Capability - Enterprise Allocation Modeling

Allocation Modeling for any Enterprise

Shared services allocations, transfer pricing, activity-based costing and product profitability. Go beyond IT allocations and move to true margin through building up full cost consumption. IT is one part of the enterprise, connect the rest.
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Half of our customers move beyond IT for transfer pricing, shared services and product costing

Hours to minutes

Transfer pricing from hours to minutes with complete end to end visibility, after consolidating 20+ divisional models into one framework with validated, auditable outputs.
Leading financial services provider

VAT optimization

A European bank recovered more VAT by using MagicOrange to attribute input VAT to the business units that consume each cost, separating taxable from exempt activity. Its partial exemption calculation is now built on actual consumption and is fully auditable.
European bank

34 brands

One shared services model spanning IT, HR and logistics, with standard rates and cost drivers and audit-ready dashboards.
Global retail group

Choose the right capability for your needs.

Shared Service and Enterprise Allocation Modeling answers what does anything truly cost? Connect shared service spend to the products, customers and business units that drive it, powering product profitability, transfer pricing and chargeback on any framework. Bring your own model and services or leverage built-in natively supported frameworks.If you want to run IT like a business, IT Financial Management answers what does IT cost?
Enterprise Allocation Modeling

What does anything cost?

IT Financial Management >

What does IT cost?

Bring your own allocation model and run it with as many layers and drivers as you need.

Bring your own model

Run your model, and keep your proprietary framework, no changes to fit into a vendor’s models.

Cost allocation and chargeback

Granular driver-based allocation from the general ledger through to the consumer.

All-Back trace

Analyze cost impact up and down the entire model in one view. When a business unit challenges a recharge, the answer is a trace, not a rebuild.

Multi-dimensional costing

Analyze your cost by what matters to you, line of business, business unit, product, customer, channel and legal entity.

Transfer pricing

Recharge across borders and complex legal entity structures. Separate cost from price at each allocation layer, with markup, discount and fixed-rate pricing on the rate card.

Framework templates

TBM, TBM Lite, IT Financial Management and CIGREF, each publishing a ready-to-go model.

No cap on layers

No limit on allocation stages, hops or layers.

Powerful allocation rules

Reusable multi-conditional logic with execution priority and sequence control, plus financial driver rules.

Shared services beyond IT

HR, finance, logistics and property in the same model as technology. A converged view of all spend in a single cost control center.

Volumetric drivers

Allocate on any basis from spreads or assumptions through to detailed consumption based on what was consumed: tickets, seats, storage, transactions, with direct integrations to source systems to keep the model current and commercially relevant.

Structural model changes? Minimal rebuild.

Update model structure and assumptions in minutes rather than hours or days.

Best-in-class engine

The most performant allocation engine. Process multiple iterations and versions a day versus waiting for your model and reports to populate.

Profitability modeling

Driver-based allocation of shared cost and pooled revenue. Cost to serve by product, customer and channel.

What analysts say about us

Allocation is the hard part, and Forrester gave MagicOrange its top score for it.

The Forrester Wave™: IT Financial Management Software, Q2 2026

Recognized as an established software offering since 2021.

Gartner, Market Guide for IT Financial Management Tools

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Questions it answers

What does one transaction actually cost us, fully loaded?
Which products or customers are we making a lower margin or loss on?
Which business units are consuming shared services they do not pay for?
If we change this driver, what happens to every downstream charge?
Where does this transfer price come from, and who approved the rate?

Enterprise Allocation Modeling reaches all of technology and the shared services.

Include technology, finance, HR, marketing, logistics and corporate real estate in a single view connected to the businesses they serve.

Solutions it serves

Cost allocation and cost transparency
Unit economics and cost to serve
Showback, chargeback and the Bill of IT
IFRS 17, VAT and transfer pricing

Bring your own cost model and see it running on MagicOrange.

Book a demo