Glossary
Chargeback and showback
Chargeback is billing internal teams or external customers for the LLM costs they caused; showback is reporting those costs to them without moving money.
Why it matters
Both are standard FinOps practice for cloud spend, and LLM spend is arriving at the same treatment — with the complication that the cost-causing unit is an agent rather than a server, and one API key typically serves many cost centers at once. Showback usually comes first: teams see their number for a few cycles before anyone is charged against it.
Example
A platform team runs shared agent infrastructure for six product teams. Showback sends each team a monthly statement of the spend its agents caused; chargeback debits their cost centers for it. Either way the prerequisite is the same: spend attributed per team, reliably enough for finance to act on.
How it's measured
By the completeness and auditability of the attribution feeding it — unattributed spend has to land somewhere, and how large that bucket is determines whether finance trusts the report. Capsera carries team, customer, and cost-center identifiers on events for exactly this decomposition.
Questions this page answers
- What's the difference between showback and chargeback?
- Showback reports to a team or customer what their AI usage cost, without moving any money. Chargeback bills them for it, debiting a cost centre or adding it to an invoice. Showback usually comes first in practice: teams see their number for a few cycles and correct the obvious waste before anyone is charged against it.
- How do I give each team visibility into its own AI spend?
- Attribute every call to a team identifier at the point it is made, then report per-team totals on the team's own cadence rather than only in an aggregate. The prerequisite is that attribution coverage is high enough to trust — a large unattributed bucket destroys confidence in every team's number. Showback works when a team can see both its total and which of its agents drove it.