Setting Up Rules in Journals

What Are Rules

Rules allow you to look up data from the Reporting Cube and modify the formula for the line associated with the journal entry. The Cube is a multi-dimensional structure defined by a set of dimensions and functions and is used to analyze data. The Reporting Cube is created based on the application structure.

For Non-Controlling Interest and Dynamic Journals, you can define a formula to access data from a previous financial year, access data for two periods before the period for which a Dynamic Journal is being processed, or access data from a scenario other than the scenario for which the formula is being processed.

Consider Alex, who aims to compute the royalties generated from booked sales. By uploading the sales data into the Planful application, he can establish a rule within the system to calculate the royalty amount.

In his rule, he specifies that the royalty should be 10% of the sales (C1 * C2, where C1 represents the sales data and C2 is the 10% royalty rate). The system then automatically records the calculated amount as both Credit and Debit values in the corresponding journal entry.

Additionally, Alex can set up a minimum value for the royalty amount. For example, if he wants to ensure a minimum of $1500, he can set up a rule as (min[1500] or [C1 * C2]). If the outcome of the multiplication (C1 * C2) is less than $1500, the royalty value will be $1500 and if the outcome of the multiplication (C1 * C2) is more than $1500, then the result will be (C1*C2). This rule can be customized for a specific company or employed universally across all companies within the tenant, depending on the user's discretion regarding rule processing preferences.

This approach not only saves Alex’s time that would be spent on manual calculations but also minimizes the risk of errors.

How to Set Up a Rule?

Perform the below steps to set up a rule:

1. Navigate to Consolidation to open the Consolidation Control Panel
2. Select a Dynamic Journal or Non-Controlling Interest and click the View icon.
   
3. Select the Journal Entry tab and select a Rule of an entry to Enter Rule.
   
4. Click the arrow to browse values for the Line Formula field.
   
5. Click the Save icon if you want to save the Simple Rule. Click Advanced Rule if you want to change the formula for the line associated with the journal entry and add functions to create a dynamic formula.
6. Select the values for RepCube and Function. Click the Add icon to include the values in the Advance Rule formula.
   
7. Click the Check Syntax icon to verify the syntax.
   
8. Click the Save icon after finalizing the rule formula.
   
9. Click the Clear Rule icon to delete the added rule.