Chargebacks for telecom services are a sure way to rein in spending by increasing visibility for expenses. When you implement a chargeback program there are some important considerations.
First, define the information that managers want to see on reports. Will the reports provide summary level information or will there be details about calling activity? You should ensure that the data elements, which you want to report on, are captured in your telecom carriers’ billing. For example many carriers may not provide call detail records. Polling of Private Branch Exchange (PBX) systems for fixed voice services can help capture the data and provide granular information about individual users’ consumption of phone services. Also consider privacy issues. In Europe, caller information must not be included in reports. Here in the US, it is important to balance the benefits of providing granular data with privacy concerns.
Managers should consider the services that will be included (consumption, recurring costs, vendor usage, and infrastructure.) It is also necessary to identify the criteria for pricing services. This can include the actual contract rates, invoices, or some other formula from tariffs. Many organizations add a mark-up to the expenses to cover with common network infrastructure and operational costs to manage the telecom department. Also consider compensation for un-priced data (time of day, metered vs. fixed). Finally, determine how to pro-rate summarized vendor charges for taxes, late fees, credits, and miscellaneous charges.
It is critical to develop clear communications to users about how price points are allocations are determined. Many organizations develop FAQs to deal with Frequently Asked Questions. For example, employees may be curious to learn how the system will deal with mid-month transfers of employees and services. Obtaining management buy-in for the program will help to address some resistance to the program. Chargebacks are now common for most Information Technology expenses.
While the costs for voice services are declining, call accounting is gaining in popularity because communication expenses are rising. Costs are growing from increased use and new services like wireless phones, mobile email, and data applications, which rely on laptops, netbooks and a proliferation of smartphones. Chargeback allocation to locations, departments and individuals improve financial accountability. Value-add benefits from chargebacks drive savings through improved sourcing of contracts, better negotiation, bill validation, expense optimization, and productivity studies, which can improve your bottom line.
