Rollups for allocations
Summarize
Summary of Rollups for Allocations
A rollup is an allocation rule that connects lower-level accounts in the segment hierarchy to higher-level accounts. This feature enables automatic expense allocation, either at the account-specific or segment-specific level. Account-specific rollups dictate how expenses from a particular account roll up to one or more higher accounts, while segment-specific rollups manage expenses from all accounts within a segment to the parent segment.
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Key Features
- Account-Specific Rollups: Allow for customized expense allocation from a single account to designated higher accounts, taking precedence over segment rollups.
- Segment-Specific Rollups: Apply to all accounts within a segment, allocating expenses collectively to the parent segment or higher segments.
- Weighted Metrics: When using total weight support, allocation percentages are calculated based on consumption weight, ensuring accurate total weights at both segment and account levels.
- Visibility and Editing: Users can view accounts that roll up to another account, create new rollups between accounts and segments, and edit existing rollup records as required.
Key Outcomes
Customers can efficiently manage expense allocations across their account hierarchy, ensuring that financial representations reflect true consumption. By utilizing rollups, they can streamline financial modeling processes, achieve accurate budgeting, and maintain oversight of how expenses are distributed throughout different segments. This leads to better financial management and strategic decision-making within Project Portfolio Management.
A rollup is an allocation rule that specifies how a lower-level account in the segment hierarchy connects to other accounts above it in the hierarchy. Rollups allow you to allocate expenses to the lower-level account and have expenses automatically allocated to the higher-level accounts.
Rollups can be account-specific or segment-specific. Account-specific rollups specify how expenses roll up from one specific account to one or more accounts above it. Segment-specific rollups specify how expenses in all the accounts for a segment roll up to all the accounts in the segment above it, that is the parent level. You can also roll up segments to any segment preceding in the hierarchy, that is to the grandparent level.
- An account-specific rollup that allocates expenses in the email account in the business service segment to the IT account in the business unit segment.
- A segment-specific rollup that allocates expenses in the business service segment to the business unit segment.
Then the account-specific rollup allocates the expenses. The segment-specific rollup does not allocate any expenses.
Account-specific level rollup supports rolling to any parent or grandparent account in the hierarchy. You can roll up the expenses to any account up in the hierarchy, and not necessarily to the immediate parent in the hierarchy.
Rollups can not only be up in the hierarchy, you can also roll up amounts to accounts in the sibling segments.
Configure the rollup at the account level to any parent segment in the hierarchy, by selecting the Parent Segment in the Rollups popup.
Total weight support for allocations using weighted metric
If you use a weighted metric that is enabled with total weight support, then the metric calculates the allocation percentage accurately in the following total weight calculations:
- At segment level rollup, where allocate to metric is used and accounts do not have any rollup, the total percentages of all accounts in the segment add up to be less than 100%.
- At segment level rollup, where allocate to metric is used, the percentage of each account in the segment is calculated based on the consumption weight of the account.
- At account level rollup, where the account level rollup rule overrides the segment level rollup rule, the total percentage of all accounts adds up to be less than 100%.
- At account level rollup, the percentage of each account is calculated based on the consumption weight of the account.
- When allocating a bucket amount to a segment, the total percentage allocated to the segment adds up to be less than 100%.
- When allocating a bucket amount to a segment, the percentage allocated individually to each account in the segment is calculated based on the consumption weight of the account.