Multiple Modules With Same Link

Module Links
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6 years ago
#1
Cheyne Buckley A+ 4
CB
Multiple Modules With Same Link

Hi

Is it possible to have two modules with the same output link block number? (so that the two outputs are then aggregated on the Link In side?)

Most historical/forecast modules we build require the actual historical income statement and a set of normalisation adjustments to those historical number such that the summary/output income statement for the historical data is a combination of the two (i.e. a normalised view). We would like to show the two numbers separately so that readers can follow through the logic.

As a trial, I have created a new module following the same layout as the Historical Income Statement module with the category blocks coming in from the original HIS but with a separate set of data assumptions for users to input their normalisation adjustments. I have then set an output link for the "Income Statement Revenue (Historical)" link at Link Block #2. However, I note that the Revenue Outputs sheet still only brings in the first Link Block #2 (being the actual income statement) and not the combination of the two modules.

Am I following the correct logic here or would it be better to add additional sections in the already present Historical Income STatement assumptions with the calculations therein and only one Link Out?

Thanks

Cheyne

Attachments: 
HIS Normalisation Example.PNG
6 years ago
Michael Hutchens A+ 189

Hi Cheyne,

Module linking must be done on a single row-to-row basis, meaning that you can't link multiple rows out of a precedent module into the same row of a dependent module.

Hence, you have two options/workarounds if you're looking at doing this:

  1. Link the 2 rows (or category blocks) from the precedent module into 2 separate rows (or category blocks) in the dependent module, then use a 3rd row (or category block) in the dependent module to perform a calculation referencing both of these rows; or
  2. Add a 3rd row (or category block) to your precedent module which performs the calculation within this module and then link it out just once.

Based on the image you've provided, your link out needs to factor in both the base revenue assumptions and the normalization assumptions, so I would:

  1. Add an outputs module component to your historical income statement module.
  2. Calculate revenue (etc.) within this outputs module component, capturing both base assumptions and normalization assumptions.
  3. Add links out to the rows (and category blocks) within the outputs module component.
  4. Remove all links out from rows (and category blocks) within the original assumptions module component.

Then the historical income statement will link into forecast dependent modules on a row-for-row basis while taking to account your normalization adjustment assumptions.

I hope this helps. You appear to have a good understanding of the way module links work, but if you're looking for more information I'd recommend the certification exercises, financial modeling training exercises, and module links user guide section.

6 years ago
Cheyne Buckley A+ 4
CB

Hi Michael

Thanks for your prompt response.

Your suggestion worked great.

Kind regards

Cheyne