How Allocated Amounts are Calculated

Quadra's Allocations calculator follows a series of steps to derive the final allocated cost.

The steps of the allocation calculation are outlined below:

Initial amounts and rates are determined:
- For Full Distribution coverages, initial amounts are based on user-defined rates.
- For Fixed Rate coverages, initial rates are based on user-defined amounts.
The shared amount logic runs based on the initial amounts derived above.
Capping and collaring rules are applied:
- Final amounts for Full Distribution coverages are adjusted based on capping and collaring:
  - Capping is applied at the account level and is evenly distributed to assets. Capping will supersede collaring in the allocation calculation.
  - Collaring is applied at the asset or account level. New assets, not previously allocated, cannot be collared at the asset level.
- Final amounts and rates for Fixed Rate coverages are adjusted based on capping:
  - Capping is applied at the account level and is evenly distributed to assets.
  - Collaring is not available on Fixed Rate coverages.
Modifiers are applied to coverages.
Payors are applied which may split the allocated charge over multiple accounts.
Asset overrides are applied first, followed by account overrides. Account overrides are distributed to assets by basis percentage.