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Allocation Function

Context

This function distributes key figures from the sender to the receiver using one or two specified distribution bases, which are the driver(s) for this allocation.

The sender key figures represent the values to be allocated by the allocation function.

The sender characteristics are used to identify the corresponding receiver characteristics by name and value matching.

The receiver key figures represent possible distribution bases. All sender key figures will be automatically added to the receiver, if not already available.

If the sender characteristic values have no matching counterpart on the receiver side, unassigned item management can be used.

Prerequisites

As a prerequisite, you must have configured the functions from which you get the sender and receiver data. Typically these are view functions.

Roadmap Step 1

  1. On configuration page step 1, choose the Sender Type from the dropdown list.

  2. Optional: Choose Sender Rule from the dropdown list.

    a. If you select Fixed Rate in step two, enter the percentage in the Fixed Rate field.

  3. Optional: To change the rule sets sequence, use Up and/or Down.

  4. Select the rule set whose fields you want to maintain and choose step 2.

  5. To save the changes, choose Save.

Roadmap Step 2

  1. On the configuration page step 2, choose theInput Function from the dropdown list on the left side of the header.

  2. Optional: Choose View Type from the dropdown list on the right side of the header (the default setting is Projection).

  3. For basic details about configuring views, see View Function.

  4. To generate, choose Generate.

  5. For a preview, choose Test.

  6. To save the changes, choose Save.

Roadmap Step 3

  1. On the configuration page step 3, choose the Input Function from the dropdown list on the left side of the header.

  2. Optional: Choose View Type from the dropdown list on the right side of the header (the default setting is Projection).

  3. For basic details about configuring views, see View Function.

  4. Optional: To generate, choose Generate.

  5. Optional: For a preview, choose Test.

  6. To save the changes, choose Save.

Roadmap Step 4

  1. On the configuration page step 4, choose the Receiver Rule from the dropdown list.

    a. If you select Even, skip the next three steps.

  2. Choose Distribution Base 1 from the input field with input help.

  3. Optional: Choose Distribution Base 2 from the input field with input help.

  4. Optional: Choose Handle Negative Tracing Factors from the dropdown list.

  5. To generate, choose Generate.

  6. Optional: For a preview, choose Test.

  7. To save the changes, choose Save.

Roadmap Step 5

  1. On the configuration page step 5, choose the Rule Set from the dropdown list.

  2. Optional: To update the list of unassigned items, choose Check.

  3. Optional: To generate, choose Generate.

  4. To apply the selected Rule Set, choose Run.

  5. Optional: To save the changes, choose Save.

Example: Indirect Cost Allocation using Summary Level

Roadmap Step 1: Settings

Sender Type

Indirect

Sender Rule

Key Figure

Fixed Rate

0

Receiver Summary Level

FieldSet1

>> Fields of FieldSet1

  1. Product

  2. Channel

  3. Customer

Roadmap Step 2: Sender (data)

Cost center

IT COST

CC01

100,000.00

Roadmap Step 3: Receiver (data)

Contract

Coverage

Product

Channel

Customer

Lowest Level DB

Summary Level DB

20150000

6981

224

92H2

DD

60

3

20150000

6982

224

92H2

DD

40

3

20150003

6985

238

CXH0

DD

55

5

20150004

6986

238

CXH0

DD

45

5

20150007

6989

238

92H2

AA

20

2

20150008

6990

238

92H2

AA

80

2

Roadmap Step 4: Tracing Factor

Receiver Rule

Cost Driver

Distribution Base 1

Low Level Distribution

Distribution Base 2

Summary Level Distribution

Handle Negative trace Factor

No (Negative unchanged)

Indirect Allocation result after Generation

Contract

Coverage

Product

Channel

Customer

IT COST

20150000

6981

224

92H2

DD

18,000.00

20150000

6982

224

92H2

DD

12,000.00

20150003

6985

238

CXH0

DD

27,500.00

20150004

6986

238

CXH0

DD

22,500.00

20150007

6989

238

92H2

AA

4,000.00

20150008

6990

238

92H2

AA

16,000.00

Explanation of Indirect Cost Allocation on Summary Level:

