Allocation rule examples
This topic provides examples that demonstrate the configuration of various allocation rules.
In this example, you want to create an allocation that allocates 100% of human resource overhead costs pro rata to all departments within Company 1 that have employees. After this allocation is processed by the allocation engine, you do not want any other cost pools to be allocated to the human resource departments included in the cost pool of this given allocation. Department 100020 and 100022 are the HR departments included in the cost pool. Account 100 is your statistical account for full time employees (FTE).
| Option | Description |
|---|---|
| Allocation ID | 400001 (automatically populated by the Allocation Rule Manager) |
| Description | Allocate HR overhead |
| Closed to Subsequent Allocations | True |
| Starting YRMO |
0 |
| Ending YRMO | 204001 |
| Run Order | 1 |
| Percent to Allocate | 100% |
| Allocation Method | 1 (Pro rata) |
| Cost Pool Departments Enable for Allocations | False |
| Cost Pool Data Filter - Department |
DEPT.DEPT IN (100020, 100022) |
| Cost Pool Data Filter - Other Dimensions |
ACCT.RptLvl2 = 'Total Noninterest Expenses' AND DTYPE.DTYPE = 'MTD' |
| Target Department Data Filter | DEPT.Company = 1 |
| Allocation Basis Data Filter |
ACCT.ACCT = 100 AND DTYPE.DTYPE = ‘STAT’ |
| Target ACCT | 99900001 (example account) |
| Offset ACCT | 99900002 (example account) |
In this example, you want to allocate 50% of your credit administration salary and benefit expenses to all consumer lending operations departments as defined by the StandardReportArea ACCT dimension grouping column. There will be other cost allocations from the credit administration departments defined in the cost pool of this department, so you do not want to allocate residual expenses just yet. You do, however, want to allocate a proportional share of these costs back to this department since some lending activities originate from this department that are better allocated based on loan balances.
| Option | Description |
|---|---|
| Allocation ID | 400002 (automatically populated by the Allocation Rule Manager) |
| Description | Allocate consumer loan credit admin salaries |
| Closed to Subsequent Allocations | False |
| Starting YRMO | 0 |
| Ending YRMO | 204001 |
| Run Order | 2 |
| Percent to Allocate | 50% |
| Allocation Method | 2 (Even) |
| Cost Pool Departments Enable for Allocations | True |
| Cost Pool Data Filter - Department | DEPT.DEPT IN (100004, 100012) |
| Cost Pool Data Filter - Other Dimensions | ACCT.RptLvl5 = 'Salaries And Employee Benefits' AND DTYPE.DTYPE = 'MTD' |
| Target Department Data Filter | DEPT.StandardReportArea = 'Consumer' |
| Allocation Basis Data Filter | Leave blank |
| Target ACCT | 99900001 (example account) |
| Offset ACCT | 99900002 (example account) |
Building on example 2, you now want to allocate 100% of residual direct costs from your credit administration departments (including the remaining salary and benefit expense that was not allocated in example 2) plus any allocated costs from other departments, and prevent any subsequent allocations from allocating costs to these credit administration departments. You want to do a pro rata allocation of residual costs to all departments that have an average loan balance > 0.
| Option | Description |
|---|---|
| Allocation ID | 400010 (automatically populated by the Allocation Rule Manager) |
| Description | Allocate residual credit administration costs and close to future allocations |
| Closed to Subsequent Allocations | True |
| Starting YRMO | 0 |
| Ending YRMO | 204001 |
| Run Order | 10 |
| Percent to Allocate | 100% |
| Allocation Method |
Pro rata |
| Cost Pool Departments Enable for Allocations | False |
| Cost Pool Data Filter - Department | DEPT.DEPT IN (100004, 100012) |
| Cost Pool Data Filter - Other Dimensions | ACCT.RptLvl2 = 'Total Noninterest Expenses' AND DTYPE.DTYPE = 'MTD' |
| Target Department Data Filter | DEPT.Company = 1 |
| Allocation Basis Data Filter | ACCT.RptLvl4 = 'Total Net Loans & Leases' |
| Target ACCT | 99900001 (example account) |
| Offset ACCT | 99900002 (example account) |
In this example, you want to allocate ATM maintenance contract charges from your ATM administration department to all standalone ATM units and branches that have ATMs. There is a standard cost of $10.00 per ATM, which you have set up in the AllocationUnitRate table. The organization uses statistical account number 101 to track the number of ATMs that will serve as your volume basis.
| Option | Description |
|---|---|
| Allocation ID | 400011 (automatically populated by the Allocation Rule Manager) |
| Description | Allocate ATM maintenance contract charges |
| Closed to Subsequent Allocations | True |
| Starting YRMO | 0 |
| Ending YRMO | 204001 |
| Run Order | 10 |
| Percent to Allocate | 100% |
| Allocation Method |
3 (Rate Volume) |
| Cost Pool Departments Enable for Allocations | False |
| Cost Pool Data Filter - Department | DEPT.DEPT = 100078 |
| Cost Pool Data Filter - Other Dimensions | Leave blank |
| Target Department Data Filter | DEPT.Company = 1 |
| Allocation Basis Data Filter | ACCT.ACCT = 101 AND DTYPE.DTYPE = 'STAT' |
| Target ACCT | 99900001 (example account) |
| Offset ACCT | 99900002 (example account) |
