About Management Ledger Allocations

In Oracle Hyperion Profitability and Cost Management, allocations control how costs and revenues are distributed throughout the model to specified accounts or elements.

A driver is used to determine how the funds for each allocation are calculated. The calculated results are assigned from a source to a destination as the funds flow through the model. You use the Manage Rules area to create allocations in Management Ledger Profitability models.

You set up allocations for a single POV by creating rule sets and rules:

• Rule sets are groups of Management Ledger rules that help to organize calculation logic definitions, to calculate similar rules together, and to simplify the definition of manay rules that share common dimension members. Rule sets run in a set order, determined by the rule set sequence number, and may also contain options specific to the execution of rules within that rule set.

• Rules define the calculation logic of Management Ledger models and enable them to reflect the cost assignments within the modeled situations. Rules within rule sets are executed in the order of their sequence numbers within that rule set. There are two types of rules, allocation and custom calculation. You can define allocation source, destination, driver basis, and offset for each allocation rule in a rule set (Creating Management Ledger Allocation Rules). Custom calculation rules contain formulas in MDX format and are primarily used for adjusting data (Creating Management Ledger Custom Calculation Rules).

You can set up defaults, called contexts, for each level of allocations for a POV in Management Ledger Profitability models:

• The Global context enables you to define default definitions for dimensions that will be used in all rule definitions for that POV.

• Rule Set contexts enable you to define default dimension definitions for all rules in a given rule set.

See Creating and Managing Management Ledger Allocations for allocation instructions.