> ## Documentation Index
> Fetch the complete documentation index at: https://docs.nectarclimate.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Cost allocation

> How Nectar distributes charges across meters and sites when a bill covers multiple services.

<Tip>
  Need help in this area? See [Methodology FAQ](/platform/methodology/faq).
</Tip>

Many utility bills cover multiple meters or service points on a single invoice. To show you accurate costs per meter and per site, Nectar allocates charges based on usage.

***

## When cost allocation is needed

Cost allocation applies when:

* **A bill covers multiple meters** — for example, one invoice for three electricity meters
* **A bill covers different utilities** — for example, combined electric and gas billing
* **Account-level charges** — charges like "customer fees" that aren't tied to a specific meter

***

## How it works

### Usage-based allocation

When a charge applies to multiple meters of the same type, Nectar splits the cost based on each meter's share of usage:

**Example:** A \$1,000 electricity charge covers two meters:

* Meter A used 6,000 kWh (60% of total)
* Meter B used 4,000 kWh (40% of total)

**Result:**

* Meter A is allocated \$600
* Meter B is allocated \$400

### Equal allocation

When a charge can't be split by usage (like a fixed customer charge), it's divided equally among all meters on the account.

***

## Seeing the allocation

To see how costs were allocated for any bill:

1. Go to **Data Inventory → Bills**
2. Open a bill's detail view
3. Look at the **Line Items** section to see charges and their meter assignments

To see how costs roll up to monthly totals:

1. Go to **Sites** and select a site
2. Use **Inspect Aggregation** to see which bills contribute to each month's costs

**Related docs:** [Bills overview](/platform/data-inventory/bills), [Bill detail](/platform/data-inventory/bill-detail), [Sites overview](/platform/sites/overview)

***

## Account-level charges

Some charges on a bill aren't tied to specific meters:

| Charge type           | How it's allocated             |
| --------------------- | ------------------------------ |
| **Customer charge**   | Split equally among all meters |
| **Paper billing fee** | Split equally among all meters |
| **Energy charge**     | Split by usage proportion      |
| **Demand charge**     | Assigned to the demand meter   |

***

## Currencies

Nectar keeps costs in their original currency. If your portfolio spans multiple countries with different currencies, you'll see separate totals for each currency. This avoids inaccuracies from fluctuating exchange rates.

***

## Good to know

### New charges vs. total charges

Nectar uses **new charges** (this period's costs only) for allocation and analytics — not the total amount due. This avoids double-counting when a previous balance is carried forward.

### Demand charges

[Demand charges](/platform/glossary#demand-charge) (based on peak electricity usage in kW) are allocated specifically to demand meters, not spread across all electricity meters.

### You can adjust allocations

If automatic allocation doesn't match your needs, you can manually assign line items to specific meters in the bill detail view.

***

## Next steps

<CardGroup cols={2}>
  <Card title="Special situations" icon="puzzle-piece" href="/platform/methodology/edge-cases">
    Revised bills, solar credits, and other complexities
  </Card>

  <Card title="Glossary" icon="book" href="/platform/glossary">
    Look up terms like demand charge and line items
  </Card>
</CardGroup>