Cost Allocation Strategies
Learn how to allocate shared costs between dimensions, or distribute them within cloud scopes, using the Cost Allocation Strategies module.
Pelanor Cost Allocation Strategies
Cost Allocation Strategies Overview
Cost Allocation Strategies (CAS) in Pelanor let you distribute shared costs across the dimensions that matter to your business. Typical uses include:
- Splitting recurring CSP costs (licensing, support fees) evenly across departments
- Allocating shared networking costs to product lines based on proportional usage
- Spreading data-warehouse costs to departments by query volume or runtime
Once activated, CAS adjustments appear in every report and dashboard.
Viewing and Editing Cost Allocation Strategies
If you’re inside a specific workspace, only that workspace’s strategies appear. Switch to the Default Workspace to view or edit cross-workspace strategies. See Workspaces and User Management for details on role-based access.
Open Settings → Cost Allocation Strategies to manage strategies.
Custom vs. Predefined Strategies
| Type | Description |
|---|---|
| Predefined | Maintained by Pelanor to handle nested entities (e.g., databases → VMs). Read-only. |
| Custom | Created by users with Admin / Workspace Admin roles. All others are read-only. |
Strategy Execution Order
Strategies run top-to-bottom. Re-order them using Strategies Order.
Example:
- Distribute Specific Network Costs by Usage – allocate VPC/ELB costs to departments
- Allocate Remaining Costs Equally – split licensing/support fees among departments
Reversing the order changes the outcome and may distort allocations.
Allocation Types
Pelanor supports three types of cost allocation:
Segment Allocation (most common)
Splits costs to custom dimension segments (e.g., departments, product lines).
When to use:
- You need a high-level breakdown by org units
- Simplicity is more important than fine-grained accuracy
Example: Three product lines share resources; costs are split proportionally.
Key parameters:
| Setting | Notes |
|---|---|
| Allocation Method | Proportional, Fixed, or Metric-based |
| Dimension | Dimension whose segments receive the allocation |
Relational Allocation
Maps costs among interdependent resources (e.g., DB costs to workloads).
When to use:
- You need usage-based splits that follow cross-service relationships
Example: A database serves 3 workloads → split costs by query count.
Key parameter:
- Filter (optional) – limits the source cost pool
Scope Allocation
Allocates costs by cloud scopes: Billing Account, Subaccount, Region, AZ.
When to use:
- You need visibility by infra/geography rather than business team
Example: Break down costs per region to surface hot zones
Key parameters:
| Setting | Notes |
|---|---|
| Distribution Scope | Billing Account, Subaccount, AZ, Region |
| Allocation Metric | Determines how costs are proportioned |
| Filter (optional) | Restricts source costs |
Creating a Cost Allocation Strategy
Define Source Costs
- Select allocation conditions – e.g., filter for
aws_networking,VPC,ELB - Configure waste allocation – default: Include Unutilized Capacity
- Choose usage subcategories – e.g., Cross AZ Traffic
- Core vs. Associated – use Associated unless it’s baseline (e.g., control plane)
Cost Recipient Configuration
See Allocation Types section above for detailed explanations.
- Select Allocation Type
- Choose Allocation Method
- Specify Parameters – dimension, metric, or fixed shares
Simulate and Save Strategy
- Click Simulate to preview the resource graph and flows
- Click Save to activate
By following these steps, you’ll enable accurate and meaningful cost distribution across departments, product lines, or any custom dimension in your Pelanor environment.