diff --git a/sensor-architecture.md b/sensor-architecture.md
index 50d919b..4435a24 100644
--- a/sensor-architecture.md
+++ b/sensor-architecture.md
@@ -304,6 +304,60 @@
 ENABLE_fan1 = 2 #Write a 2 to pwm1_enable
 ```
 
+### Defining sensors in an IPMI YAML configuration file
+For an example of how sensors entries are defined, consult the [example
+YAML](https://github.com/openbmc/phosphor-host-ipmid/blob/master/scripts/sensor-example.yaml)
+
+#### How to best choose coefficients
+Sensor reading, according to IPMI spec, is calculated as:
+
+```none
+y = L[(Mx + B * 10^(bExp)) * 10^(rExp)]
+```
+
+- y: the 'final value' as reported by IPMItool
+- x: 8 bits, unsigned, reading data encoded in IPMI response packet
+- M: 10 bits, signed integer multiplier, `multiplierM` in YAML
+- B: 10 bits, signed additive offset, `offsetB` in YAML
+- bExp: 4 bits, signed, `bExp` in YAML
+- rExp: 4 bits, signed, `rExp` in YAML
+
+In addition, phosphor-ipmi-host configuration also supports `scale` property,
+which applies for analog sensors, meaning the value read over DBus should be
+scaled by 10^S.
+
+As you can tell, one should choose the coefficients based on possible sensor
+reading range and desired resolution. Commonly, B=0, we would have
+
+    Supported range: [0, 255 * M * 10^(scale - rExp)]
+    Resolution: M * 10^(scale - rExp)
+
+For a concrete example, let's say a voltage sensor reports between 0 to 5.0V.
+hwmon sysfs scales the value by 1000, so the sensor value read over DBus is
+between 0 and 5000. A possible configuration for this is:
+
+```none
+multiplierM: 20
+offsetB: 0
+bExp: 0
+rExp: -3
+scale: -3
+```
+
+so for a DBus sensor value of 4986 meaning 4.986V, phosphor-ipmi-host would
+encode it as
+
+    x: 4986 / 20 = 249
+    M: 20
+    rExp: -3
+
+When ipmitool sensor list is called, the tool fetches sensor factors and
+computes value as:
+
+```none
+y = 20 * 249 * 10^-3 = 4.98 (V)
+```
+
 ### My sensors are defined in an MRW
 
 Setting up sensor support with an MRW is done by adding a unit-hwmon-feature