chargeback
/ˈtʃɑːrdʒ.bæk/
Definition
An internal financial accounting practice where the costs of shared IT or cloud resources are allocated and billed back to the specific business units or departments that actually consumed them.
Etymology
Derived from the combination of 'charge' (to debit an account) and 'back' (a return). It originated in banking and accounting to describe the reversal or redirection of funds, later being adopted by IT and cloud management to signify cost allocation.
In the news
The article mentions building internal chargeback reports to help FinOps teams accurately attribute AI usage costs to different business units. This process ensures that departments are held financially accountable for the AI services they utilize.
FinOps for AI: Snowflake's AI Cost Management and Governance Tools
Read the full article ↗Snowflake