A formula can be displayed in a fully resolved format with the ability to click into resolved calculations

Description

A fully resolved format of a formula is a feature that allows complex formulas to be displayed in a more comprehensive and understandable manner. The software can break down calculations into individual steps, displaying the output of each stage. Coupled with a drill-down capability, users can click into and view the details and input of these resolved calculations, enabling more intuitive and in-depth analysis.

Example Use Case

Scenario: A financial analytics company uses CPM software to calculate and analyze financial ratios. The computation of these ratios involves complex formulas that can be hard to understand when simply looking at the end result.

Solution: The software can display these formulas in a fully resolved format, breaking down the formula from its composite parts. For instance, the debt-to-equity ratio calculation will display how liabilities and equity were individually calculated before integrating the obtained results into the overall ratio. In addition, a drill-down feature enables users to click into these resolved calculations for a granular understanding of the values.

Considerations

The goal here is to take the mystery out of a calculation, making the CPM tool more transparent to the user. The alternative to this is long formulas full of variables and drivers, simply outputting a value, with no ability for a non-admin to understand where the calculation came from in the first place.

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In the table above, the product would show both the “Original Formula” with each of the steps clickable, and when clicked show additional calculations behind that. For example, clicking Revenue would show all the revenue accounts that add up to that number for the time period in question.

This functionality is powerful and can be applied to many formulas in the system. Consider Workforce Planning where we might want to view a Salary account to see all the employees who are responsible for that expense. Or an Accumulated Depreciation account to see all the assets that are added into it.

Questions to Ask a Vendor

• Complex Formula Support: How well does your system handle the resolution of complex formulas? Is there a limit to the complexity that can be displayed?
• Drill-Down Functionality: How detailed is the drill-down functionality? Can I click to see the intermediate and input values of resolved calculations?
• Security: If a user is allowed to see an end result but not the resolved values (eg in a Workforce Planning model), how does the system render the resolved values?