. This leads to a lot of manual "splitting" of cost plans, which is hard to maintain.
The Project manager must be able to identify on for their project the % amount for each of the entity.

My questions to the experts here:

1. Is there an OOTB feature in SPM that allows for percentage-based cost distribution at the Project or Demand level?

2. How are you handling this today without heavy customization?

3. If you are using a custom solution (e.g., a "Distribution matrix" table), how do you ensure the automated generation of Expense Lines or Cost Plans reflects these percentages correctly?

I’m interested in seeing if this is something on the ServiceNow roadmap or if there is a "prescriptive" way to handle this that I might be missing.

Thank you in advance 

[LucasCondron]

Did you ever find an answer to this question, or find a solution that works for your team?

[Alpa82]

Hello Lucas, unfortunatelly no answer from anyone, I would be especially interested to hear from ServiceNow on what is their suggested approach.
From our experience, custom tables created to define to which entity the cost are to be allocated and in what %. Based on the total sum of monhtly expense lines, the amounts for each entinty are calculated and generated, this can then be exported if needed to other system.

[Alpa82]

Hello @Carina Hatfield , is this something that the SN product team could advise on the best practices?
Thank you

[Vinay3]

Hi @Alpa82 This functionality is not available OOTB from SN SPM. 

One of ServiceNow's partners 'Nicus' has built solutions for these advanced use cases. You can explore their website to learn more.