13.4.1.1 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 typical 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.