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In this overview, we'll show you the highlights of IT Financial Management. IT Financial Management is an industry term where the role of IT and customers is evolving to one that is of a strategic partner with the business. If a business has an IT Finance department, it may be responsible for all IT planning,budgeting, and forecasting what the costs may be over the next five years. In order to become a better partner with the rest of the enterprise IT Finance can: Provide greater transparency for IT shared services. Optimize IT investment decisions. Promote partnership with the business. IT Financial Management consists of Service Costing, Bill of IT, Projects, Spend, and Data Management. IT Planning is a key process that helps in making the right spending decisions for better business outcomes. IT leaders are looking at investing in different types of Projects. For example, they have projects that ensure that IT supports business growth and is focusing on projects that will transform the business to the next level through technology. You can review the IT spend from the previous year, and plan on top down allocations of IT spend by region, cost, services, and projects. IT Managers have more detailed planning to allocate spend by services and applications... And can allocate the investments to run, grow and transform projects. You can do more detailed project planning, to plan by resource and understand project costs and benefits before submitting plans for approval. You can then compare the plan against what is actually spent and review variations and deviations using IT Costing. You can realign your financial data to cost out all of your services and assets, and potentially charge those costs to your consumers. For example, using a cost model with data from the General Ledger, Projects, and Fixed assets... using the dimensions of Account, Entity, Project, Resource (which is equipment or software), Service, and Consumer you can cost out a project. You can take the overhead and move it to project. Then take the G/L data and the Project Data and push them out to project and services. Take all the resource costs and push them out to a service. Accurate service costs and consumption rates allow you to charge out the cost of IT services in a transparent and equitable manner. Charge back is when you actually charge your consumer. Show back is what you could charge the consumer, but you only show them what it costs. For example, if your company doesn't actually charge for IT services it can show a department what it would cost for those services. Service costing is supported by a business user controlled cost modeling system with the following benefits: Simple point and click user control Transparency of results and auditability. Purpose built rule engine. Access to operational data outside of G/L. Pre-built analytics. The Bill of IT reporting includes Chargeback and Charge Rate and Drivers. Service Costing reports include the cost per supported user and project and resource consumption. Project Costing reports include run vs. build and Capex vs Opex In this overview, we showed you the highlights of IT Financial Management. To learn more, visit cloud.oracle.com.