New Cost Plan

MakhanlalM
Tera Contributor

3 weeks ago

I have a requirement in ServiceNow PPM/SPM Financial Management, and I would appreciate some guidance on the configuration.

Currently, in Demand and Project, we have the standard cost types:

  • capital_outlay (CapEx)

  • operational_outlay (OpEx)

  • other_cost (New field requirement)

These values roll up to Total Cost.

Requirement

We need to introduce a new cost category called "Other Cost", which may include multiple additional cost types. This new category should also contribute to the Total Cost calculation.

Current Situation

  • When creating a Cost Plan, we currently select a Cost Type (CapEx or OpEx).

  • Each Cost Type is associated with an Expense Type (either CapEx or OpEx).

  • We have already created:

    • A new Cost Type called  ="Other Cost"

    • A new Expense Type    = "other cost"

  1. How can we configure  so that "Other Cost" rolls up into the Total Cost field for Demand and Project?

    • What configurations or tables should be considered for this roll-up?

  2. How can this new cost category be configured at the Portfolio level?

    • We want to ensure that it is also considered when allocating budgets in the Financial Workspace tab.

  3. Is it possible to create a completely new Expense Type (other than CapEx and OpEx)?

    • If yes, how can it be mapped and rolled up correctly up to the Portfolio level?

Any suggestions on the correct configuration approach or best practices would be greatly appreciated.

Thank you in advance.

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Kieran Anson
Kilo Patron

3 weeks ago

Hi,

This would be a high risk customisation as it would require customising a number of business rules, and script includes in order to accommodate the expense type. Has your client/business reviewed whether this customisation is truly necessary? Would it be sufficient to have Other Opex and Other Capex or similar, but still map to either a capex or opex budget?

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Ravi54
Tera Expert

3 weeks ago

Totally agree with Kieran above. OpEx and CapEx aren’t just simple categorizations; they carry significant downstream implications that ultimately impact financial reporting, including the balance sheet.

 

CapEx (Capital Expenditure) typically relates to investments in long-term assets that support growth or extend useful life. These costs are capitalized and depreciated over time rather than expensed immediately, which affects asset valuation and expense recognition across multiple periods.

 

OpEx (Operating Expense), on the other hand, represents day-to-day operational costs such as salaries, subscriptions, or rent. These are expensed in the period incurred and generally provide immediate tax deduction treatment.

 

Because of the accounting, compliance, and reporting implications, it’s important to involve the Finance team early—ideally before moving forward with any structural or categorization changes.

 

From a system design perspective, if the goal is to support specific tracking or reporting needs, a practical approach might be to introduce a sub-category under the existing CapEx/OpEx structure rather than redefining the primary categories. This preserves financial governance while still allowing flexibility for operational or customization requirements within the platform.

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