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Knowledge and Support - Adaptive Insights

Managing Allocation Rules

Allocation rules automatically distribute values from one or more source levels in the organization to one or more target levels, using a weighting specified in the rule. For example, your company budget may have $5,000 planned for computer parts. That cost can then be allocated among various departments according to an alloca­tion rule so that each department knows how much they may spend on computer parts.

Allocation rules can also be used on expenses. For example, if your company leases a new building to house your IT and Engineering departments, the costs of the new lease and moving the departments might be allocated to those two departments, at a ratio deter­mined by personnel headcount.

The Manage Allocation Rules page displays the Allocation Rules list, which lists all allocation rules in the order they are applied, along with their description, which versions they affect, and their start and end periods.

The icons in the Action column enable you to:

  • Edit a rule by clicking the pencil icon pencil.png

  • Delete a rule by clicking the red X icon redx.png

WARNING: Be sure to select the correct rule to delete. There is no undo for this action. Deleted allocation rules must be re-created, they cannot be restored.

  • Adjust a rule's position by clicking the up or down arrows

The order in which the rules are applied can be important because the output of one rule may affect the input of another. Be sure that the rules are in the correct order to produce the necessary results.

Creating and Editing Allocation Rules

When creating a new rule, fill out at least the required fields (marked with a red *) and click Save. When editing an existing rule, make the necessary changes and click Save. You can click between the Definition and Scope tabs of the rule editor without losing your changes. You can also save a partially-completed allocation rule if all the fields marked as required are filled in, but it will not take effect until all necessary fields are completed.

Allocation Rule Details

Definition Screen

  • Name - The name of the rule. Use a descriptive name, because rule names show up in the Allocation Rules list and also in cell explorer. For example, “Allocation of Hosting Expenses to Sales” is a descriptive name. “Hosting to Sales” is fairly clear in the context of the Manage Allocation Rules page, but less helpful in the context of the cell explorer.

  • Description - This optional field is useful if multiple administrators are handling allocation rules. The description entered here will appear on the Manage Allocation Rules page.

  • Source Levels - The levels from which this rule will allocate out values.

  • Target Levels - The levels into which this rule will allocate in values.

  • Allocate-Out Account - The system account into which the rule will place the offsetting amount being allocated out from each source level. Only system accounts are displayed in this selector.

  • Allocate-In Account - The system account into which the rule will place the amount being allocated into each target level. Only system accounts are displayed in this selector.

  • Allocate-Out Value - The amount to be allocated out from each source level. Choose one of the following:

    • Formula - Use a formula (click the fx button to open the Formula Assistant) to calculate the amount to be allocated out. This may refer to one or more accounts and may contain complex calculations if necessary.

    • Accounts with Attributes - Use attribute values to select a group of accounts. All accounts which match the selected attributes will have their values summed and allocated out from the each source level.

      Best Practice: Use account attribute values to refer to allocation accounts, rather than a formula. This way, any accounts created in the future and marked with the selected attribute value(s) are automatically included in the allocation rule. If you use a formula, any new accounts must be added to it manually. The same applies for accounts being deleted in the future. See Account Attributes.

  • Weight Formula - Describes how the allocated-in values should be distributed among the target levels. The formula given here will be evaluated on each target level and used as a weight for the inbound allocation.

  • Treat weight as currency - Check this box if the value used to determine the weight is a currency amount (e.g., Revenue). When this box is checked, all weight amounts will be converted to the top level currency before weighting. Leave this box unchecked if the weight formula is not a currency amount (e.g., Headcount).

Scope Screen

  • Applies to Version - Use search or scroll to select the versions to which the rule applies. In Adaptive Consolidation, if there are multiple sub-versions of Actuals and Actuals is selected in an allocation rule's scope, the Actuals Version box appears. Source actuals indicates which sub-version or rollup version of actuals contains the source amounts being allocated out. Use the Target actuals drop-down to select the sub-version into which the allocation entries will be stored. This can be any leaf-level sub-version of Actuals. 

  • Rule Period - Select the time period to which the rule applies. This allows you to apply the rule from the beginning to the end of the version it affects, or to only specific months within it.

  • Preserve Dimensions - Choose which, if any, dimensions should be preserved during allocation. If no dimensions are selected, the target levels of the allocation will receive allocate-in amounts that are uncategorized in any dimension.

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