Revising the salaries & wages module

salaries & wages
6 posts / 0 new
Last post
Cornell Tsiang 1 X 3
CT
Revising the salaries & wages module

I am building a model for a start up. They will be adding headcount incrementally for the next 2-3 years. Rather than using the current Modano S&W module which calculates avg staff*avg annual base salaries, etc, the company wants a spreadsheet which will add one person at a time to the relevant dept.  A spreadsheet with columns such as name, title, dept, bse, start date, end date, base, annual leave, superannuation, etc.

I was thinking to insert an empty module on top of the S&W module (I am using the SaaS scenario template with COA number 6) which will then feed the results into the S&W module. Is this the most effective way?

Thanks

Cornell

Jun Yan A+ 124

Hi Cornell,

Depending on how familiar you are with module links, I would strongly suggest making the amendments on top of the existing S&W module.

The S&W module on COA 6 is actually somewhat complex as there's linkages out to WC, Payroll Tax, Corp Tax that you need to be across.

One suggestion is to build a separate module that contains the headcount information in a non time series worksheet, have it convert to time series data, and link the relevant volume / salary outputs into the existing S&W module. You can also do it in the existing module if you're comfortable working with components or customising modules. We've used both approaches and there are pros / cons for each.

Our general principle for building in Modano is to keep it simple, leverage the existing content that's there as it's all tried and tested.

One thing I've noticed, even from my own work / team, moving away from the separate assumptions & outputs is actually negative from a learning perspective, people forget that modules are essentially self contained models.

If you're stuck, this is probably one for support. Hope that helps.

Jun

Cornell Tsiang 1 X 3
CT

Hey Jun!

Hope you are well!

Agree with your advice. I will probably head down the separate module and feed into the S&W module route.  I am loath to play with the integrity of the S&W module itself.  I did that in the past and got mired in the plumbing with hair raising results (plus getting angry emails from the Modano crew).

Cheers and thanks again for the advice

Cornell

Jun Yan A+ 124

Hahaha! Yes, well there certainly is a right way to do things. It may feel tedious whilst you're doing it, but when you get it right, the scalability is amazing!

Keep at it!

Jun

Michael Hutchens A+ 189

Hi Cornell,

The approach recommended by Jun is the correct approach - i.e. always try to refactor an existing module without touching the links before considering building a module from scratch.

You're correct in noting that our Salaries & Wages (Drivers) module is complex. We built it many years ago as a one-size-fits-all module, which is no longer an approach we adopt, instead always erring towards simplicity as a starting point. We will be releasing a range of simpler salaries & wages modules going forward to address this.

Having said that, we do now have a training course which goes through the salaries & wages module in detail, which you can access here:

www.modano.com/resources/learning/financial_modeling_2/salaries_wages

As a general comment, there are 2 ways to successfully leverage Modano if you're wanting to customize modules rather than just use our content libraries off-the-shelf:

  1. Do the training and assessment exercises and get certified; or
  2. Purchase support credits and collaborate with our team.

The "getting angry emails from the Modano crew" you've mentioned are almost certainly a result of you not having chosen one of these proven paths. Out team's frustration does come through at times when our users don't invest sufficiently in training, refuse to purchase support credits, then ask for help doing quite complex things. It leaves us in a no-win situation, as we either assist and lose money, or don't assist and let our users fail, which if they're advising clients is brand damaging for us. Hence the frustration you may have sensed (not really anger).

Our subscription pricing is insanely cheap compared with any other comparable financial modeling solution provider in the world today - if one even exists - and our business model is based on only charging our users for what they need as they need it. But it assumes that there is an openness to purchase modelling support, which is why we haven't made our base subscription cost higher.

You're always welcome to try the forum, but we pride ourselves on giving our users a very strong ROI from their Modano investment, even when purchasing more support, so I'd recommend considering using our support platform more, or doing more training, if you really want to excel at Modano.

Michael

Cornell Tsiang 1 X 3
CT

Hi Michael

Thanks for the advice.  

It was tongue firmly in cheek when I mentioned the "angry" emails!  I have done a lot of the courses and would really prefer to DIY rather than rely upon the Modano support.   Having said that, I do plan to invest more into support. 

I will have another look at the module you recommended

Cheers

Cornell