View resolved allocation calculations via a click-through path (drill through)

Description

In Corporate Performance Management (CPM) software, viewing resolved allocation calculations via a click-through path or 'drill through' means you can directly access the underlying data or calculations behind allocation in the system. This is a major win for organizations with complex allocation methodologies.

Example Use Case

Scenario: A eCommerce company uses a CPM software to manage and track their financial data. They have implemented cost allocations to divide the IT department's costs to various selling departments. The department heads need to understand how these allocations are calculated without having a PhD in Mathematics.

Solution: The software provides a 'drill through' feature where users can simply click a data point in a report or sheet, like IT Costs Allocation, and be taken directly to a more detailed view of the involved calculations. In this view, they can see the methodology behind the calculation (often headcount ratios in this example) and see the resolved calculations in addition to the actual formula. The resolved calculations show each step of the calculations, not just one final calculation.

Considerations

Department owners love to debate the merits of allocation methodologies. “It's not fair, I shouldn't have to carry that expense burden!” is a common complaint when allocations appear as a mysterious value on a tops-down budget. Providing insight into those numbers can help alleviate those concerns and lessen the amount of inquires that the finance team must field during critical budgeting and forecasting cycles.

With that in mind, making sure the process to drill-through and see the calculations must be easy. Something as simple as a right-click in the cell and a pop-up with the resolved calculation can be sufficient. Sending department owners on a click-a-thon will only result in more questions.

Questions to Ask a Vendor

• Functionality: How does the allocation drill through feature work in your system? Is it easy enough for my department heads to use and understand?
• Access Controls: What if some of the underlying calculations are private to the user, but the final output is not? What will they see, if anything?