Driver-based Top-down Allocation
By Joyce Zhou - Feb 27, 2015
Allocations are commonly used throughout the process of planning and budgeting, mostly to distribute shared costs or revenue target over different entities, products, projects or any other dimensions. Kepion can support different types of top-down allocations that are driven by user input. These can include, but not limited to:
- User-entered percentages
- User-entered dollar amounts
- Pre-defined spread methods, where users can choose by drop-down
Typically, customers will have specific requirements on their top-down allocation process, driven by their business industry and planning workflow. When these requirements are defined, the design of the calculations can then be reflected within the system. Kepion has demonstrated its flexibility in configuring complex business rules, while providing a user-friendly interface that allows business users to fully control their allocation process.
Let’s examine some real world projects:
Example #1. Here, the management team can plan for their sales revenue increase for following five years in their Strategic Planning dashboard. They can allocate percentage mix rates by different brands. In this example, Kepion was configured to take the percentages from the user input form and calculate the revenue target along the product hierarchy.
Example #2. The CFO wanted to create top-line dollar budgets at the departmental level. Kepion was configured to allocate those numbers down to individual account items within the expense category while holding Salaries and Benefits constant.
Example #3. The business analyst wanted to set budget goal by year, and use pre-defined distribution methods to spread the total dollar amounts across the year. In addition, they wanted the flexibility of manually entering their numbers at the monthly level. Kepion was configured to handle both scenarios.