1. The receivers records will be grouped by the Summary Level Fields used in Roadmap Step 1

Contract

Coverage

Product

Channel

Customer

Lowest Level DB

Summary Level DB

20150000

6981

224

92H2

DD

60

3

20150000

6982

224

92H2

DD

40

3

20150003

6985

238

CXH0

DD

55

5

20150004

6986

238

CXH0

DD

45

5

20150007

6989

238

92H2

AA

20

2

20150008

6990

238

92H2

AA

80

2

After step 1: for summary level there will be 3 allocation groups

Product

Channel

Customer

Summary Level DB

Additional Information

224

92H2

DD

3

A

238

CXH0

DD

5

B

238

92H2

AA

2

C

2. Allocation on Summary Level (not the expected Result after Allocation)

Part of the Receiver’s data

Summary level

Additional Information

Product

Channel

Customer

Summary Level DB

Distribution %

ALLOCATED IT COST

-

224

92H2

DD

3

30.00%

30,000.00

30% of the IT Cost (100, 000)

238

CXH0

DD

5

50.00%

50,000.00

50% of the IT Cost (100,000)

238

92H2

AA

2

20.00%

20,000.00

20% of the IT COST (100, 000)

3. Allocation on lowest level based on the summary level ALLOCATED IT COST

Part of the Receiver’s data

Lowest level

Additional Information

Product

Channel

Customer

Lowest Level DB

Distribution %

ALLOCATED IT COST

-

224

92H2

DD

60

60.00%

18,000.00

60% of Group A IT COST (30, 000 * 60%)

224

92H2

DD

40

40.00%

12,000.00

40% of Group A IT COST (30, 000 * 40%)

238

CXH0

DD

55

55.00%

27,500.00

55% of Group B IT COST (50, 000 * 55%)

238

CXH0

DD

45

45.00%

22,500.00

45% of Group B IT COST (50, 000 * 45%)

238

92H2

AA

20

20.00%

4,000.00

20% of Group C IT COST (20, 000 * 20%)

238

92H2

AA

80

80.00%

16,000.00

80% of Group C IT COST (20, 000 * 80%)

4. Below is the final Indirect Allocation Result - the sum of all IT COST records should be 100,000

Contract

Coverage

Product

Channel

Customer

IT COST

20150000

6981

224

92H2

DD

18,000.00

20150000

6982

224

92H2

DD

12,000.00

20150003

6985

238

CXH0

DD

27,500.00

20150004

6986

238

CXH0

DD

22,500.00

20150007

6989

238

92H2

AA

4,000.00

20150008

6990

238

92H2

AA

16,000.00

Example: Direct Cost Allocation

Roadmap Step 1: Settings

Sender Type

Direct

Sender Rule

Key Figure

Roadmap Step 2: Sender (data)

Product

Channel

Customer

Premium

-

92H2

AA

300.00

-

92H2

DD

200.00

224

92H2

DD

400.00

238

-

AA

400.00

238

92H2

AA

300.00

238

CXH0

DD

1,000.00

Roadmap Step 3: Receiver (data)

Contract

Coverage

Product

Channel

Customer

Lowest Level DB

20150000

6981

224

92H2

DD

3

20150001

6983

224

92H2

DD

7

20150002

6984

238

CXH0

DD

50

20150005

6987

238

CXH0

DD

50

20150006

6988

238

92H2

AA

10

20150009

6990

238

92H2

AA

40

Roadmap Step 4: Tracing Factor

Receiver Rule

Cost Driver

Distribution Base 1

Lowest Level DB

Distribution Base 2

-

Handle Neg Trac F

No (negative unchanged)

