Model's language is

Current available in English or Russian. Note that switching Model’s language would completely reset your language environment including entry forms and commentary fields.

Start date is

The Model assembler would only allow a first date of any month to be the Model’s start date. Non-conforming day of the month entry will automatically revert to the first day of the month chosen by user.

Note that, if your start data is not January 1st then your reporting periods and annual summaries would not fall on calendar quarter and year ends.

Step interval is

Step interval can be set to yearly, quarterly or monthly. By definition, the combination of the number of periods and periods’ step would set the timeline for your Model. For example, 60 monthly periods would mean your model’s horizon is five years.

Number of periods is

Can be set to any integer value between 3 and 60. By definition, the combination of the number of periods and periods’ step would set the timeline for your Model.

Please note that when selecting monthly or quarterly periods you are not restricted to make the total match to full number of years. For example, your project can forecast out for 38 months, or equivalent to 3 years and 2 months. In such a case, the annual summary would only pick up two months in the fourth year of your forecast.

Number of product lines is

Can range from 1 to 10. This is a structural feature provided for independent Revenue and Cost of Goods Sold assumptions for each product line. Please see details on revenue and COGS assumptions below (Step 2 and Step 3 respectively).

Number of Cost of Goods Sold Items is

Can range from 1 to 10. This is a structural feature applied to each product line. Assumptions for COGS Items are entered at Step 3.

Model's currency is

Customise currency

Sets the Model’s currency. The Model does not conform to any currency coding standard so you can input any name or currency code as needed by typing a text value or a symbol of your choice. For example, your currency can be GBP or £. Alternatively, select most common currency codes from the pull down menu provided.

Currency and units are scaled in

Label for Scale is

Sets scales for monetary and production units. On-line assembly form accepts either thousands or millions. However, offline working copy of the Model will accept any scale factor such as 1 or 1,000,000,000.

Labels are used to make line items of the Model easy to read and to interpret. Input field is in a text format so will take any value meaningful to users. For example, ‘000s’ or ‘thousands’ if the scale factor is set to 1,000.

Corporate tax rate is

Sets the income (corporate) tax rate. The default (dummy) value is 20%. Tax rate can be changed off-line, if required.

Number of Overhead Items is

Can range from 1 to 5. This is a structural feature applied to central costs assumptions for the whole business. Assumptions for Overheads Items are entered at Step 4.

Operational Uptime Schedule

This part of the entry form allows you to set up your production scenario.

Duration of Standard Work Shift, hrs

Number of Shifts Worked per day

Firstly, you have to set what % of total available time is used in your production process. This is achieved by inputting the length of regular work shift and number of shifts per day. For example, if your business runs three daily shifts of eight hours each it means the facility is working round the clock.

Include Saturday?

Include Sunday?

Tick to include Saturdays and/or Sundays as work days. For example, if you have three 8 eight hour shifts for seven days, including Saturday and Sunday, your production process becomes continuous 24 x 7.

Operational Uptime Ratio, % of 24*7

For ease of reference the form calculates your % of operational uptime. Continuous processes would show 100%. Likewise you can achieve any desired % utilisation or uptime ratios by manipulating number of shifts and hours per each shift.

Output Rate, units per hour

Output Rate per hour is applied to total hours worked in a period to calculate total output in units of finished product.

Product Pricing Assumptions

This area deals with product pricing assumptions.

1^st  Forecast [Month]

  Product Price, [USD]

Forecast [Months]:2 – [N]

  Price Growth, % per annum

Note that data for the first forecast period is entered in absolute terms as base level for driving subsequent periods by price growth rate.

For ease of reference growth rates are set on annual basis. For example, if your Model is quarterly, you do not have to apply a fraction of the year growth rate; the Model will do it for you automatically.

Please note that the on-line entry form allows only ‘flat’ (constant)  growth rate applied to all periods. This restriction applies to Demo version only. Your purchased Model has allows applying pricing assumptions for each forecast period as needed.

[N] number of rows for  input data

Matches number of COGS items selected at Step 1

COGS Item

Editable Legend for a cost line item. Can be changed off-line. Note that the Model does not allow different labels for different products lines.

