"Include credits in reallocation" in Cost Reallocation

Products

• CloudHealth

Issue/Introduction

The "Include credits in reallocation” option does not mean that the platform will not reallocate credits unless this is enabled.
This functionality is used while determining the ratios of destinations for the reallocated assets.

Resolution

For example, assume you want to reallocate costs from 1 group to all remaining groups of the perspective.
 
The source is the Group which assets are being reallocated from, while the Destination is the remaining groups of the perspective.
 
Assume there are 3 Destination groups:

1. Group 1 has $1 cost
2. Group 2 has $3 of cost and $-2 of credit (effectively total cost is $1 for Group 2)
3. Group 3 has $1 cost
    

When “Include credits in reallocation” is turned on:
We consider Group 2’s cost as $1
The "sum of all groups" is $3
Group 1 has $1, Group 2 has $1, and Group 3 has $1. The ratio we apply to each bucket is 1/3 for all three Groups
 
When “Include credits in reallocation” is turned off:
We consider Group 2’s cost as $3 (as we ignore the $2 credits)
The "sum of all groups" is $5
Group 1 has $1, Group 2 has $3, and Group 3 has $1. The ratio we apply to each bucket is 1/5 for Group1, Group3 and 3/5 for Group 2

In short, the platform does not use “Include credits in reallocation” toggle to decide whether credits need to be reallocated.  It is a calculation of ratios for destination groups of reallocated assets.