Allocation
Objective
After completing this lesson, you will be able to create a Data Action with a Data Allocation Step. The Operating Margin % KPI shows how profitable the organization is but gives no visibility on the profitability of each product category and product. The reason being that indirect expenses like personnel cost are only recorded for all products together. To determine the profitability of each product category and product we will need to allocate the cost to this level based on a relevant driver.
- Navigate to Main Menu > Data Actions
- Select the Data Action tile under Create.
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Enter the following details in the Data Action Settings:
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Name: Admin_Process1
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Description: Admin Allocation Process 1
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Under the Default Settings section, select the Default Model drop-down and select the underlying model that you have created earlier PnL_Admin_NEW_.
- Save the Data Action by selecting the Save icon > Save.
- Select My Files to ensure you are saving to your local directory, name the Data Action PnL_Admin_Process1 with description PnL_Admin Allocation Process1 and then select Save.
- Under the Add Step section of the toolbar, select the Add Allocation Step icon.
- In the Name field enter Indirect Expenses Allocation and under Write Mode, select the Keep Source checkbox.
- Under the Allocation Rules section, select the drop-down in the first row under Source Dimension.
- Select Accounts > Default Hierarchy (Hierarchy)
- In the second row under Source Dimension, click the menu selection icon.
- In the Select Source Member window, select PL310 Personnel Cost from Available Accounts, then click OK.
- Under the Driver Dimension section, select the drop-down in the first row and choose Accounts > Default Hierarchy
- In the second row under Driver Dimension, click the menu selection icon.
- In the Select Source Member window, select PL010 Product Sales from Available Accounts, then click OK.
- Under the Target Dimension section, select the drop-down in the first row under and choose Products > Default Hierarchy (H1)
- In the second row under Target Dimension, click the menu selection icon.
- In the Select Target Members window, select APL from Available Members, then click OK.
- In the third row under Source Dimension, click the menu selection icon.
- In the Select Source Member window, select PL400 Indirect Expenses, then click OK.
- In the third row under Driver Dimension, click the menu selection icon
- In the Select Driver Member window, select NF010 Nr Units, then click OK.
- In the third row under Target Dimension, click the menu selection icon.
- In the Select Target Members window, select APL, then click OK.
- The Allocation Rules section should now appear like so:
- Save the Data Action by selecting the Save icon > Save.
- Navigate to Main Menu > Data Actions
- Select the Data Action tile under Create.
-
Enter the following details in the Data Action Settings:
-
Name: Admin_Process1
-
Description: Admin Allocation Process 1
-
Under the Default Settings section, select the Default Model drop-down and select the underlying model that you have created earlier PnL_Admin_NEW_.
- Save the Data Action by selecting the Save icon > Save.
- Select My Files to ensure you are saving to your local directory, name the Data Action PnL_Admin_Process1 with description PnL_Admin Allocation Process1 and then select Save.
- Under the Add Step section of the toolbar, select the Add Allocation Step icon.
- In the Name field enter Indirect Expenses Allocation and under Write Mode, select the Keep Source checkbox.
- Under the Allocation Rules section, select the drop-down in the first row under Source Dimension.
- Select Accounts > Default Hierarchy (Hierarchy)
- In the second row under Source Dimension, click the menu selection icon.
- In the Select Source Member window, select PL310 Personnel Cost from Available Accounts, then click OK.
- Under the Driver Dimension section, select the drop-down in the first row and choose Accounts > Default Hierarchy
- In the second row under Driver Dimension, click the menu selection icon.
- In the Select Source Member window, select PL010 Product Sales from Available Accounts, then click OK.
- Under the Target Dimension section, select the drop-down in the first row under and choose Products > Default Hierarchy (H1)
- In the second row under Target Dimension, click the menu selection icon.
- In the Select Target Members window, select APL from Available Members, then click OK.
- In the third row under Source Dimension, click the menu selection icon.
- In the Select Source Member window, select PL400 Indirect Expenses, then click OK.
- In the third row under Driver Dimension, click the menu selection icon
- In the Select Driver Member window, select NF010 Nr Units, then click OK.
- In the third row under Target Dimension, click the menu selection icon.
- In the Select Target Members window, select APL, then click OK.
- The Allocation Rules section should now appear like so:
- Save the Data Action by selecting the Save icon > Save.
