In the Analyze screen, you can choose one Issue to calculate interest on or multiple ones (Run Issue Selection). Is there a way to combine this calculation with the Categories and Entities that I have set up? For example, Royalties would be my issue and State or City would be my Category. Is it possible to run the calculation just using the adjustments that have Royalties and Cities? Can it be done just using Royalties?

There is not a direct selection based on Categories or entities, nor is one currently planned. However, there is a way to use issues to accomplish the desired goals.

The system requires the user to select an Entity and a Category for each Issue, you should set up identical Issues under the same Royalty Issue Group and refer to one as Royalties-State and one as Royalties-City (the issues will have the same parameters selected except for Category). If you need to break down the Issue even further using Entity, you should continue to add duplicate Issues under the Royalty Issue Group and select the relevant entity.

What is allocation method and what is the difference between Direct and Proforma?

Interest results are allocated to the detail level specified by the location of the Allocation bar in the Run Ordering & Detail list box on the Analyze screen. For a given jurisdiction/period, the method of allocation is determined by your selection of Direct or Proforma in the General Tab. The Direct method allocates interest to each of the adjustments on a proportional basis based on the adjustment amount, but only for those adjustments with the same value as the interest result (increase or decrease in liability). The Proforma method, which is the default method, allocates interest to each of the adjustments on a proportional basis based on the calculation of simple interest for each adjustment. In the case of the Proforma allocation method, all adjustments (increase or decrease in liability) are assigned an interest value; whereas in the Direct method, only adjustments representing increases in liability will be assigned an interest amount if the interest computation results in deficiency interest.

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