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'Allocation and closing' data processing - Entries creation

"Allocation and closing" data processing - Entries creation

Once the system has been fully configured for the allocation and closing process, and the execution plan has been defined, you can run the 'Allocation and Closing' data processing, which generates double-entry postings based on the defined parameters

Let us now take a step-by-step look at how the data processing generates these entries once the process and any other filters to identify the data to be processed have been specified and the n-tuple (Entity/scenario/period/routine) to be run have been selected.

The FIRST STEP consists in deleting all existing entries that are about to be reproduced, specifically:

  • in the event of complete execution ("Run All" option enabled), the system deletes all Entity journals and detail entries previously generated by the execution of the same n-tuple
  • in the event of partial execution ("Partialize routine" option enabled), the system deletes all Entity journals and detail entries previously generated by the execution of selected rules only

The SECOND STEP consists in calculating the 'portion' of data to be processed, the drivers to be applied to this data (in the case of data processing belonging to the allocations family except for 'Reclassification'), the target data (in the case of data processing belonging to the target matching family) and the overrides on which to reclassify the data to be processed (in the case of data processing belonging to the 'Reclassification', 'Transfer Price' or Target Matching family).

Let us now see in detail how the system performs the relevant calculations:

  • the data to be processed, which, depending on the type of data processing associated with the rule, take on different names (data to be processed, to be adjusted or price), are calculated by filtering the existing data based on:
  • the scenario/period specified in the execution plan
  • the 'intersection' between the Entity defined in the execution plan and any Entity specified in the details of the rule to be run
  • the categories to be processed specified in the routine
  • the account nature specified in the rule to be processed
  • any filters defined on account and custom dimensions when defining the details of the rule to be processed
  • the drivers to be applied to the data to be processed are calculated in the same way as the data to be processed considering that:
  • the 'Allocation Driver Scenario' can be defined in the execution plan to be used as an alternative to the processing plan
  • the filter defined on the Entities in the execution plan is not applied
  • the filter on the categories to be processed specified in the routine is not applied
  • the filter on the account natures specified in the rules to be processed is not applied
  • the filters defined in the relevant tab ("Allocation Driver" or "Quantity" in the case of "Transfer Price"data processing) on account, Entity and custom dimension are applied when defining the details of the rule to be processed
  • the target data is calculated differently depending on the type of data processing defined for the rule to be processed, specifically:
  • in the case of "Target Matching", the target data is calculated in the same way as the data to be processed, bearing in mind, however, that the "Target Scenario" to be used as an alternative to the processing scenario may be defined in the execution plan
  • in the case of "Calculated Target Matching (through "fixed %)", the target data is calculated, applying the same filters defined for the calculation of the data to be processed (except for the one defined on the account), as a percentage of the value of the reference accounts specified in the details.
  • in the case of "Calculated Target Matching (through "calculated %" as a ratio)" the target data is calculated in the same manner as for "Calculated Target Matching (through "fixed %)" considering that:
  • the percentage (fixed or automatically calculated by the system) specified in the details is used for the calculation
  • the 'Scenario for Impact Calculation' can be defined in the execution plan to be used as an alternative to the processing one

The THIRD STEP consists in generating the adjustment entries. These entries are generated by applying the drivers or target data (depending on the data processing family defined for the rule) to the data to be processed.

Let us now see in detail how the system performs this calculation in the various processes:

  • Allocations (except Reclassification) family: each data item to be processed is split into as many entries as there are drivers to be applied, taking into account the defined filters and dimensions to be allocated. Each data item to be processed is then written off, creating an entry with opposite sign
  • Reclassification: the defined override is applied directly to the data to be processed, generating two entries: one reclassification entry, based on the dimensions specified in the rule details, and one with the opposite sign, which writes off the data to be processed
  • Target matching family: the generated entries are given by the difference between the data to be adjusted and the target data. It is possible to generate adjustment entries with a zero amount if so specified in the detail of the rule to be processed

The FOURTH STEP consists in applying the override to the generated entries. The overrides defined in the rule details are applied to:

  • both write-off and allocation entries, in the case of processing belonging to the allocation family
  • the write-off entry in case of "Reclassification"

The system always creates double-entry records, so the total of the write-off and allocation overrides (if both are present for the same dimension) will be zero.

If only a write-off (or allocation) override is specified, the system will cancel the allocated (or written off) amounts to ensure that the total in each sequence is zero.

If no override is specified, the dimensions of the data processing result will be exactly that of the data to be processed, except for the dimension where the Allocate option has been activated.

  • the target data and the related balance sheet accruals, in the case of data processes belonging to the target matching family

The LAST STEP consists in totalling the detail entries generated in the 'Entry details'. The totalled movements are saved in the table where the Entity journals are managed.