Centralized formula list showing their usage across the model

Description

Implementing a centralized formula list within Corporate Performance Management (CPM) software involves compiling an accessible list of all formulas used in processing and reporting data across the system. This list is intended to show how each formula applies to the overall performance model and indicates where each formula is used.

Example Use Case

Scenario: A healthcare company uses a CPM system that has numerous formulas running at any given time. These include formulas for calculating various drivers used in the model, KPIs, and so on. However, with so many running, understanding each formula's role and usage is proving challenging.

Solution: A centralized interface showing all the formulas in use and their location provides some transparency regarding their usage. This assists the finance team in understanding how their budget or forecast is being calculated.

Considerations

Employees on your finance team will come and go - leaving behind a trail of formulas only they understand, and sometimes hidden in unexpected places. Seeing them all in one spot is incredibly helpful as the model grows over time, especially when auditing all the calculations.

Some systems will differentiate between a system-wide formula, and one-off formulas used in a specific cell. Ideally the system has a method to re-use those system-wide formulas easily.

Questions to Ask a Vendor

• Formula Home: Are formulas stored in a specific location that we can view?
• New Formulas: When we add a new formula will it automatically appear in the central location?
• Formula Usage: What if I want to change a piece of a system-wide formula in a one-off situation? Will it create an independent formula?