VC allocation

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VC allocation

If you configure VC allocation in RevPro, it can automatically determine whether allocation should be triggered for the VC lines. If an allocation is to be performed, RevPro can also identify the appropriate lines to participate in the allocation.

Before you configure VC allocation in RevPro, it is important to understand the processing logic of VC allocation in RevPro. It can help you make configuration decisions for VC allocation. VC allocation can be done either at the RC level or at the line level depending on your configuration. 

RC level allocation

For an RC level allocation, RevPro performs the 2-step derivation when an RC has one or more VC lines coming in:

  1. Compare the RC level TP% with the line level TP% for each individual line.

    • If the TP% of all individual lines (normal lines and VC lines) are within the overall RC level TP% range, no allocation is performed.

    • If the TP% of one or more lines is not within the RC range, RevPro will exclude all VC lines from allocation and proceed to Step 2 derivation.

  2. Check whether the TP% of all the remaining lines is within the RC level TP% range after all VC lines are excluded from allocation.

    • If the TP% of all the remaining lines is within the RC level TP% range, an allocation will be performed with all VC lines excluded.

    • If the TP% of one or more lines is still not within the RC level TP% range, the allocation will be performed with all lines included.

  • The line level TP% is calculated based on the following formula:

Ext Sell Price or Allocatable Price / Ext SSP Price

  • The RC level TP% is calculated based on the following formula. Note that the lines whose CV_ELIGIBLE_FLAG value is set to No are NOT included in the calculation. Those lines are excluded for the 2-step derivation.

Total Sell Price or Total Allocatable Price / Total Ext SSP Price

Whether the VC line participates in the previous allocation also has an impact on allocation:

  • If the VC line has participated in the allocation earlier, any change to the VC line afterward will trigger allocation.

  • If the VC line does not participate in the first allocation, any change to this VC line afterward will not trigger allocation. RevPro will do one of the following depending on the changes to other lines that come in together with this VC line change:

    • If the VC line change comes in with new lines added to the RC, the 2-step derivation will be performed.

    • If the VC line change comes in with changes to the existing RC lines, an allocation will be performed.

Line level allocation

For line level allocation, 2-step derivation will not be performed. Instead, RevPro checks whether the transaction price of the VC line is within the SSP range at the line level.

  • If the transaction price of the VC line is within the SSP range, no allocation will be performed for this VC line.

  • If the transaction price of the VC line is not within the SSP range, an allocation will be performed for this VC line.

The VC_CHK_REV_PRD profile also has an impact on the line level VC allocation. This profile determines whether the VC line that does not participate in allocation during the Initial Contract timeline should be reassessed for allocation that is performed for changes that occur to any line during Contract Revision timelines. Possible values for this profile are as follows:

  • Never Re-Assess: This VC line will never be reassessed for allocation during Contract Revision timelines.

  • Re-Assess when Retrospective: The VC line will be reassessed for allocation if the retrospective change occurs during Contract Revision timelines.

  • Re-Assess if VC line is not fully satisfied: The VC line will be reassessed for allocation if the VC line is not fully satisfied during Contract Revision timelines.

During Contract Revision timelines, if a new VC line is added to the revenue contract, this VC line will always be considered for the allocation that is triggered for any changes.

Configure VC allocation in RevPro

To configure VC allocation in RevPro, set up the following profiles and lookups by using the side menu on the Setups/Application page.

Name Description System Level Value
SYS_CHK_NOT_WITHIN_VC Use this profile to enable RevPro for VC allocation.
  • true
  • false
ALLOC_WITHIN_FV_TRANS Use this profile to enable RevPro to perform allocation on the lines that are within the SSP range.
  • Yes
  • No
VC_ELIGIBILITY_CHK_MTD Use this profile to specify whether the VC allocation should be done either at the RC level or at the line level.
  • RC Level Range
  • Line Level SSP Range

Thoes values are defined by the VC_ELIGIBILITY_CHK_MTD lookup.

VC_CHK_REV_PRD

Applicable to line level VC allocation.

Use this profile to specify whether the VC line that is excluded from earlier allocation should be re-assessed for allocation when changes to other lines occur in an RC. 

  • Never Re-Assess
  • Re-Assess if VC line is not fully satisfied
  • Re-Assess when Retrospective

Those values are defined by the EX_VC_REASSES_METHOD lookup.

 

RC_LEVEL_SSP_RANGE Set this lookup to specify the SSP range at the RC level N/A
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