Skip to content

Commit

Permalink
[EDITORIAL] EffectiveCost: convert normative statements into bullet p… (
Browse files Browse the repository at this point in the history
#659)

This PR is related to the issue
#606
and converts normative statements into bullet points.

---------

Co-authored-by: Irena Jurica <[email protected]>
  • Loading branch information
jpradocueva and ijurica authored Dec 6, 2024
1 parent 0332c1b commit 404fe4c
Showing 1 changed file with 6 additions and 1 deletion.
7 changes: 6 additions & 1 deletion specification/columns/effectivecost.md
Original file line number Diff line number Diff line change
Expand Up @@ -7,7 +7,12 @@ This column resolves two challenges that are faced by practitioners:
1. Practitioners need to *amortize* relevant purchases, such as upfront fees, throughout the *commitment* and distribute them to the appropriate reporting groups (e.g. [*tags*](#glossary:tag), [*resources*](#glossary:resource)).
2. Many [*commitment discount*](#glossary:commitment-discount) constructs include a recurring expense for the *commitment* for every [*billing period*](#glossary:billing-period) and must distribute this cost to the *resources* using the *commitment*. This forces reconciliation between the initial *commitment* [*row*](#glossary:row) per period and the actual usage *rows*.

The EffectiveCost column MUST be present in a [*FOCUS dataset*](#glossary:FOCUS-dataset) and MUST NOT be null. This column MUST be of type Decimal, MUST conform to [Numeric Format](#numericformat) requirements, and be denominated in the BillingCurrency. EffectiveCost MUST be 0 when ChargeCategory is "Purchase" and the purchase is intended to cover future eligible charges. The aggregated EffectiveCost for a billing period may not match the charge received on the invoice for the same *billing period*.
The EffectiveCost column adheres to the following requirements:

* The EffectiveCost column MUST be present in a [*FOCUS dataset*](#glossary:FOCUS-dataset) and MUST NOT be null.
* This column MUST be of type Decimal, MUST conform to [Numeric Format](#numericformat) requirements, and be denominated in the BillingCurrency.
* EffectiveCost MUST be 0 when ChargeCategory is "Purchase" and the purchase is intended to cover future eligible charges.
* The aggregated EffectiveCost for a billing period may not match the charge received on the invoice for the same *billing period*.

In cases where the [ChargeCategory](#chargecategory) is not "Usage" or "Purchase", the following applies:

Expand Down

0 comments on commit 404fe4c

Please sign in to comment.