1. Administering and Working with Enterprise Profitability and Cost Management
  2. Building and Calculating Models
  3. Creating and Managing Rules
  4. Types of Rules

Types of Rules

In an Enterprise Profitability and Cost Management application, there are two types of rules:

  • Allocation Rules, which define the source and destination of allocated data, which drivers are used to allocate the data, and where offsets are placed to balance accounts.

    Examples of allocation rules include:

    • Rent and Utilities Reassignment, where rent and utility expenses are reassigned from the Corporate cost center to the business function cost centers. A driver based on the square feet of each building used by each cost center is used to apportion the expenses.

    • Product Material Allocation, where the cost of materials is allocated to products in the Bike family. A driver member "BOMRate" that reflects the unique rate of consumption of materials by each product is used in the driver basis.

    • Activity Costing Assignments, where operating expenses for each functional cost center are assigned to Business Sustaining, Customer Sustaining, or Product Sustaining activities based on the activity time split statistic collected at each cost center.

  • Custom Calculation Rules, which contain formulas in an Oracle Essbase MDX format and are primarily used for adjusting data or creating driver values used in subsequent allocation rules.

    An example of a custom calculation rule is a Utilities Expense Adjustment that increases utility expenses at Corporate Headquarters by 10 percent.

Note:

The allocation and custom calculation rule examples above are some of the rules used in the BksML50 sample application that is provided with Enterprise Profitability and Cost Management. You can refer to the examples in the sample application to get ideas of the different types of rules; however, keep in mind that these examples may not necessarily relate to your application.