Learn About Allocations

In SAP Analytics Cloud, allocations let you take data from source dimensions and split it among the members of target dimensions based on a driver value. They’re often used to allocate indirect costs in a budget, or to take a value that you planned at a high level and control how it’s broken down to leaf members.

As a planning modeler or reporter, you can work in the Allocations app to set them up, so that planning users can run them in stories or analytic applications.

Common Allocation Use Cases

Allocations are often helpful when budgeting indirect costs such as IT expenses, administrative costs, or building rent. It can be difficult to determine costs for individual products, regions, and departments, for example. It’s often easier to budget a total amount, and then split it up based on driver values like support hours used, headcount, or building square footage.

Allocating IT expenses to departments based on support hours

You can also use them to control how a planned value is disaggregated. For example, if you planned sales discounts for each of your customers, you can split the discounts up among different products based on their gross sales.

Allocating costs in this way can give you more insight into the profitability of a certain product or the cost of a project. It can also influence managers and employees to reduce the indirect costs incurred by their teams.

Roles and permissions for allocation

Allocations are often created by one user and then run by several different users.

To build an allocation process, you’ll need create, read, update, and delete permissions for allocation steps and processes, which are included in the planning admin, modeler, and planner reporter roles.

Then, planning users (including viewers) can run it if they have read and execute permissions for allocation steps, processes, and planning models, as well as access to the model data.

Allocations in data actions

Planning modelers and admins can also add allocation steps to data actions, which have separate permissions. See Adding an Allocation Step for details.

How allocation works

Most dimensions in planning models have an unassigned member with # as the ID. This member holds any value that hasn’t been assigned to a specific leaf member of the dimension. For details, see Learn About Planning Model Data.

A basic allocation step takes the source value that belongs to the unassigned (#) member of the target dimension, and then allocates it to the target members based on the values of a driver account. The unassigned value is usually reduced to zero as a result.

The driver values for each target member are usually broken down by date. For example, if you’re using support hours as a driver value and your model uses quarterly granularity, the allocation will be based on support hours each quarter. You can break the driver values down further by adding more reference dimensions.

Values are allocated separately in Q3 and Q4, instead of averaging support hours over all time periods

Next steps

To get started building a simple allocation process, see Set Up Your First Allocation Process.

To learn how to run allocations in an app or story, see Run Data Actions, Multi Actions, and Allocations.