Add Collar

This section provides details on Collaring in the Coverages section of adding or editing an allocation. Collaring prevents extreme fluctuations in cost between one year and the next when charging accounts.  

1. Access the Coverages tab in the Allocations module.
2. Under the action menu, select Collar.
3. Fill out the form:
   • For the question Collar based on previously allocated asset values?, select Yes or No.  If you select Yes, the collar will default to settings used in the previous allocation. If you select No, you will determine new settings for the collars.
   • For Collar Type, select either Percent of Amount or Dollar Amount. 
   • For the Collar Range, type in the low and high amounts in the fields.
     
     In this example, the collars are -5% and 5%. These values mean that 1) if the new charge is more than a 5% increase compared with the previous period, the actual charge will only be 5% more, and 2) if the new charge is more than a 5% decrease compared with the previous period the actual charge will only be 5% less.
4. Once you have finished adding in collars, click Done to proceed to the next section.
   
   

The 5% maximum increase charge in this example is a high collar and the 5% maximum decrease charge is a low collar. If either of these collars is applied to a charge, you will see an icon next to the charge on the Preview page.  Read more about the charge icons and their meanings.

High collar applied:
Low collar applied: