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Set Up Chargeback and Allocation

Chargeback and showback answer the accountability question at the heart of FinOps: which team, project, or business unit is responsible for which spend? KOSTRA lets you define how shared cost is split and produce a chargeback report you can share with finance. This guide shows how.

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Direct versus shared spend

Some cost is directly attributable — a resource belongs to one pool, and its spend is that pool’s. Other cost is shared — a platform, a support contract, or a common service used by several teams. Chargeback is mostly about splitting that shared cost fairly. KOSTRA handles the direct part through pool assignment and the shared part through allocation rules.

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Choose an allocation method

KOSTRA supports three ways to split a shared cost across target pools:
MethodHow the split worksUse when
EqualThe cost is divided evenly across the target pools.Every team should bear an equal share regardless of size.
WeightedEach pool’s share is proportional to a weight you assign.You know the relative share each team should carry.
ProportionalEach pool’s share tracks its own spend as a fraction of total spend.The fairest split is “you pay in proportion to what you use.”
Choosing the right method is a policy decision as much as a technical one; agree it with finance before you build the rules.

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Create an allocation rule

  1. In the left navigation, open Allocation Rules.
  2. Create a new rule.
  3. Identify the source of shared cost the rule applies to.
  4. Select the target pools that should receive a share.
  5. Choose the allocation method — equal, weighted, or proportional — and, for weighted, set each pool’s weight.
  6. Save the rule.
You can create multiple rules to reflect different shared costs and different splits. Rules can be edited or removed as your organization and its cost-sharing agreements change.

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Run the chargeback report

  1. Open the Chargeback Report.
  2. Set the reporting period with start and end dates.
  3. Review the resulting attribution: direct spend per pool plus each pool’s allocated share of shared cost.
The report reflects both your pool assignments and your allocation rules, giving each pool a defensible total for the period.

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Export for finance

When you need the numbers outside KOSTRA — for an invoice, a budget review, or a finance system — export the pool expenses to a spreadsheet. The exported file gives finance a shareable, auditable breakdown they can work with directly.

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Make chargeback trustworthy

Chargeback only works if the underlying attribution is complete and consistent:
  • Assign every resource. Unassigned resources cannot be charged back — see Organize Spend with Pools.
  • Agree the method up front. Equal, weighted, and proportional produce very different bills; alignment prevents disputes later.
  • Report on a regular cadence. A monthly rhythm makes chargeback a routine, not an argument.