Direct Allocation result after Generation

Contract

Coverage

Product

Channel

Customer

Lowest Level DB

Premium

20150000

6981

224

92H2

DD

3

180.00

20150001

6983

224

92H2

DD

7

420.00

20150002

6984

238

CXH0

DD

50

500.00

20150005

6987

238

CXH0

DD

50

500.00

20150006

6988

238

92H2

AA

10

200.00

20150009

6990

238

92H2

AA

40

800.00

Explanation of Direct Cost Allocation:

  1. Every sender record will be marked for allocation by considering the characteristic combinations

    Example 1 - Sender Record 1 will be marked for allocation to Channel and Customer fields with records 92H2 and AA

    Product

    Channel

    Customer

    Premium

    Additional Information

    -

    92H2

    AA

    300.00

    Sender Record 1

    -

    92H2

    DD

    200.00

    Sender Record 2

    224

    92H2

    DD

    400.00

    Sender Record 3

    238

    -

    AA

    400.00

    Sender Record 4

    238

    92H2

    AA

    300.00

    Sender Record 5

    238

    CXH0

    DD

    1,000.00

    Sender Record 6

    Receiver

    Contract

    Coverage

    Product

    Channel

    Customer

    Lowest Level DB

    Additional Information

    20150000

    6981

    224

    92H2

    DD

    3

    -

    20150001

    6983

    224

    92H2

    DD

    7

    -

    20150002

    6984

    238

    CXH0

    DD

    50

    -

    20150005

    6987

    238

    CXH0

    DD

    50

    -

    20150006

    6988

    238

    92H2

    AA

    10

    Sender Record 1 will be allocated here

    20150009

    6990

    238

    92H2

    AA

    40

    Sender Record 1 will be allocated here

    Example 2 - Sender Record 3 will be marked for allocation to Product, Channel and Customer fields with records 224, 92H2 and DD

    Product

    Channel

    Customer

    Premium

    Additional Information

    -

    92H2

    AA

    300.00

    Sender Record 1

    -

    92H2

    DD

    200.00

    Sender Record 2

    224

    92H2

    DD

    400.00

    Sender Record 3

    238

    -

    AA

    400.00

    Sender Record 4

    238

    92H2

    AA

    300.00

    Sender Record 5

    238

    CXH0

    DD

    1,000.00

    Sender Record 6

    Receiver

    Contract

    Coverage

    Product

    Channel

    Customer

    Lowest Level DB

    Additional Information

    20150000

    6981

    224

    92H2

    DD

    3

    Sender Record 3 will be allocated here

    20150001

    6983

    224

    92H2

    DD

    7

    Sender Record 3 will be allocated here

    20150002

    6984

    238

    CXH0

    DD

    50

    -

    20150005

    6987

    238

    CXH0

    DD

    50

    -

    20150006

    6988

    238

    92H2

    AA

    10

    -

    20150009

    6990

    238

    92H2

    AA

    40

    -

    This will be done for all records until everything has been marked for allocation.

    Sender

    Product

    Channel

    Customer

    Premium

    Additional Information

    -

    92H2

    AA

    300.00

    will be allocated to group C

    -

    92H2

    DD

    200.00

    will be allocated to group A

    224

    92H2

    DD

    400.00

    will be allocated to group A

    238

    -

    AA

    400.00

    will be allocated to group C

    238

    92H2

    AA

    300.00

    will be allocated to group C

    238

    CXH0

    DD

    1,000.00

    will be allocated to group B

    Receiver

    Contract

    Coverage

    Product

    Channel

    Customer

    Lowest Level DB

    Additional Information

    20150000

    6981

    224

    92H2

    DD

    3

    will be allocated to group A

    20150001

    6983

    224

    92H2

    DD

    7

    will be allocated to group A

    20150002

    6984

    238

    CXH0

    DD

    50

    will be allocated to group B

    20150005

    6987

    238

    CXH0

    DD

    50

    will be allocated to group B

    20150006

    6988

    238

    92H2

    AA

    10

    will be allocated to group C

    20150009

    6990

    238

    92H2

    AA

    40

    will be allocated to group C

  2. Every sender record will be allocated taking into account the lowest level distribution of the receiver in this scenario; the key field "Lowest Level DB" is the Distribution Base 1 for the set in roadmap step 4 (below you find the explanation how to compute for the lowest level distribution base percentage)

