CPCRALOC - Allocating Capital Credits

The base product provides a background process (CPCRALOC) that allocates capital credits to members of a cooperative. The result of this process is the creation of new service credit events for capital credit memberships. This background process is typically run after the profits for the previous year are calculated. During that time, this job could be run a number of times for any of the following reasons:

• At the beginning of the allocation process, you may know the total amount to allocate to all members; however, you may estimate the allocation factor that determines the individual amounts that get distributed to the members. You may need to change your estimate and rerun the process until all the individual allocations add up to the desired total amount. To run the job with the estimated allocation factors, indicate that you want events created as pending. When you confirm the correct allocation factor, a final run should be executed with an indication that the events should be created as complete. Every time the process runs, it will first remove any pending events for the same input event type, subcategory and fiscal year. Refer to Creating Pending Events for more information.
• If the cooperative has more than one subcategory, the process must be run for each subcategory. In fact, the above trial-and-error process may need to be followed for each subcategory.

You must provide the service credit event type to use for the new events. This process determines the membership type related to the event type. The process then finds all pending and active memberships for this membership type. To calculate the capital credit allocation, the system finds all applicable bill segments for each service agreement that contributes to the membership.

Capital credit allocations are calculated for a specific fiscal year. The fiscal year is input to the background process and is stamped on any new events created by the process. The system also uses the fiscal year to determine the applicable bill segments for the membership's SAs. It uses the bill segment's accounting date and the accounting calendar to determine the fiscal year for each bill segment.

For each applicable bill segment, the system determines the SQ total and the total sales amount for each segment. To calculate the totals correctly, a characteristic type and value to identify SQ bill lines must be provided to the background process and a characteristic type and value to identify bill lines contributing to the total sales amount must be provided to the background process.

If your membership type indicates subcategories to be used for the events, you must provide a subcategory as input. If you have multiple subcategories for your membership, this process must be run once for each subcategory.

The calculation of the capital credit allocation amount typically uses an allocation factor. This factor is often different for each subcategory. You will probably define a different bill factor for each subcategory and use the appropriate bill factor when submitting the process for each subcategory.

This process also assumes that the allocation factor differs by the customer's revenue class. It assumes that the bill factor's characteristic type is revenue class. Refer to Designing Bill Factors for Credit Allocation for more information. For each service agreement linked to the membership, the appropriate allocation factor is determined based on the revenue class for the SA type.

Capital credits for the input subcategory are calculated as follows:

Fiscal year sales amount - (fiscal year SQ amount * revenue class allocation factor) = Allocation Amount

The calculated amount is compared against a minimum amount, input to the background process. If the calculated amount is less than the minimum, no event is stored for this amount.

After determining the amount, a new service credit event is created for the membership. The event is stamped with the input subcategory, service credit event type and fiscal year.

The FTs for all the bill segments used to determine the allocation amount are linked to the event as contributed to FTs. Refer to Financial Transactions for an Event for more information.