Equity & Patronage Weighted Average Allocation

The Levridge 2025 R2 Equity & Patronage release includes a powerful new tool: the weighted average allocation calculation type. This enhancement ensures that credits are allocated in direct proportion to the size of each transaction, rather than applying a flat rate across the board.

How Does Weighted Average Allocation Work?

Users create an allocation within the Equity and Patronage application. With the new feature, there’s now an option to select “weighted average” as the calculation type. Here’s how it works:

1. Transaction Querying: The system identifies all transactions that match the specified fields for the allocation.
2. Percentage Calculation: For each transaction, Levridge calculates what percentage it represents of the total transaction sum. For example, if one transaction is $100 and the total is $1,000, that transaction accounts for 10%.
3. Allocated Total: Users specify the total amount they wish to allocate across all transactions.
4. Proportional Distribution: The system multiplies the allocated total by each transaction’s percentage, resulting in new credit records that reflect the weighted distribution.

Why Weighted Average Matters

The introduction of weighted average allocation offers several key benefits:

• Enhanced Accuracy: Credits are distributed based on actual transaction values, reducing discrepancies and ensuring fairness.
• Greater Flexibility: Organizations can tailor allocations to reflect real-world business scenarios, such as rewarding larger contributions more significantly.
• Transparency: The calculation process is clear and auditable, making it easier to explain and justify credit distributions to stakeholders.

Step-by-Step Example

Imagine you have a set of transactions totaling $1,000. One transaction is $100. With the weighted average method, that $100 transaction represents 10% of the total. If you set the allocated total to $1,000, the system will assign $100 in credits to that transaction, with the remaining credits distributed proportionally among the other transactions.

Seamless Integration

Levridge Equity & Patronage 2025 R2 ensures that the new weighted average calculation type integrates smoothly with existing workflows. Users can generate and finalize allocations as usual, with the system automatically creating the new credit records. The familiar interface and process mean there’s no steep learning curve—just enhanced capability. By aligning allocations with actual transaction values, this feature supports better financial management and stakeholder trust.

Additional Resources

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