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    • EPCM Allocation Precision Produces Inaccurate Results

    in Profitability and Cost Management 1 comment

    Summary:

    In EPCM, when using an allocation precision of 2 and performing an SDE allocation rule allocation data from one member to various members within the same dimension based on a driver, the allocation results are not consistent with a manual calculation performed in Excel. This results in nearly all members receiving an allocation result that is slightly lower than expected and one destination member with an allocation amount that is MUCH higher than expected. Can anyone provide an explanation on how the allocation precision setting works in the calculation engine?

    Content:

    The total "Allocation In" value in the destination equals the total "Allocation Out" value in the source, but the individual base level intersections do not calculate as expected. The system appears to be rounding each allocation down for nearly every instrument (so the allocation result is very close to the manual calculation), but then it appears to "plug" the remaining difference into a single random intersection. I believe the intersection it chooses is the member with the highest driver value relative to the other destinations.

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