Weight Types and Weights

In the context of financial planning, Tagetik allows the user to use weights to be able to weight a certain value on the basis of a certain trend, expressed by the weight. A typical example is the calculation of double monthly salaries (the ‘thirteenth’ and ‘fourteenth’ month bonuses). In fact, although the projected P&L takes account of provisions for double months, it needs to manage the payment method for them, in the months of December and June, respectively, for which a cash disbursement for double the value of other months must therefore be planned. By assigning a weight equal to “2”, a greater cash disbursement can be obtained in the months in question, thus replicating the double monthly salaries.

On the other hand, a weight in twelfths could be useful for dividing a certain amount into twelfths.

Essentially, regardless of the specific weight indicated, the event that is generated by means of a weight incurs a “break down” equal to the following algorithm:

Total Amount / Algebraic sum of Weights * Value of the weight in the month

The management of weights requires a weight type definition. The weight type is a sort of version of the weights, e.g. 001 - Twelfths to split an amount monthly.

The weight is generally created to manage the calculation of double monthly salaries (‘thirteenth’ and ‘fourteenth’ months) , for example.

The management of weight types can be accessed from the administrator-user’s web interface, following the path Setup & Admin > Data processing > Cash Flow Planning > Advanced financial rules > Weights.

Navbar > Data Processing > Cash Flow Planning > Advanced Financial Rules > Holiday.

Every weight is identified by:

• a code;
• a description.

Once a weight type has been defined, it is necessary to tell the system:

• the process / entity to which it must be related;
• the date to which the value of the weight refers
• the value of the weight at the specified date, which may be expressed on a percentage basis or using an absolute value since the value of the weight is always compared to the total of the values of the month or year, based on the processing type of the “event (creation) rule”
• any specific credit terms rule of “Purchases” or “Sales” type that is assigned to the date when the events are created

This relationship can be managed from the end user’s web interface via the processes cockpit. To open the processes cockpit it is necessary to click on the “Processes” button (available on the end user’s home page and the left-hand panel) and then click on the desired cockpit.

Once the system has opened the selected cockpit, it is necessary to:

• select one of the phases of the process at the top of the screen
• select one of the entities over which the user has editability rights
• to click on the Financial Planning button and select the Weights option. The system opens the “Weights” view.