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New Contributor

How to calculate within specific tenure?

Dear All,

I am looking for the best solution how calculate/distribute an amount within specific tenure once it was triggered by a variable.

Example:

1 million of revenue will be recognized equally over 24 months once the project is completed.

The 1st month of the recognition starts on the following month once the project completed (the variable).

The revenue recognition will ends after the 24th month from the 1st month of recognition. Or it will end once cumulative revenue is 1 million

Your suggestion if much appreciated. 

Thank you

6 REPLIES 6
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Master Anaplanner/Community Boss

Re: How to calculate within specific tenure?

Hi

Yes, the profile function will work here.

1. Set up a Profile Allocation module for as many months forward as you need (you can also set up different profile methods if needed)

2017-10-12_15-46-28.png

2. Use the profile function from to allocate the amount forward.  The assumes the first line item from 1 is the first month of the allocation, so you need to "move" or "reference" the cost to allocate into that month.  I have mocked up some simple logic below to illustrate

2017-10-12_15-53-51.png2017-10-12_15-56-44.png

This will automatically stop the allocation after 24 months

Further details can be found here:

https://community.anaplan.com/t5/Calculation-Functions/PROFILE/ta-p/17425

I hope that helps

David

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New Contributor

Re: How to calculate within specific tenure?

Hi David,

Thanks alot for your suggestion. 

Highlighted
New Contributor

Re: How to calculate within specific tenure?

Hi David,

How can I have multiple % Allocation for different type of products that may have 12 mths tenure?

My solution: based on you suggestion, I will need to create multiple profile to cater for different mth and use if formula to select which profile it should refer to.

Any other better suggestion my solution above?

 

Thank you

Highlighted
New Contributor

Re: How to calculate within specific tenure?

Hi David,

How can I have multiple % Allocation for different type of products that may have 12 mths tenure?

My solution: based on you suggestion, I will need to create multiple profile to cater for different mth and use if formula to select which profile it should refer to.

Any other better suggestion my solution above?

 Thank you

Highlighted
Master Anaplanner/Community Boss

Re: How to calculate within specific tenure?

Hi

You can use an IF statement, but there is a better, more effficient way using Line Item Subsets.  

Using Line Item Subsets is a little complicated, but once mastered it is a very useful technique.

Also, I prefer to keep the calculations in multiple modules as it is clearer to understand when you have different dimensionality

I will outline the steps now.

1. Create more line items in the Profile model to account for the different phasing profiles

2017-10-13_09-17-49.png

2. Set up a line item subset from this module

2017-10-13_09-18-22.png

3. Set up a Projects Profile Choice module, dimensioned by project with a single line item formatted as the newly created line item subset.  This is where you will assign the profile to the project

2017-10-13_09-18-53.png

4. Create a Projects profile module with two line items.  The first Collect(), utilises the Line Item Subset functionality to concert the line items into "list items". The dimensons should be the the 24 months list and the Line Item Subset.  The second line item uses a lookup from the Projects Profile Choice module to pull in the correct profile

2017-10-13_09-20-05.png2017-10-13_09-20-40.png

5. Point the Recognition profile line item to this line

2017-10-13_09-31-53.png

Voila!

David

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Contributor

Re: How to calculate within specific tenure?

I know you wrote this solution over 2 years ago, but it is really going to come in handy for me in my latest project. Thank you!!