Hello Team, I would really appreciate it if someone can shed more light on this ARM related question - I am trying to utilize the residual method for revenue allocation. It works fine when all the conditions are met. However i noticed that for residual method to be trigged all items (revenue elements) must have the allocation type defined as "Software" on the item record. Is it possible to use the residual method with multiple elements (MEA) with different allocation types. For example- Can I have Item 1 - Software, Item 2 - Normal. Item 3 - Normal, Item 4- Exclude, would the residual method still run or must it be software for all elements?

they all must be software 😞, otherwise residual does not work

Thanks for your response. Oh wow, is there any work around for this?

well, if you absolutely HAVE to have your residual revenue - not really. What is the reason software does not work?

Some items on the revenue arrangement need to be excluded from allocation calculation. From your feedback it seems the only walkaround would be reimport all the items as software. Is that correct?

“excluded” in this case seems to be “software”, no? that is, you want to retain the value. I suppose it is not the same value, correct? If this is the case script may be able to help you

If I understand you correctly, what you’re saying is that for residual allocation to work - The allocation type on all items in the element need to software, so I have have items with allocation type normal or software, then allocation wouldn’t work properly. Is that correct?

that is correct, if you do not have allocation set as Software on the item record, residual method will not work for these items

Wow, I’m clear on this now. Thank you so much Karina. This is super helpful