    Contract

    Coverage

    Product

    Channel

    Customer

    Lowest Level DB

    Additional Information

    20150000

    6981

    224

    92H2

    DD

    3

    30 % of 10

    20150001

    6983

    224

    92H2

    DD

    7

    70 % of 10

    20150002

    6984

    238

    CXH0

    DD

    50

    50 % of 100

    20150005

    6987

    238

    CXH0

    DD

    50

    50 % of 100

    20150006

    6988

    238

    92H2

    AA

    10

    20 % of 50

    20150009

    6990

    238

    92H2

    AA

    40

    80 % of 50

  3. Every sender record will be allocated taking into account the lowest level distribution of the receiver in this scenario; the key field "Lowest Level DB" the Distribution Base 1 for the set in roadmap step 4 (below you find the explanation how to allocate the senders’ premium records to the sender)

    Product

    Channel

    Customer

    Premium

    Additional Information

    -

    92H2

    AA

    300.00

    will be allocated to group C

    -

    92H2

    DD

    200.00

    will be allocated to group A

    224

    92H2

    DD

    400.00

    will be allocated to group A

    238

    -

    AA

    400.00

    will be allocated to group C

    238

    92H2

    AA

    300.00

    will be allocated to group C

    238

    CXH0

    DD

    1,000.00

    will be allocated to group B

    Add the premiums per group, then multiply by the percentage from step 2 (explanation 2)

    Contract

    Coverage

    Product

    Channel

    Customer

    Lowest Level DB

    Premium

    Additional Information

    20150000

    6981

    224

    92H2

    DD

    3

    180.00

    30% of the added A premium records

    20150001

    6983

    224

    92H2

    DD

    7

    420.00

    70% of the added A premium records

    20150002

    6984

    238

    CXH0

    DD

    50

    500.00

    50% of the added B premium records

    20150005

    6987

    238

    CXH0

    DD

    50

    500.00

    50% of the added B premium records

    20150006

    6988

    238

    92H2

    AA

    10

    200.00

    20% of the added C premium records

    20150009

    6990

    238

    92H2

    AA

    40

    800.00

    80% of the added C premium records

  4. Below is the final Direct Allocation Result - the sum of all Premium records should be 2,600 (180 / 420 / 500 / 500 / 200 / 800)

    Contract

    Coverage

    Product

    Channel

    Customer

    Premium

    20150000

    6981

    224

    92H2

    DD

    180.00

    20150001

    6983

    224

    92H2

    DD

    420.00

    20150002

    6984

    238

    CXH0

    DD

    500.00

    20150005

    6987

    238

    CXH0

    DD

    500.00

    20150006

    6988

    238

    92H2

    AA

    200.00

    20150009

    6990

    238

    92H2

    AA

    800.00

    Note Note

    the final result of every allocation contains only the characteristic of the receiver and the allocated amounts of the sender

Example: Direct Cost Allocation with unassigned Items

Allocation-Direct-AD

Prerequisites: Two views with following data

Sender

PRODUCT

CHANNEL

CUSTOMER

PREMIUM

PR_A

CH_A

CU_A

12

PR_X

CH_B

CU_A

24

PR_X

CH_X

CU_B

48

PR_X

CH_X

CU_X

36

Receiver

PRODUCT

CHANNEL

COVERAGE

CUSTOMER

NR OF TRADINGS

PR_A

CH_A

COV_1

CU_A

1

PR_B

CH_B

COV_2

CU_A

1

PR_A

CH_B

COV_3

CU_B

1

PR_B

CH_A

COV_4

CU_C

1

Roadmap Step 1 Settings

Sender Type

Direct

Sender Rule

Key Figure

Fixed rate

-

Receiver Summary Level

-

Roadmap Step 2: Sender (data)

