Cost Allocation Sankey Diagram: Editable Template
Show how shared cost pools such as IT, facilities and HR are allocated to departments. Replace the amounts with your allocation results to explain who bears which costs.
A cost allocation Sankey puts the pools of shared cost on the left and the departments that bear them on the right. The ribbons are the allocation, so a stakeholder can see exactly how their charge was built.
Three shared cost pools, IT, facilities and HR/admin, total two million euros. Each is allocated across Sales, Engineering, Operations and Support.
The diagram presents allocations that have already been calculated, for example by headcount or floor area. It does not choose the allocation basis, and the amounts here are invented.
How to read this diagram
- 2,000 k€ of shared cost is allocated: IT 900, facilities 600, HR and administration 500.
- Engineering bears 850 k€ (42.5%), the largest share, and half of the IT pool goes to it.
- Support carries the smallest charge, 230 k€.
- Every pool is fully allocated: nothing is left unassigned.
The data behind it
Invented figures for illustration. Not data about any real business.
| From | To | Amount (k€) |
|---|---|---|
| IT | Sales | 200 |
| IT | Engineering | 450 |
| IT | Operations | 150 |
| IT | Support | 100 |
| Facilities | Sales | 150 |
| Facilities | Engineering | 200 |
| Facilities | Operations | 200 |
| Facilities | Support | 50 |
| HR and administration | Sales | 100 |
| HR and administration | Engineering | 200 |
| HR and administration | Operations | 120 |
| HR and administration | Support | 80 |
The same data as CSV
source,target,value
IT,Sales,200
IT,Engineering,450
IT,Operations,150
IT,Support,100
Facilities,Sales,150
Facilities,Engineering,200
Facilities,Operations,200
Facilities,Support,50
HR and administration,Sales,100
HR and administration,Engineering,200
HR and administration,Operations,120
HR and administration,Support,80How it works
List the cost pools
Include only costs that are shared and allocated, not costs already direct to a department.
State the allocation basis
For example headcount for HR, floor area for facilities, usage for IT.
Enter the allocated amounts
Type each pool-to-department amount from your allocation worksheet.
Check that pools are fully allocated
Each pool should send out exactly its total.
Frequently asked questions
Does the chart calculate the allocation?
No. It displays amounts you have calculated. Use your spreadsheet or finance system to compute them.
Can I add a second stage?
Yes, for example department to product line. Each stage must again balance.
Edit this allocation Sankey
Open the example as your own chart and enter your pools and allocations.