Multi-Unit model - Sensitivity module

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2 years ago
#1
Hoang Nguyen A+ 15
Multi-Unit model - Sensitivity module

Hi all,

I wanted to create a multi-unit financial model (monthly historical and forecast) with sensitivity analysis at (i) whole company level (revenue, COGSs, opex,..), and/or (ii) each unit level (if possible). Does anyone happen to have the same model structure?

I tried to build (i) from multi-unit model template and (ii) from scratch using the Generic Model (COA5) then convert it into the multi-unit model as instructed by Modano Multi-unit model guidance, but then I cannot insert scenario manager module into the file due to incompatible time series. How can I solve this issue?

Thank you very much!

2 years ago
James Longden A+ 103

Hi Hoang. We'll do a video on this soon as it's a fiddly library change.

Broadly, if you open a scenario-based model at the same time as your multi-BU file, you will need to run through the compatibility process, as outlined in the help.

Using BUILD / TIME SERIES / CONFLICTS IDENTIFIER tool, you can see exactly where the two time series differ, as shown for the first difference below:

You need to convert your Multi-BU time series over to the Scenarios time series by lining the two up.

Not a big process. Will involve inserting the Scenarios analysis in rows 37:41 (right-hand side) into newly inserted rows in your Multi-BU model below rows 37 (left-hand side):

Make sure you add the range name as well. The conflicts identifier will guide you through the process and should show this when done:

Let me know how you go. Cheers. J.

 

2 years ago
Hoang Nguyen A+ 15

Great thanks, James. It worked perfectly. However, when I inserted (i) the scenario manager and (ii) monthly revenue scenario into the model, the scenario revenue module did not link to revenue of each business unit but appears as separate revenue items (which linked directly to financial statements). How can I link this scenario revenue module to the revenue module of each business unit so that I can apply scenario analysis to revenue of each business unit? 

Should I (i) link all category group of each business unit to the revenue module, and (ii) break all links of the business module to income statements/cash flows? Thank you.

 

2 years ago
Hoang Nguyen A+ 15

Hi James, I think I figured it out by myself.

The approach is based on module links concept. We need to

  • (i) insert scenario modules for revenue/COGSs/Opex (and consider them as the total amount of the whole company),
  • (ii) link in and link out the links of business unit modules' categories blocks to these newly inserted modules (e.g., revenue categories block of BUs to revenue module of the whole Company. and so on), and then
  • (iii) break the links of business unit modules to IS/BS modules.

After doing so, we will have (i) connections from BUs to the Company and (ii) the Company to the IS/BS modules so that we can put sensitivity to total revenue/COGSs/Opex of the Company. The remaining tasks are to check the links of BUs/the Company to other modules in the model (e.g., working cap) to ensure all links are correspondingly adjusted.

 

Best,

Hoang