13.3.1.1.3 Allocation Types

The following list describes the Allocation types:

  • Constant: A Constant Allocation rule creates a simple balanced transaction consisting of one debit and one credit. You may optionally specify either one debit or one credit (at a minimum, you must supply at least one debit or one credit). The Constant rule type only operates against the Management Ledger. For Constant allocation rules, the Operator and Driver process tabs are disabled; specify a fixed amount in the Source tab and debit and/or credit in the Outputs process tab.
  • Static Driver: The Static Driver method enables you to perform simple factor calculations against a set of source balances. Source balances can be drawn from the Management Ledger table, Instrument tables, or Transaction Summary tables. For Static Driver rules, the Driver process tab is disabled. For this kind of rule, define where to get your source data on the Source process tab, a static driver amount on the Operator process tab, and the resulting debits and/or credits on the Outputs process tab.
  • Leaf: Leaf type allocations are used only against the Management Ledger table. They are used to operate between two sets of rows that differ in a single dimension.
  • Field: A Field type allocation is used to multiply two columns within a single row in an instrument table update Allocation rule.
  • Dynamic Driver: Dynamic Driver allocation rules aggregate or distribute balances using dynamic data (business resident driver data) such as headcount, square footage, or instrument-level balances. Dynamic Driver data is not limited to statistics sourced as part of your ETL load to the OFSAA data model. Dynamic Driver data can be “captured” or developed within an Allocation rule. For example, balances by product within each cost center can normally be obtained from your instrument data. You can build allocation rules to aggregate these statistics from your instrument-level data and post them to your Management Ledger for use in subsequent rules, or you can write an allocation that develops this set of driver data by querying your instrument data at runtime. The driver data obtained from your instruments is not limited to balances. Examples of instrument level dynamic drivers you might use in allocation rules include:
    • The number of accounts by product by cost center by year of origination.
    • The number of loan payments processed by the loan processing center by month.
    • ATM transaction counts by region by month.

    Uniform method

    The most common distribution method for the Dynamic Driver type of allocation is:
    • Percent-to-Total
    • Force to 100%
    • Simple method

    Dynamic Driver allocation rules and methods are described in detail in the Driver Process Tab and Output Process Tab sections.

  • Static Driver Table: Static Driver Table allocation rules offer functionality similar to Dynamic Driver allocation rules, but use driver data that is stored in a Profitability Management rule type called Static Table Driver. See Static Table Drivers for how to build and use Static Table Driver rules.
  • Lookup Driver Table: Lookup Driver Table allocation rules support multi-factor allocations at the Instrument level. In addition to supporting dimension-based allocation methods, the Lookup Driver Table rule type also supports allocations based on instrument-level balances, rates, codes, or other instrument-level measures. Typical use cases include allocation of loan loss reserve, economic provision, or risk equity, first as a function of a product, a dimension, but also as a function of instrument level measures such as:
    • Loan-to-value ratio
    • Credit score
    • Loss in event of default
    • Probability of default
    • Remaining term to maturity and so on.

The driver data used in a Lookup Driver Table allocation rule is stored in user-defined lookup tables that are registered into the OFSAA data model. The data from your user-defined lookup table is matched to Instruments tables. The logic governing how your lookup data is matched to Instrument tables is stored in a Lookup Table Driver rule. Lookup Driver Table Allocation rules incorporate Lookup Table Driver rules in the Allocation Specification > Driver process tab.

See Lookup Table Drivers for how to build and use Lookup Table Driver rules.