Modeling Tab (Allocation Line)

Application: The allocation line is used to show the dollar values flowing from one object to another, via the percentage above the allocation line. This percentage is based upon the assigned dollars flowing from one object to another. There are three different selections that can cause over allocations in a model.

Example #1 (Even weighting):

- The illustration below is a scenario where the Cost object is only $900

- Take a look at the allocations lines flowing to “Under Allocation” & “Over Allocation”

- At first glance, the allocation percentages do not match the dollar values in the Cost Source object

Continuing Example #1:

- The next screen shot is view of the data rows within the Cost object

- The summed value of negative and positive numbers equates to $900

- “Under Allocation” is row “C” in the Cost object and “Over Allocation” is row “B”

- Having unassigned dollars in Cost object will create this scenario

- The percentages are based upon the destination objects dollars / source object dollars

o “Under Allocation” = (-$1000/900) = -111.11%

o “Over Allocation” = ($10,000/900)= 1,111%

Refer to the “Allocation” screen shot below for Example #2 & #3

Example #2 (Multiply by Quantity):

- Make sure that this option is that correct allocation strategy needed. Often, customers will chooses “Multiply by Quantity” instead of “Weight by Click To Specify”

- This will cause an over-allocation if the Multiply by Quantity was used instead of Weight by

Example #3 (Advanced):

- When using this allocation method the only troubleshooting for over allocation is to double check the formula.