Forecasts can be made either at the Section
level (e.g. apply a growth rate to all revenue items in a Division
), or at the Sub-Division
If you choose to specify by Sub-Division
, the most detailed forecast option is the "Build" option. Here, you'll add as many build "instructions" as you'd like, each of which corresponds to a line in excel.
Above is an example of what a build instruction line looks like. It has several options:
- A) Instruction Type. "Build" is a general instruction, "Label" will add an underlined label in the labels column but otherwise be blank, "Space" will add a blank row, and "Total" should be used once per sub-division as the final instruction, which represents the total for the given sub-division which will flow through to the rest of the model.
- B) Line Name. The name you enter here will be written into the labels column in excel, and can also be used as a reference name within formulas.
C) Historical Method. Options include:
D) Projection Method. Options include:
- E) Format Options. This sets the formats for the line.
- F) Add New Build Instruction. Adds a new line.
Within build instruction lines, creating formulas works very similar to excel. You can use excel functions in the formulas, like SUM, IF, ROUND, etc. References to other lines are the only part that's different. [EXPLAIN REFERENCES WITH EXAMPLES]