How to Allocate Variable Expenses based on Percents of Revenue (Doc ID 1907338.1)

Last updated on JULY 30, 2014

Applies to:

Oracle Financial Services Profitability Management - Version 6.0 and later
Information in this document applies to any platform.
Oracle Financial Services Analytical Applications (OFSAA)

Goal

You would like to write an allocation where it allocates a fixed dollar amount (Variable Expense) that is  maintained at the Sub Line of Business (SLOB) level in a lookup table to all the org units and the accounts in that roll up to that SLOB node level based on a percent to total basis of Revenue.  

Revenue has been set up as a separate Financial Element ID that was calculated at the account level on the CASA instrument table and then rolled up to the org unit level in Ledger Stat.

There are currently around 100 different SLOBs with different Variable Relationship Expense.  The amounts to be allocated do not change frequently, however the allocation amount to each org and account will change each month based on the Revenue amount.

What would be the approach so that only a few allocations are written and not 100 different allocations? 

Solution

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