1^st Forecast [Month]

Groups assumptions required to run off your forecast

(Structural Driver) Costs Expressed in

-          Per unit of production

-          Per hour of production

-          Per work shift

-          Fixed per period

To drive a cost element you can choose one of the four options from the pull down menu. Depending on the driver chosen your cost element will react to:

-          number of units produced during a period

-          number of hours worked during a period

-          number of shifts worked during a period

-          will remain constant, or indexed, if desired

Units

Unit label

Price per Unit RUB

Use this area to populate input variables for each COGS element. Note that units would have a different meaning depending on the cost driver selected. For example, if the driver is set to per unit of production a value of 0.5 would mean that for each unit of finished product 0.5 of the input cost is used. Label helps to reference and understand your input assumptions in the model. As production technology differs your input cost for a particular cost ingredient can be measured in kg, oz. or headcount. The Model has no restrictions on what a unit label could be.

Forecast[Months]: 2 – [N]

Price Index, % per annum

Allows applying annual growth rate to your input cost price. If your Model is quarterly or monthly, you do not have to apply a fraction of the year growth rate; the Model will do it for you automatically.

Please note that the on-line entry form allows only ‘flat’ (constant) growth rate applied to all periods. This restriction applies to Demo version only. Your purchased Model has allows applying pricing assumptions for each forecast period as needed.

[N] number of rows for  input data

Matches number of Overhead items selected at Step 1

Overhead Item

Editable Legend for a cost line item. Can be changed off-line.

1^st Forecast [Month][ 000s] [USD]

{entry fields with dummy values}

Groups assumptions required to run off your forecast, highlights your selection for currency and scale chosen at Step 1. Enter data for each line item in absolute currency terms for the first forecast period

% of Revenue

The form automatically calculates % of Revenue ratio for inputted values

Forecast[Months]: 2 – [N]

Groups data required to run your forecasts off the first period data entered to the left

Driver

-          Fixed, or

-          Variable

Expressed in

-          Index, % per annum

-          % of Revenue

Input, %

The fixed/variable driver input requires user to identify the type of driver for each cost element: fixed cost element will forecast out at growth rates set by user; variable cost element is modelled as a percentage of revenue (e.g. margin driven). This choice is structural and cannot be reversed once the Model is purchased.

Expressed in column highlights that the meaning of Input depends on the choice of driver. For example, if a line item’s driver is set to be Fixed, then input 5% into the ‘Input’ field means this line item should be calculated as 5% of Revenue. If the driver is set to Variable, then 5% should be read as 5% indexation per annum.

Please note that the on-line entry form allows only ‘flat’ (constant) growth rate applied to all periods. This restriction applies to Demo version only. Your purchased Model has allows applying pricing assumptions for each forecast period as needed.

[‘000s USD]

Header highlights currency and scale choices made at Step 1.

  Gross PP&E

  Accumulated Depreciation

  Net Fixed Assets {calc.field} 

  Financial Investments

  Deferred Tax Assets

  Other Long Term Assets

Long Term Assets {calc.field}

  Cash  / Rate % per annum

  Debtors / Days of Revenue

  Inventory / Days of COGS

  Raw Materials / Days of COGS

  Other CA

Current Assets {calc.field}

Total Assets {calc.field}

  Creditors / Days of Total Costs

  Short Term Revolver, Rate % pa

  Other CL

Current Liabilities

  Long Term Loan, Rate % pa

  Other Long Term Liabilities

Long Term Liabilities {calc.field}

  Net Assets {calc.field}

  Equity & Reserves {calc.field}

Allows populating data for your opening balance sheet items. The balance sheet structure is fixed and cannot be changed.

If your historic balance sheet has more items than what is provided for by the assembler, we suggest you analytically aggregate your line items to match the structure of the Model.

This step also allows for entry of interest rates assumptions for cash/debt items and working capital requirements expressed in turnover days. These are not structural changes and can be changed later off-line.

Note that ‘Clear Balance’ button wipes out any data for opening balance sheet wholesale. This may be useful in case of agreenfield project for which no opening balance sheet data exists.

To change interest rates and working capital assumptions directly in the Model go to the opening balance sheet tab.

Check

You cannot complete the online assembly if the total assets and liabilities amounts do not match. The check field at the bottom of the input screen would indicate an error if there is a mismatch.