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. Predefined Driver Formulas

Predefined Driver Formulas

Drivers use predefined formulas to perform common calculations. For each element in the driver formula, you must select the driver measure and location. For predefined drivers, the formula is set in the calculation script.

Note:

The same driver measure cannot be mapped to a different variable in the formula. For example, in the formula "DriverValue"={Rate}*{Quantity}, you cannot select the same measure for both Rate and Volume.

The various driver types and the predefined formulas that they use are described in Table A-9.

Table A-9 Predefined Drivers

Driver Type Driver Formula Available Locations Description
Even Calculated DriverValue = 1.0; None Applies the same value to all measures using this driver.
Simple Calculated DriverValue = {FixedDriverValue};

  • Source

  • Destination

  • Assignment

  • Global

 Applies a preset value for the driver to each measure using the driver.
Percentage Calculated DriverValue = {Percentage};

  • Source

  • Destination

  • Assignment

  • Global

Enter a set percentage of the total value on an assignment destination on the Data Entry page or directly into Oracle Essbase.

For example, if there are three measures, you may allocate 30% to the first assignment, 65% to the second and 5% to the third.

If the percentage total is less than 100% and idle capacity is enabled on the driver, the unallocated remainder is treated as idle capacity.

When using percentage drivers, if the TotalDriverValue (the sum of all driver values) is greater than 100, the driver is treated as a Simple Driver and the allocations are performed. The result is full allocation of source to the destinations based on the ratio of percentage values entered.

Note: If a Percentage driver is used in reciprocal allocations, the TotalDriverValueAfterReciprocals must always be a value less than 100, in order to avoid "Unassigned Costs". Any allocations performed after the reciprocal relationships are resolved converts the Driver to a simple driver.

Simple Weighted Calculated DriverValue = {FixedDriverValue}* {Weight};

  • Source

  • Destination

  • Assignment

  • Global

 Enter a value that you specify to represent the weight, or relative importance, for the task or process.
Variable Calculated DriverValue = {Rate}* {Quantity};

  • Source

  • Destination

  • Assignment

  • Global

 Applies the result of the calculation of the rate and volume to each measure using that driver.
Weighted Variable Calculated DriverValue = {Quantity} * {Rate} * {Weight};

  • Source

  • Destination

  • Assignment

  • Global

 Enter a value that you specify to represent the weight, or relative importance, for the task or process.

For example, the formula might represent the number of technical support calls in a department, weighted by the length or complexity of each type of call.

As another example, the formula could represent the assignment of staff to different tasks — each one weighted slightly differently to distinguish different pay grades or responsibilities.
Fixed and Variable Calculated DriverValue = {FixedDriverValue} + ({Quantity} * {Rate} * {Weight});

  • Source

  • Destination

  • Assignment

  • Global

 Applies the result of the calculation of the quantity and volume, multiplied by the rate and weight for each measure using that driver.
Custom Calculated DriverValue = {Custom Variable};

  • Source

  • Destination

  • Assignment

  • Global

 SeeCustom Driver Formulas for information on creating custom formula types.