Adapting and Running Allocation Cycles

Objective

After completing this lesson, you will be able to set up allocation cycles

Cycle Configuration and Run Example

At Bike Company, you are setting up new allocation cycles for the new e-scooter business. You will be creating a new cycle with two segments for the two allocations currently planned.

Note

This lesson follows the system scenario you can follow in the exercises. The figures correspond to the expected results for the exercise.

As mentioned, the overhead allocation cycle consists of two segments. Though the receivers for the allocations are the same, different statistical key figure keys form the basis for allocation and you also want to use different secondary cost accounts for the two allocations cases:

The graphic describes the setup of the two segments in the exercise scenario. Two segments are necessary since some of the costs on the sender cost center are allocated using the Number of Phone Connections as a statistical key figure and other costs have to be allocated according to square meters as a statistical key figure.

Below, you can see the details for the 1st segment allocation with the values posted on the sender cost center with two primary cost accounts being allocated to three receivers through a single secondary cost account based on the values of the statistical key figure Number of Phone Connections. The sender will send all debited amounts, so it will end up with a balance of zero for these accounts.

The graphic focuses on the first segment and calculates the credit amount of the sender cost center and the debit amounts of the receiving cost centers taking into account statistical key figure Number of Phone Connections.

Similarly for the second segment, the values posted on the sender cost center with four primary cost accounts are allocated to three receivers through a single secondary cost account based on the values of the statistical key figure Square Meter. The sender will send all debited amounts, so it will end up with a balance of zero for these accounts.

The graphic explains how in the second segment the credit amount of the sender cost center and the debit amounts of the receiving cost centers are calculated using the square meter as a statistical key figure.

The cycle protocol (the top part of the figure below) after running the allocation cycle can now be compared with the calculation results. Here, you can see the receivers’ side of the allocation. You can select the Senders tab to see the counterparts.

The graphic wants you to understand the allocation results shown in the cycle protocol and therefore compares the protocol with the calculated result per segment.

Especially in cases where allocation architectures are complex and analyzing all possible run jobs is challenging, you can use the AI-assisted allocation run results Joule feature. With this feature you can view amounts allocated across the same or different types of objects, such as cost centers. The results can be quickly navigated to the corresponding allocation run job, allowing the user to review the detailed run report of the allocation that took place.

The figure is a screenshot taken in the Manage Allocations app and shows a Joule dialogue. In this dialogue the user asks with several prompts for a specific allocation run and Joule gives out the ID of a specific allocation run at the end.

Adapt an Allocation Cycle

ExerciseStart Exercise

Create the Second Segment for Your Cycle

ExerciseStart Exercise

Allocation Flow

With the Allocation Flow app you can display a visual flow of senders and receivers for the allocation and the respective debit and credit amounts.

The graphic shows that with the help of the Allocation Flow app you can visualize the allocation structure including the sender and receiver data.

Note

As a reminder, the table also shows how the received data of all receiver cost centers were calculated.

The Allocation Flow app offers the following additional features:

If you click one of the sender or receiver cost centers you will additionally see:

  • the Node Details
  • the External Links for navigation to other applications for more details on the data

Finally it’s possible to make one cost center the Center Point, i.e. choosing Make Center Point allows you to view all preceding and succeeding steps in an allocation flow for the selected cost center.

The graphic explains that per cost center you can see Node Details, use External Links and make a cost center the center point.

Run the Allocation Cycle, Check the Results and See the Allocation Flow

ExerciseStart Exercise

Summary

  • Allocation cycles can be set up for new business ventures, like e-scooter production.
  • Segments can allocate costs based on statistical key figures and secondary cost accounts.
  • Cycle protocol compares allocation results for sender and receiver sides.
  • Manage Cycle Run Groups app creates cycle run groups for parallel execution.

Learning

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