All Collections
Forecasting
Setting up the baseline
Setting up Value Rules in a Fathom Forecast
Setting up Value Rules in a Fathom Forecast

How Profit & Loss values are calculated in your forecast

Updated over a week ago

Contents


What is a value rule?

A value rule determines how Profit & Loss values are calculated in the Fathom forecast main grid. They comprise the rules, formulas, or methods for ensuring that numbers are presented on the forecast accurately.

In Fathom, value rules can be set on the overall classification, heading, or individual account level. You’ll initially set up the default value rules when you first create your forecast, but these rules can also be edited or changed at any time in the main grid.


Types of value rules

Value rule type

Calculation method

Direct Entry

A custom value is entered into the forecast grid. This value can come from calculation methods or simply be a ballpark figure. These are typed into individual value cells.

Link to previous period

Use actuals from last month, last quarter or actuals from the same month last year. Increase / Decrease by a percentage or dollar amount (% / $).

Smart Prediction uses statistical prediction of future values (3/6/12/24-month linear regression) or a rolling average to calculate forecast values. Smart Prediction includes an option for seasonal adjustments when the regression or average is based on 12 or 24 months of data. Using the rolling average to forecast also allows you to incorporate a monthly, quarterly, or yearly increase or decrease into the calculation.
​
For more detail on Smart Prediction, please see our 'Smart Prediction Methodology' article.

Constant/ Growing

A repeating value that may or may not be increased or decreased at a constant rate each period.

Launches a formula builder to allow you to customise your calculation and include drivers/other account values.

πŸ’‘Pro Tip: You can turn on account codes to help you differentiate between accounts and headings when building a formula value rule.

Link to Budget

The value for this account is directly linked to the budget uploaded to the company settings.

πŸ“ Note: If you have imported divisional budgets for a Xero or QuickBooks Online company, only the company total for the budget will be brought into the forecast with the Link to Budget value rule.


Creating a Value Rule

To create a value rule in the main grid,

  1. Click on an account's cell in the main grid to open the configuration panel on the right-hand side of the grid
    ​
    ​

  2. From here, you can view the current rule and change it by using the β€˜Three dots’ icon to β€˜Edit’ the default rule or add a β€˜New rule’.
    ​
    ❗Notice: If you edit the rule, you'll change the rule for all of the accounts and periods using that rule. The values using the current value rule will be highlighted in green on the main forecasting grid when you hover over the 'Edit' option.
    ​
    ​

  3. You can then select from a dropdown of choices and configure those further to suit your needs.

πŸ’‘Pro Tip: To type in a value for a cell, simply double-click on the cell. This will create a direct entry. Then, you can use the 'Tab' option to move to the next cell.

πŸ“ Note: Value rules can only be applied to Profit & Loss headings, subheadings, and accounts. Balance Sheet values are set according to timing profiles, journals, and schedules. Any P&L accounts derived from the Balance Sheet (e.g. Interest, depreciation, etc.) will also be calculated according to journals and schedules.


Next steps

Continue the 'Forecast Creation & Setup Workflow' by choosing from one of the next steps below:

What you want to do:

Where to go next:

Import or create drivers to use as variables in formula value rules

Forecast AR, AP, Unearned/Deferred Revenue, and Prepaid Expenses

Set up taxes and account linkages and your forecast

Set up loans, depreciation, and inventory in your forecast


Additional knowledge & common questions

Did this answer your question?