Financial Management: Difference between revisions

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'''ITIL Version''': ITIL Version 3 (ITIL V3)
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== ITIL Financial Management: Overview ==


'''Process Objective''': To manage the service provider's budgeting, accounting and charging requirements.
'''Process Objective''': To manage the service provider's budgeting, accounting and charging requirements.
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'''Part of''': [[ITIL V3 Service Strategy|Service Strategy]]
'''Part of''': [[ITIL V3 Service Strategy|Service Strategy]]


'''Process Owner''': [[Roles within ITIL V3#Financial Manager|Financial Manager]]
'''Process Owner''': [[Financial Management#ITIL Roles in Financial Management|Financial Manager]]
 
 
== ITIL Financial Management: Process Definition ==


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==Sub-Processes of Financial Management (ITIL V3)==
Essentially, the activities and process objectives of the Financial Management process are identical in ITIL V2 and ITIL V3. [[Financial Management for IT Services|Financial Management for IT Services]] was part of "Service Delivery" in ITIL V2.


[[Image:overview_financial_management_itilv3_thumb.jpg|frame|left|[https://wiki.en.it-processmaps.com/images/pdf/process_overview_financial_management_itilv3.pdf  Overview of the Financial Management Process, ITIL V3 (.pdf)]]]
The following sub-processes are part of [[Financial Management|Financial Management according to ITIL V3]]:
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=== Sub-Processes ===


;Financial Management Support
;Financial Management Support
:Process Objective: To define the necessary structures for the management of financial planning data and costs, as well as for the allocation of costs to services.
:Process Objective: To define the necessary structures for the management of [[Financial Management#Financial Data Categories|financial planning data]] and costs, as well as for the allocation of [[Financial Management#Cost Data for Service Provisioning|costs to services]].


;Financial Planning
;Financial Planning
:Process Objective: To determine the required financial resources over the next planning period, and to allocate those resources for optimum benefits.
:Process Objective: To determine the required financial resources over the next planning period ("[[Financial Management#IT Budget|IT Budget]]"), and to [[Financial Management#Budget Allocation|allocate those resources]] for optimum benefits.


;Financial Analysis
;Financial Analysis and Reporting
:Process Objective: To analyze the structure of service provisioning cost and the profitability of services. The resulting financial analysis allows Service Portfolio Management to make informed decisions when deciding about changes to the Service Portfolio.
:Process Objective: To analyze the structure of service provisioning cost and the profitability of services. The resulting [[Financial Management#Financial Analysis|financial analysis]] allows [[Service Portfolio Management]] to make informed decisions when deciding about changes to the [[Service Portfolio Management#Service Portfolio|Service Portfolio]].


;Service Invoicing
;Service Invoicing
:Process Objective: To issue invoices for the provision of services and transmission of the invoice to the customer.
:Process Objective: To issue [[Financial Management#Invoice|invoices]] for the provision of services and transmission of the invoice to the customer.


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== Related Key Performance Indicators ==
=== ITIL Terms: Financial Management ===
* [[ITIL KPIs Service Strategy#ITIL KPIs Financial Management|KPIs Financial Management]]
 
;<span id="Budget Request">Budget Request</span>
:A request for a budget, typically issued from any of the Service Management processes at the same time when compiling a Request for Change. An approved Budget Request means that the required financial resources for implementing a Change are approved by Financial Management.
 
;<span id="Budget Allocation">Budget Allocation</span>
:A budget allocated by the Financial Manager to implement a Change. Budget Allocations are issued in response to Budget Requests originating from any Service Management process in conjunction with Requests for Change.
 
;<span id="Cost Data for Service Provisioning">Cost Data for Service Provisioning</span>
:The cost for providing a service, calculated by Financial Management as a basis for calculating the price a customer is expected to pay for a service.
 
;<span id="Financial Analysis">Financial Analysis</span>
:The Financial Analysis is an important input to the Portfolio Management process. It contains information on the costs for providing services and provides insight into the profitability of services and customers (see also: [[Checklist Financial Analysis|ITIL Checklist Financial Analysis]]).
 
;<span id="Financial Data Categories">Financial Data Categories</span>
:Various categories are used to structure financial data, as a means to gain insight into the underlying costs of service provisioning and service profitability.
 
;<span id="Indirect Cost Allocation Table">Indirect Cost Allocation Table</span>
:A table used to allocate indirect costs that are shared among multiple services, defining the rules how those costs are spread among the services.
 
