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The video tutorial addresses the challenge of allocating amounts across different time periods in contracts and prepaid rentals. It highlights the complexities involved in managing these allocations, especially with changing contracts. The presenter demonstrates using Power Query to streamline this process. They showcase a transformed data table that breaks down contract details, including start and end dates, duration, and amount allocated per month. The tutorial emphasizes the importance of having a dynamic system that can adjust easily to new contracts and modifications, thereby simplifying the allocation process without relying on complicated formulas.