EffectiveCost

What it is

Effective Cost represents the cost of a charge based on the resources used, services used, or contract commitments recognized in a given charge period. Effective Cost differs from Billed Cost when covering charges (e.g., prepaid or postpaid commitment purchases) are recorded separately from the covered charges to which they are applied. For all charges, Effective Cost reflects all applicable pricing adjustments (e.g., reduced pricing from negotiated discounts or commitment discounts). For usage charges, Effective Cost includes the recognized portion of Billed Cost from related purchase charges (e.g., amortized portions of prepayments, drawdowns). For purchase charges, Effective Cost excludes any amounts recognized in related usage charges (e.g., usage covered by covering charges such as commitments, prepayments, or marketplace purchases which draw down based on usage), regardless of when

Requirements (14)

Verbatim from the specification. These are the statements the validator checks against.

• EffectiveCost MUST be of type Decimal.
• EffectiveCost MUST conform to NumericFormat requirements.
• EffectiveCost MUST NOT be null.
• EffectiveCost MUST be denominated in the BillingCurrency.
• EffectiveCost MUST reflect all applicable pricing adjustments, including but not limited to negotiated discounts, commitment discounts, and other applicable discount programs.
• EffectiveCost MUST equal BilledCost when ChargeCategory is "Usage" and the charge is not covered by other eligible charges.
• EffectiveCost MUST equal BilledCost when ChargeCategory is "Purchase" and the charge is neither intended to cover other eligible charges nor covered by other eligible charges.
• EffectiveCost MUST equal BilledCost when ChargeCategory is "Tax" or "Credit".
• EffectiveCost MAY differ from BilledCost when ChargeCategory is "Adjustment".
• EffectiveCost MUST include any portion of the BilledCost of covering purchase charges (i.e., ChargeCategory is "Purchase") that is applied to this charge.
• EffectiveCost MUST be 0 when ChargeCategory is "Purchase" and the purchase is intended to cover related eligible charges. This requirement applies even when the covered charges originate from different CostAndUsage dataset instances, possibly from a different ServiceProviderName.
• EffectiveCost MUST be 0 for charges generated by entities that do not originate the cost and usage data, to avoid double-counting when merging multiple dataset instances.
• The sum of EffectiveCost across all related covering and covered charges MUST equal the sum of BilledCost across the same set of charges, within the charge period of the covering charges, when both the covering and covered charges are present in the dataset instance.
• The sum of EffectiveCost for a given billing period MAY differ from the sum of BilledCost when covered and covering charges span multiple billing periods or billing accounts, or when only one side of a covering relationship is present in the dataset instance.

Other Cost and Usage columns