;<span id="Invoice">Invoice</span>
:The invoice for the delivery of a service or product.
 
;<span id="IT Budget">IT Budget</span>
:The IT Budget is an annual financial plan that provides a forecast of expected expenditures and allocates financial resources to the various service management processes and organizational units within the IT organization.
 
 
== Additional Information on Financial Management ==
 
==== ITIL KPIs and Checklists ====
* [[ITIL KPIs Service Strategy#ITIL KPIs Financial Management|Key Performance Indicators (KPIs) Financial Management]]
* [[Checklist Financial Analysis|Checklists Financial Management: Checklist Financial Analysis]]
 
 
==== ITIL Roles in Financial Management ====
 
;Financial Manager - Process Owner
:The Financial Manager is responsible for managing an IT service provider's budgeting, accounting and charging requirements.




==Roles within Financial Management (ITIL V3)==


* [[Roles within ITIL V3#Financial Manager|Financial Manager]] (Process Owner)




==Related ITIL Glossary Terms==
<!-- This page is assigned to the following categories: -->
* [[ITIL Glossary#Budget Request|Budget Request]]
[[Category:ITIL V3]][[Category:ITIL process]][[Category:Service Strategy|Financial Management]][[Category:Financial Management|!]]
* [[ITIL Glossary#Budget Allocation|Budget Allocation]]
<!-- --- -->
* [[ITIL Glossary#Cost Data for Service Provisioning|Cost Data for Service Provisioning]]
* [[ITIL Glossary#Financial Analysis|Financial Analysis]]
* [[ITIL Glossary#Financial Data Categories|Financial Data Categories]]
* [[ITIL Glossary#Indirect Cost Allocation Table|Indirect Cost Allocation Table]]
* [[ITIL Glossary#Invoice|Invoice]]
* [[ITIL Glossary#IT Budget|IT Budget]]

Revision as of 08:57, 12 April 2010

Financial Managementdiese Seite auf Deutschesta página en español
Financial Management


ITIL Financial Management: Overview

Process Objective: To manage the service provider's budgeting, accounting and charging requirements.

Part of: Service Strategy

Process Owner: Financial Manager


ITIL Financial Management: Process Definition

ITIL Financial Management

Essentially, the activities and process objectives of the Financial Management process are identical in ITIL V2 and ITIL V3. Financial Management for IT Services was part of "Service Delivery" in ITIL V2.

The following sub-processes are part of Financial Management according to ITIL V3:

Sub-Processes

Financial Management Support
Process Objective: To define the necessary structures for the management of financial planning data and costs, as well as for the allocation of costs to services.
Financial Planning
Process Objective: To determine the required financial resources over the next planning period ("IT Budget"), and to allocate those resources for optimum benefits.
Financial Analysis and Reporting
Process Objective: To analyze the structure of service provisioning cost and the profitability of services. The resulting financial analysis allows Service Portfolio Management to make informed decisions when deciding about changes to the Service Portfolio.
Service Invoicing
Process Objective: To issue invoices for the provision of services and transmission of the invoice to the customer.


ITIL Terms: Financial Management

Budget Request
A request for a budget, typically issued from any of the Service Management processes at the same time when compiling a Request for Change. An approved Budget Request means that the required financial resources for implementing a Change are approved by Financial Management.
Budget Allocation
A budget allocated by the Financial Manager to implement a Change. Budget Allocations are issued in response to Budget Requests originating from any Service Management process in conjunction with Requests for Change.
Cost Data for Service Provisioning
The cost for providing a service, calculated by Financial Management as a basis for calculating the price a customer is expected to pay for a service.
Financial Analysis
The Financial Analysis is an important input to the Portfolio Management process. It contains information on the costs for providing services and provides insight into the profitability of services and customers (see also: ITIL Checklist Financial Analysis).
Financial Data Categories
Various categories are used to structure financial data, as a means to gain insight into the underlying costs of service provisioning and service profitability.
Indirect Cost Allocation Table
A table used to allocate indirect costs that are shared among multiple services, defining the rules how those costs are spread among the services.
Invoice
The invoice for the delivery of a service or product.
IT Budget
The IT Budget is an annual financial plan that provides a forecast of expected expenditures and allocates financial resources to the various service management processes and organizational units within the IT organization.


Additional Information on Financial Management

ITIL KPIs and Checklists


ITIL Roles in Financial Management

Financial Manager - Process Owner
The Financial Manager is responsible for managing an IT service provider's budgeting, accounting and charging requirements.
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