Creating Custom Calculation Rules

Rules form the core of a Profitability and Cost Management application. There are two types: allocation rules and custom calculation rules. Creating Allocation Rules with the Manage Rules Screen describes how to create allocation rules. They determine how allocated data flows and how drivers determine allocation amounts. This section describes how to create custom calculation rules.

Unlike allocation rules, custom calculation rules do not have a defined source and destination with options for defining a driver basis and accounting offset. Instead, custom calculation rules enable users to define calculations to be performed in a certain region of the database with results posted to a specific member. Custom calculation rules are used primarily for adjusting existing data to create a scenario, creating custom driver values for use in other allocation rules, or to accommodate reporting requirements. Other uses include clearing data from custom ranges, developing data sets, anonymizing data, and complex standard rate application.

Custom calculation rules have the following components that correspond to the tabs in the Rule Definition area:

• Description — Rule name and number, text description, and rule-level options (described later in this topic)

• Target — The target range in the database that the rule will affect

• Formula — The member to which results of the calculation are written and the mathematical expression of the calculation (Defining the Formula for Custom Calculation Rules)

• Rule Context — Enables you to view any Global or Rule Set contexts defined for the custom calculation rule (Viewing Contexts for Custom Calculation Rules

Like allocation rules, custom calculation rules belong to rule sets, have sequence numbers, inherit contexts, can be activated or deactivated with the Enabled setting, and have the same rule set execution options (serial, parallel, iterative). Custom calculation rules can be copied and deleted in the same way as allocation rules (Managing Rules with the Manage Rules Screen).

Complete this learning path tutorial to learn more about creating custom calculation rules with the Manage Rules screen:

Creating Custom Calculation Rules in Profitability and Cost Management

To define custom calculation rules for one POV in an application:

1. On the Home page, click and then select Rules.
2. In the Rules screen (Figure 8-2), enter the year and period for a valid POV, and then click (Refresh).
3. In the Rule Sets area, select a rule set.
4. Do one of the following:

   • In the Rules area, click , and then select Custom Calculation, or

   • Select Actions, then select Create Rule, and then select Create Custom Rule.

     The Description tab of the Rule Definition area is displayed (Figure 8-14)

   Figure 8-14 The Description Tab of the Custom Calculation Rule Definition Area

   
   
   
5. Enter a name for the rule.
6. Optional: In the Description box, enter a description of the rule set.
7. Optional: Select Enabled to indicate that the rule is active when the calculation is performed.
8. Enter a Sequence number to determine the order in which the rule runs within the rule set.

   Rules with the same sequence number will run at the same time if parallel calculation is enabled for the rule set and the computer hardware supports it.

9. If selected, Use Rule Set Context indicates that the rule set context is applied to the current rule, if one was defined.

   If a global context has been enabled for the rule set, it will also be applied.

10. When the rule set definition is complete, click Save, .

Tip:

The next step is to define a calculation target for the rule ( Defining a Target for Custom Calculation Rules).

To edit and delete rules, see Managing Rules with the Manage Rules Screen.