Cost Type

The Cost Center provides you with two types of costs.

• Original cost: reflects the original usage and purchase. The cost is calculated based on the list price with discounts (not cash coupons) applied. To view the expenditures after both discounts and cash coupons are applied, see the net original cost.
• Amortized cost: reflects the amounts prepaid for yearly/monthly subscriptions, which are amortized on a daily basis. For example, if you purchase a one-year cloud service at $365 USD, the amortized cost per day is $1 USD. For details about how to calculate amortized costs, see Cost Amortization Rules. Cash coupons are not considered when the cost is amortized. To learn about the amortized cost after cash coupons are applied, see the net amortized cost.