Understanding Rate-Based Computation Creation

Based on the assignment type selection, the system displays only those fields that are valid for the assignment type. Consider the following validation rules for rate-based computations:

• The From component must be the Driver Balances table.

• The Based On component is from the Rates table.

• The Apply To component must be a Cost Analyzer balance.

A rate-based computation is a rate that is applied to costs or driver volumes and amounts. You might use a rate-based computation to determine the budgeted per line advertising rate by product line. For example, to calculate the advertising amount, you can retrieve sales order detail lines by product and multiply them by a rate for each product. The rate can be different for each product. You can create a default rate that the system uses if it does not find an exact match with cost object types that matches the From record.