> ## Documentation Index
> Fetch the complete documentation index at: https://docs.pelanor.io/llms.txt
> Use this file to discover all available pages before exploring further.

# 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

<Frame>
  <img src="https://mintlify.s3.us-west-1.amazonaws.com/pelanor-6a347cfc/images/cas-1.png" alt="Cost Allocation Strategies Image" />
</Frame>

## 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

<Frame>
  <img src="https://mintlify.s3.us-west-1.amazonaws.com/pelanor-6a347cfc/images/cas-4.png" alt="Cost Allocation Strategies Image" />
</Frame>

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.

<Info>
  Open **Settings → Cost Allocation Strategies** to manage strategies.
</Info>

## 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:

1. **Distribute Specific Network Costs by Usage** – allocate VPC/ELB costs to departments
2. **Allocate Remaining Costs Equally** – split licensing/support fees among departments

<Warning>
  Reversing the order changes the outcome and may distort allocations.
</Warning>

## 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

<Steps>
  <Step title="Define Source Costs">
    <Frame>
      <img src="https://mintlify.s3.us-west-1.amazonaws.com/pelanor-6a347cfc/images/cas-2.png" alt="Cost Allocation Strategies Image" />
    </Frame>

    * **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)
  </Step>

  <Step title="Cost Recipient Configuration">
    <Frame>
      <img src="https://mintlify.s3.us-west-1.amazonaws.com/pelanor-6a347cfc/images/cas-3.png" alt="Cost Allocation Strategies Image" />
    </Frame>

    <Info>
      See *Allocation Types* section above for detailed explanations.
    </Info>

    * **Select Allocation Type**
    * **Choose Allocation Method**
    * **Specify Parameters** – dimension, metric, or fixed shares
  </Step>

  <Step title="Simulate and Save Strategy">
    * Click **Simulate** to preview the resource graph and flows
    * Click **Save** to activate
  </Step>
</Steps>

By following these steps, you’ll enable accurate and meaningful cost distribution across departments, product lines, or any custom dimension in your Pelanor environment.