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    Richard Lang
    Allocations - Step downAnswered
    Topic posted June 22, 2017 by Richard LangBronze Medal: 1,250+ Points, last edited January 30, 2019, tagged Allocations 
    265 Views, 4 Comments
    Title:
    Allocations - Step down
    Summary:
    How do you create step down allocations whre the 1st step is a formula followed by allocation?
    Content:

    I have an example of an Allocation that we are trying to do.

     

    We have the following scenario:

     

    There is a cost Centre 1500 which is a Support Function within business.

    All Direct Cost from the income statement assigned to this cost centre for the month needs to be allocated against 3 different Business Units and then the cost split between their cost centre’s.

     

    Please view attachment for more information

    Document:

    Best Comment

    Abhijit

    I think you can use two allocation component itself to do the step down allocations. Apportion your direct costs between three BU's using allocation component and the option allocate evenly. And then in second state using 'Allocated' as scenario dimension member allocate the each BU cost further to its cost centers using using allocation component.

    Having said that if you are using formula component first, in the second step using the scenario dimension member as "Allocated" to take output of first step as input to second step where you plan to use the allocation component.

     

    Thanks,

    Abhijit

     

    Comment

     

    • Abhijit

      I think you can use two allocation component itself to do the step down allocations. Apportion your direct costs between three BU's using allocation component and the option allocate evenly. And then in second state using 'Allocated' as scenario dimension member allocate the each BU cost further to its cost centers using using allocation component.

      Having said that if you are using formula component first, in the second step using the scenario dimension member as "Allocated" to take output of first step as input to second step where you plan to use the allocation component.

       

      Thanks,

      Abhijit

       

      • Richard Lang

        Hi Abhijit,

         

        With regards to allocating to the 3 BU's, they are parent(summary) segments. Can the Allocation manager allocate to Parents?

        Basically we are doing the following

        Take $90.00

        Divide between 3 BU's

        BU1 -$30   (have 3 children)

        BU2-$30 (have 5 children)

        BU3-$30 (has 6 children)

         

        Then taking the $30 and dividing evenly between it child cost centre's for BU-1, so therefore $10 each.

         

    • Abhijit

      You need not have to do parent allocation. You can directly allocate to each cost center $10 each.

       

      Thanks,

      Abhijit