The Capacity selection criteria will determine how each users capacity (total work hours) will be calculated (note that this value is used as the Denominator in the utilization / allocation calculations).  The options include:

Note that when using this option, you are limited to showing Actuals only (e.g. you are not permitted to use any options including Assignments or Plans).

Note 1: Only those users having an effective date less than or equal to the report date range start date will be included in report output.  

Note 2: When using the Business Week Hours option, users who have an effective date that begins within the report date range will have their capacity number pro-rated.