FOCUS Specification

2.8.1 Description

FOCUS supports comparing cost columns to identify savings from negotiated discounts, the impact of commitment discount amortization, and differences between cash-based and accrual-based cost perspectives.

BilledCost represents the cash-based view: amounts invoiced by the InvoiceIssuerName in a given billing period. EffectiveCost represents the accrual-based view: costs recognized when resources are consumed, services are used, or contract commitments are recognized. ListCost provides the pre-discount baseline. ContractedCost reflects pricing after negotiated discounts.

Comparing ListCost against ContractedCost quantifies negotiated discount savings; comparing ContractedCost against EffectiveCost isolates commitment discount savings; comparing EffectiveCost against ListCost shows total combined savings. BilledCost and EffectiveCost diverge when billing timing differs from consumption, such as with commitment discounts or prepaid purchases.

When comparing costs across marketplace boundaries, practitioners should be aware that BilledCost is zero for charges generated by entities not responsible for invoicing, so BilledCost and EffectiveCost sums may not align within a single dataset when covering charges and covered charges span multiple invoice issuers. This is expected and does not indicate a data quality issue. See the Marketplace Purchases supported feature, Examples: Commitment Discount Flexibility, and Examples: SaaS for additional context.

2.8.2 Directly Dependent Columns

Billed Cost Contracted Cost Effective Cost List Cost

2.8.3 Supporting Columns

Billing Account ID Billing Account Name Billing Currency Billing Period End Billing Period Start Charge Category Charge Period End Charge Period Start Commitment Discount ID Invoice Issuer Name Service Name Service Provider Name

2.8.4 Example SQL Queries

2.8.4.1 Discount Effectiveness by Service

WITH AggregatedData AS (
  SELECT
    ServiceProviderName,
    BillingAccountId,
    BillingAccountName,
    BillingCurrency,
    ServiceName,
    SUM(EffectiveCost) AS TotalEffectiveCost,
    SUM(BilledCost) AS TotalBilledCost,
    SUM(CASE
          WHEN ChargeCategory = 'Usage' AND BilledCost = 0 AND EffectiveCost != 0
          THEN 0
          ELSE ContractedCost
        END) AS TotalContractedCost,
    SUM(CASE
          WHEN ChargeCategory = 'Usage' AND BilledCost = 0 AND EffectiveCost != 0
          THEN 0
          ELSE ListCost
        END) AS TotalListCost
  FROM focus_data_table
  WHERE BillingPeriodStart >= ?
    AND BillingPeriodEnd < ?
    AND ChargeClass IS NULL
  GROUP BY
    ServiceProviderName,
    BillingAccountId,
    BillingAccountName,
    BillingCurrency,
    ServiceName
)
SELECT ServiceProviderName,
    BillingAccountId,
    BillingAccountName,
    BillingCurrency,
    ServiceName,
    TotalEffectiveCost,
    TotalBilledCost,
    TotalListCost,
    (1 - TotalContractedCost / NULLIF(TotalListCost, 0)) * 100 AS ContractedDiscount,
    (1 - TotalEffectiveCost / NULLIF(TotalListCost, 0)) * 100 AS EffectiveDiscount
FROM AggregatedData

2.8.4.2 Cash vs. Accrual Comparison by Billing Period

SELECT
  ServiceProviderName,
  InvoiceIssuerName,
  BillingPeriodStart,
  BillingPeriodEnd,
  SUM(BilledCost) AS TotalBilledCost,
  SUM(EffectiveCost) AS TotalEffectiveCost,
  SUM(EffectiveCost) - SUM(BilledCost) AS CostBasisDifference
FROM focus_data_table
WHERE BillingPeriodStart >= ? AND BillingPeriodEnd < ?
GROUP BY
  ServiceProviderName,
  InvoiceIssuerName,
  BillingPeriodStart,
  BillingPeriodEnd
HAVING ABS(SUM(EffectiveCost) - SUM(BilledCost)) > 0.01

Billed Cost Invoice Issuer Name Effective Cost List Cost Contracted Cost

Glossary

Negotiated Discount Commitment Discount Cash-Based Accounting Accrual-Based Accounting Billing Period Resource Service Contract Commitment Charge Covering Charge Covered Charge Invoice Issuer

Features

Marketplace Purchases

2.8 Cost Comparison