1. User's Guide
  2. Working with Standard Profitability and Cost Management Applications
  3. Managing Standard Profitability Allocations
  4. Defining Drivers and Formulas for Standard Profitability Models
  5. Driver Formulas
  6. Driver Basis Types

Driver Basis Types

The basis types can be applied to drivers in both the Cost and Revenue layers. A single stage can contain both "Actual Basis" and "Standard Basis" drivers; however, if a driver is changed from one basis driver type to the other, the calculation script for the affected Stage must be regenerated

When defining drivers, you can specify whether you want to use a calculated or assigned rate, using these driver basis types:

Actual Basis Driver Type

The Actual Basis costing uses the "NetCostForAssignment" value on the source to allocate costs downstream. The Actual Basis driver uses the formula:

CostReceivedPriorStage = NetCostForAssignment on the Source * CalculatedDriverValue / TotalDriverValue on the Source

If Driver Data is missing, the results are posted on the Stage Balancing Report to ‘Unassigned Cost’ at the intersection and stage level

Standard Basis Driver Type

In circumstances where seasonal variations or fluctuating account values exist because of the timing differences between accounting data capture and actual usage of resources, you can set a standard rate that allows for consistency of measurements across time periods.

Using the Standard Basis Driver, you set a precalculated standard rate on a driver on the source intersection to allocate the costs downstream. The driver uses the formula:

Standard Rate on the source * Quantity on the assignment

Sources using that driver allocate the product of the Standard Rate on the source, and the Quantity on the assignment to the destination intersections.

Note:

The Standard Basis driver cannot be used with Even or Percentage driver types.

If Standard Basis is selected, "Allow Idle" is automatically activated. Standard basis drivers can be used on intrastage assignments; however, they cannot be used in reciprocal assignments.

When the user selects a Standard Basis Driver, the Rate is entered on the source in the Measures dimension variable StandardCostRate for the Cost Layer and StandardRevenueRate for the Revenue Layer. The StandardCostRate on the source can be done using cost input data entry screens. The "Quantity" portion is calculated based on how the Driver is defined.

The basis types can be applied to drivers in both the Cost and Revenue layers. A single stage can contain both Actual and Standard Basis drivers; however, if a driver is changed from one basis driver type to the other, you must regenerate the calculation script for the affected stage.