PRODUCT

CHANNEL

CUSTOMER

PREMIUM

Additional Information

PR_A

CH_A

CU_A

12

Sender Record 1

PR_X

CH_B

CU_A

24

Sender Record 2

PR_X

CH_X

CU_B

48

Sender Record 3

PR_X

CH_X

CU_X

36

Sender Record 4

Roadmap Step 3: Receiver (data)

PRODUCT

CHANNEL

CUSTOMER

COVERAGE

NR OF TRADINGS

PR_A

CH_A

CU_A

COV_1

1

PR_B

CH_B

CU_A

COV_2

1

PR_A

CH_B

CU_B

COV_3

1

PR_B

CH_A

CU_C

COV_4

1

Roadmap Step 4: Tracing Factor

Receiver Rule

Cost Driver

Distribution Base 1

NR OF TRADINGS

Distribution Base 2

--

Handle Negative Trace Factor

No

Result

PRODUCT

CHANNEL

COVERAGE

CUSTOMER

PREMIUM

Additional Information

PR_A

CH_A

COV_1

CU_A

12

Sender Record 1 will be allocated here

PR_B

CH_B

COV_2

CU_A

0

No Sender to Receiver Allocation

PR_A

CH_B

COV_3

CU_B

0

No Sender to Receiver Allocation

PR_B

CH_A

COV_4

CU_C

0

No Sender to Receiver Allocation

Message Log

Message Type

Message

Business Function

Business Function ID

Status

Function=... in Environment=…. executed, output records=4

Allocation-Direct-AD

...

Warning

Function=... in Environment=… has 3 unassigned items

Allocation-Direct-AD

...

Status

Function=... in Environment=…. executed, output records=4

Base View

...

Status

Function=... in Environment=…. executed, output records=4

Receiver

...

Status

Function=... in Environment=…. executed, output records=8

Model ...

...

Status

Function=... in Environment=…. executed, output records=4

Base View

...

Status

Function=... in Environment=…. executed, output records=4

Sender

...

Status

Function=... in Environment=…. executed, output records=8

Model ...

...

Unassigned Items

Unassigned Sum

Field 1 Value

Field 2 Value

Field 3 Value

Field 1 to 3 represents Characteristics Fields

48

PR_X

CU_B

CH_X

Sender Record 3 not allocated

36

PR_X

CU_X

CH_X

Sender Record 4 not allocated

24

PR_X

CU_A

CH_B

Sender Record 2 not allocated

Use the Management of Unassigned Items function to create the following rule set to adapt and handle these unassigned items:

Roadmap Step 1: Rule Sets

Name:

RS_AD_1

Set a name for the Rule Set

Roadmap Step 2: Priorities

Field 1

Field 2

CHANNEL

CUSTOMER

Filling in Field names which are considered for the allocation using above Rule Set

Establish the created rule set of the Management of Unassigned Items function into “Allocation Function” (Step 5).

Settings Step 5 of Allocation Function

Rule Set: RS_AD_1

Results after Re-run

PRODUCT

CHANNEL

COVERAGE

CUSTOMER

PREMIUM

Additional Information

PR_A

CH_A

COV_1

CU_A

12

Sender Record 1 will be allocated here

PR_B

CH_B

COV_2

CU_A

24

Sender Record 2 will be allocated here

PR_A

CH_B

COV_3

CU_B

0

No Sender to Receiver Allocation

PR_B

CH_A

COV_4

CU_C

0

No Sender to Receiver Allocation

Remaining Unassigned Items

Unassigned Sum

Field 1 Value

Field 2 Value

Field 3 Value

48

PR_X

CU_B

CH_X

36

PR_X

CU_X

CH_X

Use the Management of Unassigned Items function to create more Rule Sets …

For information about “Transmittance” of the last remaining unassigned Items (this will finish this example), see the Management of Unassigned Items function document. Go to roadmap step 3 of this document.