Managing Allocation Methods

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Table of Contents

Adding Allocation Methods

Using Weights

Using Percent

Using Dimension

Editing Allocation Methods

Deleting Allocation Methods

Allocation Methods are preset allocations, or ways of dividing up the amount of a line item between Dimensions (departments, account numbers, offices, programs, etc.). You can create Allocation Methods in the Allocation Methods application of the Automation module, and then apply them to line items in Operating Expenses, Revenue, and Personnel.

This document shows you, a Planning Maestro user, how to add, edit, and delete Allocation Methods.

Example.png Example: You could create a standard Allocation Method that divides expenses evenly between the departments of your company, or a specialized Allocation Method that divides the cost of office rent based on the square footage of each office.

Locating Allocation Methods

To manage Allocation Methodsopen the Automation module and select Allocation Methods.

The Allocation Methods page opens. Use this page to add, edit, and delete Allocation Methods.

Adding Allocation Methods

Step 1: To add a new Allocation Method, on the Allocation Methods page, click + New Allocation Method.

A New Allocation pane opens on the right.

Step 2: Enter the following information in the fields provided:

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Name – Enter a name that you and other users can easily understand in this field.

Description (Optional) – Enter a description for this Allocation Method in this field.

Allocation Dimension Member Selection – In this section, choose which Dimension Members (departments, versions, account numbers, programs, offices, etc.) are included in this Allocation Method. To select Dimension Members, select Click to Edit.

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When you select Click to Edit under Allocation Dimension Member Selection, an Allocation Dimension Member Selection popup appears.

Step 3: Click on the None dropdown menu at the top and select the Dimension you want to use for this Allocation Method.

Example.png Example: In this example, the Allocation Method evenly divides an amount across all entities (departments). You select Entity from the dropdown menu, and then select all entities from the table below.

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Step 4: The Members of the Dimension appear below. Select each Member you want to be a part of this Allocation Method. You can also click on the first Dimension Member (the “top node”) to select all Members.

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"Top node" selected:

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If this Dimension has too many Members to scroll through easily, select a Hierarchy from the dropdown menu. The Hierarchy gives you an organized view from which to select Members.

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You can also add Members of other Dimensions to this Allocation Method. To add Members from another Dimension, click Add Dimension.

Example.png Example: You could add three offices from your Office Dimension and then one warehouse from your Warehouse Dimension.

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A new section appears on the right. Click on the None dropdown menu and select the second Dimension.

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The Members of this second Dimension appear below. Select the Members you want to include in this Allocation Method. Click Add Dimension to add as many more Dimensions as you need.

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After selecting all the Dimension Members you want to add to this Allocation Method, click Add.

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The Dimension Members appear below. Click Apply.

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After you select the Dimension Members to include in this Allocation Method, use the rest of this pane to choose how you want to assign or divide an amount between these Members.

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  • Allocation Basis – Click on this dropdown menu and select one of the following options:

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  • Weights/Percent – Select this option to divide an amount by amounts or percent (for example, 10% of an amount to each of the 10 departments in a company).
  • Dimension – Select this option to divide an amount for one Dimension based on another Dimension.

Example.png Example: You can create an allocation that divides the cost of office rent between offices by the square footage of each office. In this scenario, you would select the Office Dimension as the Allocation Dimension Member in the top section, and then allocate based on Account Number (see below).

Using Weights

If you choose to use Weights/Percent as your Allocation Basis, use the fields below to divide or distribute the allocation.

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Use Weights – To use weights to create this allocation (a set of relative values you can increase or decrease to spread out the amount), leave this toggle switch in the ON position.

Enter the “weight” for each Dimension Member in the Weights column of the table. The actual amounts do not matter; Planning Maestro adds up the weights and assigns the amount based on each weight’s portion of the total.

Example.png Example:

  • To divide an amount evenly between five Dimension Members, you could enter 1, 1, 1, 1, 1.
  • To divide an amount between five Members so that one Member gets a double portion, you could enter 1, 2, 1, 1, 1.

Using Percent

To remove weights from the table and just use percentages to create this allocation, click on this toggle switch to turn it to the OFF position.

The Weights column disappears from the table. You can set up the allocation by entering percentages in the Percent column.

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Whether you use Weights or Percentages, the bar graph on the right shows you how the amount is divided between these Members.

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Using Dimension as the Allocation Basis

If you choose to use Dimension as your Allocation Basis, use the fields below to select a Dimension and Dimension Members on which to base this allocation.

Example.png Example: Your company has three offices. Each office has a certain square footage. You create an allocation method to allocate the cost of rent between the three offices based on each office’s square footage.

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Step 1: Under Allocation Basis Dimension, select click on the dropdown menu and select the Dimension which contains the information that determines how much of an amount each main Dimension Member gets.

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Usually, the Allocation Basis Dimension is your Account Number Dimension so that you can use information from one of your statistical accounts.

Example.png Example: When you create an Allocation Method for office rent based on square footage, you use the Account Number Dimension as the Allocation Basis Dimension so you can use the data from your Square Footage statistical account.

Warning.png Please Note: You cannot use the same Dimension as the Allocation Dimension and the Allocation Basis Dimension. For example, in the screenshot above, you cannot use Account Number as the main Dimension you are using to allocate and as the Allocation Basis.

Step 2: Under Allocation Basis Dimension Member Selection, select Click to Edit.

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Step 3: Select the Dimension Member(s) which determine how much of an amount each of these Dimension Members gets (often a statistical GL Account) and click Add.

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 The Allocation Basis Dimension Member(s) appear below.

Example.png Example: In this example, you are allocating between the three offices based on the square footage of each office. Each office’s square footage is recorded in your Square Footage (U) statistical account.

Click Apply.

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The Allocation Basis Dimension Member(s) appear on the page.

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Saving Your Allocation Method

To save this Allocation Method, click Save & Exit.

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  • The Allocation Method is saved.
  • A confirmation message appears.

Editing Allocation Methods

You can edit Allocation Methods you created. When you edit an Allocation Method, Planning Maestro updates all line items that use this method.

Step 1: To open the Allocation Methods application, see above.

Step 2: Select the name of the Allocation Method you want to edit.

Step 3: The Allocation Method’s information opens on the right. Edit as needed and click Save & Exit.

  • Your changes are saved.
  • A confirmation message appears.

Deleting Allocation Methods 

Step 1: To open the Allocation Methods application, see above.

Step 2: Click the Delete icon ( Delete.png) under the Allocation Method you want to delete.

Step 3: Click Confirm.

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  • The Allocation Method is deleted.
  • A confirmation message appears.

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Comments

3 comments
  • The first paragraph in this guide says you can apply an allocation method to any record in all five budgeting modules but my understanding is that allocation methods are not available in Drivers and Adjustments.

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  • Thanks, Alan!

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  • Allocation Dimension Member Selection – In this section, choose which Dimension Members (departments, versions, account numbers, programs, offices, etc.) are included in this Allocation Method. To select Dimension Members, select Click to Edit. Note: You should define Allocation Dimension Selection. Is this the Dimensions that one is allocating to or from? These are the same examples as the video. Some other examples would be helpful.

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