10.2.4 Account-Level Profitability Models

In Management Ledger-level solutions, Account Level solutions are also frequently constructed using a combination of top-down and bottom-up processes. For example, you might employ top-down allocations to distribute Management Ledger-level income and expenses (expenses being more typical) to the instrument level. You can employ bottom-up processes such as account-level funds transfer pricing and/or allocation rules that employ unit costs and volumes to assign income and expenses (expenses being more typical) to instrument level records (low-level, bottom-up income, and expense assignments may also be aggregated to the Management Ledger).