Consider Allocations

Allocations control how costs and revenues are distributed to specified accounts or elements throughout the application. The calculated results are assigned from a source to a destination as the funds flow through the application:

• Allocations can move data based on allocation drivers. For example, you can allocate rent from the corporate cost center to business function cost centers based on the percentage of square foot occupancy.

• Rules define the calculation logic of applications and enable them to reflect the cost assignments within the modeled situations. Rules within rule sets run in the order of their sequence numbers within that rule set.

• There are two types of rules, allocation rules and custom calculation rules. You can define an allocation source, destination, driver basis, and offset for each allocation rule in a rule set.

• You can use reciprocal calculations to allocate data in a circular way among locations with reciprocal relationships. For example, HR allocates expenses to IT and Finance, IT allocates to HR and Finance, and Finance allocates to HR and IT. These groups can all have one-way relationships with other groups that do not allocate costs back to the administrative groups.