Rollups for allocations
Summarize
Summary of Rollups for allocations
Rollups in ServiceNow’s allocation framework define how expenses allocated to lower-level accounts within a segment hierarchy are automatically propagated to higher-level accounts. This mechanism streamlines expense allocation by connecting accounts across hierarchical levels, ensuring expenses are accurately reflected up the hierarchy. Rollups can be configured specifically for individual accounts or broadly for entire segments, and they support flexible allocation paths including parent, grandparent, and sibling segments.
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Key Features
- Account-specific vs Segment-specific Rollups: Account-specific rollups allocate expenses from one precise account to one or more accounts above it and take precedence over segment-specific rollups, which apply to all accounts within a segment rolling up to the parent segment.
- Flexible Hierarchy Navigation: Rollups can allocate expenses not only to immediate parent segments but also to any ancestor segment (grandparent level) or sibling segments, enabling complex allocation structures.
- Weighted Metric Support with Total Weight: When using weighted metrics with total weight support, allocation percentages are calculated accurately, ensuring total allocations add up correctly even when accounts lack rollups or override segment rollups.
- Visibility and Management: Users can view accounts that roll up into a specific account, create rollups between accounts or segments, and edit existing rollup records to maintain accurate and up-to-date allocation rules.
Practical Application for ServiceNow Customers
By configuring rollups, customers can automate the distribution of expenses from detailed operational accounts to broader organizational accounts, simplifying financial reporting and budgeting processes. The priority of account-specific rollups ensures tailored allocations when necessary, while segment-level rollups offer broad, consistent expense distribution. Weighted metrics enhance the precision of allocations based on consumption or other metrics, supporting accurate financial analysis.
ServiceNow customers should use the rollup configuration tools to:
- Establish clear allocation flows within their account hierarchies.
- Leverage weighted metrics for precise expense distribution.
- Adjust rollups to reflect organizational changes or specific allocation requirements.
- Validate and preview allocations through related bucket assignment and expense review tasks.
A rollup is an allocation rule that specifies how a lower-level account in the segment hierarchy connects to other accounts above it in the hierarchy. Rollups allow you to allocate expenses to the lower-level account and have expenses automatically allocated to the higher-level accounts.
Rollups can be account-specific or segment-specific. Account-specific rollups specify how expenses roll up from one specific account to one or more accounts above it. Segment-specific rollups specify how expenses in all the accounts for a segment roll up to all the accounts in the segment above it, that is the parent level. You can also roll up segments to any segment preceding in the hierarchy, that is to the grandparent level.
- An account-specific rollup that allocates expenses in the email account in the business service segment to the IT account in the business unit segment.
- A segment-specific rollup that allocates expenses in the business service segment to the business unit segment.
Then the account-specific rollup allocates the expenses. The segment-specific rollup does not allocate any expenses.
Account-specific level rollup supports rolling to any parent or grandparent account in the hierarchy. You can roll up the expenses to any account up in the hierarchy, and not necessarily to the immediate parent in the hierarchy.
Rollups can not only be up in the hierarchy, you can also roll up amounts to accounts in the sibling segments.
Configure the rollup at the account level to any parent segment in the hierarchy, by selecting the Parent Segment in the Rollups popup.
Total weight support for allocations using weighted metric
If you use a weighted metric that is enabled with total weight support, then the metric calculates the allocation percentage accurately in the following total weight calculations:
- At segment level rollup, where allocate to metric is used and accounts do not have any rollup, the total percentages of all accounts in the segment add up to be less than 100%.
- At segment level rollup, where allocate to metric is used, the percentage of each account in the segment is calculated based on the consumption weight of the account.
- At account level rollup, where the account level rollup rule overrides the segment level rollup rule, the total percentage of all accounts adds up to be less than 100%.
- At account level rollup, the percentage of each account is calculated based on the consumption weight of the account.
- When allocating a bucket amount to a segment, the total percentage allocated to the segment adds up to be less than 100%.
- When allocating a bucket amount to a segment, the percentage allocated individually to each account in the segment is calculated based on the consumption weight of the account.