3.8.2.1.4.1.1 Examples of Usage of the Factor Operator

Instrument-level Rate Times Balance Allocations commonly use the “Both” type Factor Operator in which the first-factor operator is “times <accrual-basis> macro” and the second-factor operator is “divided by 100” when posting to a monthly income or expense balance. If you were to choose a 30/360 accrual basis factor, you could equally well specify your factor operator as “divide by 1200”.

Instrument-level Rate Times Balance Allocations can also utilize actual instrument-level accrual bases instead of applying the same Accrual Basis to every calculation.

In a Percent Distribution Allocation such as “distribute all Human Resource expense to all Cost Centers as a function of headcount”, you may sometimes want to distribute less than 100% of total expense. In this example, your Source Data would be “all Human Resource Expense”, your Driver Data would be “headcount by Cost Center” on a percent-to-total basis, and your Factor Operator would be whatever percentage of the total expense you are choosing to allocate.