Create an Allocation Rule with a Formula Component

This example demonstrates how to create an allocation rule with a formula component.

You are the General Accountant for InFusion America Inc. You are tasked with creating an allocation rule with a formula component.

Rules are based on formulas. The formulas use multiple criteria. For example, you can use account balances or statistical amounts to allocate shared revenue or costs across multiple organizational units. You can define complex computations based on variables from various charts of accounts. You can group journal formulas together and run them sequentially to update account balances in a step-by-step process.

Creating an Allocation Rule with a Formula Component

1. Click the Navigator.

2. Click the Journals link from the General Accounting work area to access the Journals work area.

3. Click the Create Allocation Rules link.

4. In the Enterprise Performance Management System Workspace, click the Navigate menu.

5. Select Administer and then Calculation Manager.

6. On the System View tab of Calculation Manager, expand the Essbase tree.

7. Expand the VF_USA_Accounting_Flexfield tree item.

8. Expand the db tree node.

9. Right-click the Rules tree item and select New.

10. In the New Rule dialog box, enter EMEA Overhead Distribution in the Name field and click OK.

    You design a rule by dragging components from the Rule Palette to the Rule Designer flow chart. Each component performs a separate task. You can add Point of View, Allocation, or Formula components to your rule.

    You enter additional rule details on the Properties tab.

11. On the Properties tab, complete the fields, as shown in this table.

    Field	Value
    Name	Reserve for bad debts.
    Description	This formula rule calculates the reserve needed for bad debts.

12. In the Rule Palette area, drag the Point of View object to the Rule Designer area.

13. In the Point of View area, enter POV in the Caption field.

14. Click in the Ledger field.

15. Click the Actions button for the Ledger field.

16. Select Member.

17. In the Member Selector dialog box, expand the Ledger tree.

18. Expand the All Ledgers tree item.

19. Click the EMEA_PC_PL tree item.

20. Click the Select button to move the ledger to the selected panel.

21. Click OK.

22. Repeat the preceding steps to complete the fields, as shown in this table.

    Field	Value
    Company	"[All Company Values].[3888]"
    Cost_Center	"000"
    Program	"[All Program Values].[0000]"
    Location	"[Location]@[0000]"
    Division	"[All Division Values].[0000]"
    Product	"[All Product Values].[0000]"
    Intercompany	"[All Intercompany Values].[0000]"
    Currency	"USD"
    Currency Type	"Total"

23. Click the Actions button for the AccountingPeriod field.

24. Select Variable.

25. In the Select Variable dialog box, select Database in the Category field.

26. Select the Accounting_Period variable and click OK.

27. To define the formula, drag the Formula object from the Rule Palette to the POV loop in the Rule Designer.

28. On the Formula tab, enter Bad Debts Calculation in the Caption field.

29. Click in the Enter formula field.

30. Click the Actions button for the Enter formula field.

31. Select Member.

32. In the Member Selector dialog box, select Scenario in the Dimensions field.

33. Expand the Scenario tree and click the Actual tree node.

34. Click the Select button to move Actual to the Selections panel.

35. Repeat the preceding steps to select the remaining dimensions and members for the formula and complete the fields, as shown in this table.

    Field	Value
    Balance Amount	Ending Balance
    Amount Type	YTD
    Account	1399

36. Click OK.

37. To enter a formula to create 5 percent of total accounts receivable as reserve for bad debts, in the Enter formula field, at the end of the formula you just created, enter *.05*-1.

38. To specify the target members, click in the Enter member name field.

39. Click the Actions button.

40. Select Member.

41. In the Member Selector dialog box, expand the Account tree until the account 75555 appears.

42. Click account 75555.

43. Click the Select button to move the account to the Selections panel.

44. Click OK.

45. To specify offset members, on the Formula tab, enter "13005" in the Offset Member field.

46. Click Save.

47. Click OK.

48. Click the Validate button and then the OK button to acknowledge validation of the rule.

49. To deploy the rule, click the Quick Deploy button in the toolbar.

50. On the Deployment Status dialog box, click OK to acknowledge successful deployment.