Profitability and Cost Management

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Topic

    John Sturgeon
    Rule Writing - driver basis tipsAnswered
    Topic posted October 4, 2018 by John SturgeonGreen Ribbon: 100+ Points, tagged ABC, ABM, Activity Based Costing, Activity Based Management, Allocation, Cost Management, Costing, Profitability, Profitability Analysis 
    133 Views, 2 Comments
    Title:
    Rule Writing - driver basis tips
    Summary:
    Looking for best practices in configuring the driver basis tab of PCMCS rules
    Content:

    Is anyone aware of good resources for how to best configure the "driver basis" tab of rules within PCMCS? For example, what are the considerations when 1) selecting a member for a given dimension, or 2) choosing not to select a member?

    For example, I have four business units in my model; BU1, BU2, BU3, and BU4. I want to push the costs from BU4 into BU1, BU2, and BU3, proportionally to the existing costs in BU1, BU2, BU3. 

    I'm comfortable with the source and destination tabs, but would love some guidance on the driver basis tab.

    Best Comment

    Don Bean

    The driver basis tab tells the rule where to look for driver values *in relation to the destination cell*.

    Consider this:  during execution the allocation rule is traversing a wide range of potential destinations looking for driver values - at each potential destination it will use the reference pointers in the driver basis tab to *alter its view* to find a driver value.

    By default (no member selections on the driver basis tab) the reference point is the destination itself, when you make a member selection it alters the reference from the destination cell to one with the address specified.  So, if you make an entry in the account dimension (for example) pointing to an statistical account, for every destination visited by the rule the rule will alter its reference to look for a driver value in the account specified.

    Certain other defaults are also in play;  POV members are defaulted to the POV being executed, defaults for Balance and Rule dimensions are 'Input' and 'NoRule'.

     

    Comment

     

    • Don Bean

      The driver basis tab tells the rule where to look for driver values *in relation to the destination cell*.

      Consider this:  during execution the allocation rule is traversing a wide range of potential destinations looking for driver values - at each potential destination it will use the reference pointers in the driver basis tab to *alter its view* to find a driver value.

      By default (no member selections on the driver basis tab) the reference point is the destination itself, when you make a member selection it alters the reference from the destination cell to one with the address specified.  So, if you make an entry in the account dimension (for example) pointing to an statistical account, for every destination visited by the rule the rule will alter its reference to look for a driver value in the account specified.

      Certain other defaults are also in play;  POV members are defaulted to the POV being executed, defaults for Balance and Rule dimensions are 'Input' and 'NoRule'.