D.7 Allocation Engine Processing Flow

In Sources and Drivers, the Profitability Management allocation engine can read multiple input currencies. When posting to the Management Ledger table, the engine can output multiple result currencies. When posting to a detailed table, outputs are converted, if necessary, to match the ISO_CURRENCY_CD on each detail record to be updated.

Figure D-2 Allocation Engine Processing Flow for Multi-currency Allocations

The preceding diagram illustrates the basic allocation engine processing flow for multi-currency allocations. Input data for monetary balances are converted to the functional currency. By having all inputs in the same currency, calculations, such as percent distribution, are created on an equal basis. After converting all input data to functional currency, the allocation calculations are performed. The output results of the allocation can be in any currency. The results of calculations are converted from functional currency to the appropriate debit or credit currency for that allocation. As noted earlier you may direct the output currency to your choice for Management Ledger outputs; for detail tables, outputs always match the currency of the records to be updated.

Input rows to allocation rules are checked to determine whether currency translation is necessary. The checks for whether an item needs translation vary between the Management Ledger table and detail tables (Instrument and Transaction Summary tables).