To facilitate the top-down and bottom-up approach for planning, you must Distribute or break down the target at the parent node in the hierarchy to the child nodes.
Methods that are used to distribute top-down targets
- Do not distribute – the children do not inherit the target from the parent.
- Same value – each child has the same targets. Here, the concept of totals is missing, which means if you add up all the children, you do not get the parent’s total.
- Equally – distribute the target equally among the children nodes.
- Ratio based on a field – take a metric/target, and distribute the target based on the % of the total that each child has. This method can be used to distribute expense targets based on how much revenue each child is contributing.