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42 Define Project Control Configuration: Manage Spread Curves

This chapter contains the following:

Calculating Distribution Factors for Spread Curves: Examples

Spread Curves: Explained

Spread curves let you distribute quantity, cost, and revenue amounts automatically across accounting or project accounting periods. You assign a spread curve to each resource class. Planning resources (in the planning resource breakdown structure) inherit the spread curve setting from the associated resource class. You can change the spread curve for the planning resource and for any corresponding task assignments, or budget or forecast lines.

You can create spread curves, use predefined spread curves, or edit them as required. The following is a description of spread curve components (spread points and distribution factors) and predefined spread curves.

Spread Curves, Spread Points, and Distribution Factors

Spread curves contain 10 spread points. Specify distribution factors for any combination of the spread points.

During financial or project planning, spread points are distributed proportionately across periods. For example, if amounts are to be spread across four periods, Oracle Fusion Projects allocates the combined value of 2.5 spread points to each period. That is, the number of spread points divided by the total number of periods: 10/4.

Distribution factors are prorated according to the spread points allocated to each period. For example, if $100 is to be spread across four months for a planning resource that uses an even spread curve (where amounts are distributed evenly), then each period is assigned $25 each. That is, the value of 2.5 spread points (2.5 * 10).

Important

Spread points without values are assigned a zero distribution factor and hence corresponding periods are not allocated any amounts.

Predefined Spread Curves

The following table lists predefined spread curves provided by Oracle Fusion Projects.

Name	Description	Distribution Factors
Even	Ensures a linear distribution of financial or project plan values across periods.	10-10-10-10-10-10-10-10-10-10
Back Loaded	Ensures a back-loaded distribution of financial or project plan values across periods. Assigned amounts increase over succeeding periods.	0-5-10-15-20-25-30-35-40-45
Front Loaded	Ensures a back-loaded distribution of financial or project plan values across periods. Assigned amounts decrease over succeeding periods.	45-40-35-30-25-20-15-10-5-0
S Curve	Ensures an S-shaped distribution of financial or project plan values across periods.	18-10-8-10-15-17-18-17-15-8
Bell Curve	Ensures a bell-shaped distribution of financial or project plan values across periods. Assignment of plan values is highest in the middle periods.	0-4-10-12-14-12-10-4-0-0

Calculating Distribution Factors for Spread Curves: Examples

Distribution factors are prorated according to the spread points allocated to each period.

For example, if $100 is to be spread across four months for a planning resource that uses an even spread curve (where amounts are distributed evenly), then each period is assigned $25 each. That is, 10 spread points spread over 4 months equals 2.5 spread points per period. Each spread point has a distribution factor of 10.

The following is a description of how distribution factors are calculated for full or partial periods.

Calculating Weighted Distribution Factors

To continue our previous example: Say our planning resource was using a back-loaded spread curve rather than an even spread curve.

Note

Default distribution factors for a back-loaded spread curve are as follows: 0-5-10-15-20-25-30-35-40-45. Hence the total distribution for the spread curve is 225.

The following table describes how distribution factors are determined and amount allocated over the four planning periods.

Period	Distribution Factor Calculation	Weighted Distribution Factor	Distribution Percentage	Distributed Amount
1	Distribution factors assigned to spread points 1 and 2 plus half of the distribution factor assigned to spread point 3: 0 + 5 + (0.5 * 10)	10.0	4.44%, (10.0/225)	$4.44
2	Half of distribution factor assigned to spread point 3 plus distribution factors assigned to spread points 4 and 5: (0.5 * 10) + 15 + 20	40.0	17.78%, (40.0/225)	$17.78
3	Distribution factors assigned to spread points 6 and 7 plus half of the distribution factor assigned to spread point 8: 25 + 30 + (0.5 * 35)	72.5	32.22%, (72.5/225)	$32.22
4	Half of distribution factor assigned to spread point 8 plus distribution factors assigned to spread points 9 and 10: (0.5 * 35) + 40 + 45	102.5	45.56%, (102.5/225)	$45.56
	Totals	225	100%	$100

Deriving Spread Point Values and Prorating Distribution Factors for Partial Periods

Transaction start dates associated with a planning resource or task frequently do not coincide with the start or end dates of a period. In such a case, the actual number of planning resource or task transaction days determines how spread points and constituent distribution factors are allocated to full and partial periods.

Assume that the dates for a task assignment cover only 15 days of the first month (a 30-day month) of a four-month planning period. That first month represents the value of 0.5 spread points.

In such a case, the spread point value for each full period is calculated by dividing the total number of spread points (10) by the number of periods corresponding to the transaction (3.5). In other words, spread point values are as follows:

Full period : 10/3.5 = 2.8571
Partial Period: (10/3.5) * 0.5 = 1.4287