Best Practice Modelling

SMA 13. Multiple Workbooks - Best Practice Model Example 2

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Primary Developer: BPM

Best Practice Modelling:
Notes indicating linked
Cover Notes workbooks on cover sheet.
- This example model has been set up to demonstrate the best practice linking of multiple workbooks.
- This workbook exports data to the workbook 'BPM-SMA 13-Best Practice Model Example 1'.
- Use of this model is subject to the training model terms and conditions on the Best Practice Modelling website.
Table of Contents
SMA 13. Multiple Workbooks - Best Practice Model Example 2
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Section & Sheet Titles Page

1 Overview 3
1.1. Notes 4
a. Linked Workbooks Diagram 5
2 Assumptions 6
2.1. Time Series Assumptions 7
a. Time Series Assumptions 8
2.2. Forecast Assumptions 9
a. Assumptions 10
- Operational - Assumptions -
- Working Capital - Assumptions -
- Assets - Assumptions -
3 Outputs 11
3.1. Forecast Outputs 12
a. Outputs 13
- Operational - Outputs -
- Working Capital - Outputs -
- Assets - Outputs Best Practice Modelling: -
Model export section (BPMC 13-4).
4 Appendices 16
4.1. Model Exports 17
a. Model Exports (To BPM-SMA 13-Best Practice Model Example 1) 18
4.2. Checks 20
a. Checks 21
- Error Checks -
- Sensitivity Checks -
- Alert Checks -
4.3. Lookup Tables 24
a. Time Series Lookup Tables 25

Total Pages: 27
 Overview
Section 1.
SMA 13. Multiple Workbooks - Best Practice Model Example 2
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Section Cover Notes

Contains notes explaining the purpose and use of this model and where more help can be obtained.
Contains diagrams summarising designated components of the model.
Also contains keys explaining the Formats & Styles, Sheet Naming & Range Naming principles used in this model.

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 Notes
Sub-Section 1.1.
SMA 13. Multiple Workbooks - Best Practice Model Example 2
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Sub-Section Cover Notes

Contains general notes about the purpose and use of this model.
Also contains contact details for BPM.

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Linked Workbooks Diagram
SMA 13. Multiple Workbooks - Best Practice Model Example 2
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Best Practice Modelling:

BPM-SMA 13-Best Practice Model Example 1 Linked workbooks diagram used
to clearly specify links between
Description workbooks (BPMC 13-5).
● Financial model.

Details
● Contains capital structure, taxation and other
financial financial statement items
assumptions.

● Operational
● Working Capital
● Assets

BPM-SMA 13-Best Practice Model Example 2

Description
● Operational model.

Details
● Contains operational, working capital and
assets assumptions.

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 Assumptions
Section 2.
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Section Cover Notes

Contains base case assumptions used to generate the base case outputs.

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 Time Series Assumptions
Sub-Section 2.1.
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Sub-Section Cover Notes:

Contains assumptions used to drive the time series analysis within the model.

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Time Series Assumptions
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Time Series Assumptions

Core Time Series Assumptions

Title Primary
Periodicity Annual
Financial Year End 31 12
Start Date 1-Jan-10
Periods 8
Denomination 2

Historical & Forecast Period Titles

Include in Period Titles? ✘1

Actual Periods -
Budget Periods -

Data & Projections - Timing Assumptions

Data Term Basis 1

Data - Active Periods 3
Projections - Start Date 1-Jan-13

Notes
- A Financial Year End assumption of 28th of February is assumed to be a month end financial year end, even in a leap year.
- The "Model Denomination" assumption will not necessarily automatically change the denomination of the outputs of this model.
- A "Budget Period" refers to either a period in the current financial year or periods containing combined actual and forecast data.
- "Data & Projections - Timing Assumptions" are used as the basis for related data and projections time series sheets.
- Use the bpmToolbox "Update Time Series Columns" tool to hide inactive data and projections time series periods.

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 Forecast Assumptions
Sub-Section 2.2.
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Sub-Section Cover Notes:

Contains forecast assumptions for all areas within the underlying business.

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Assumptions
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Year Ending 31 December 2010 (F) 2011 (F) 2012 (F) 2013 (F) 2014 (F) 2015 (F) 2016 (F) 2017 (F)

Operational - Assumptions
Base Amount Periodic Growth Rate (%)
Revenue 125.0 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%
Cost of Goods Sold 25.0 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%
Operating Expenditure 40.0 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%
Capital Expenditure - Assets 15.0 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%
Capital Expenditure - Intangibles 2.5 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%

Notes
1 Revenue and expense base amount assumptions are specified in $Millions.
2 Revenue and expense assumptions are entered as positive numbers.

Working Capital - Assumptions

Opening Balance Debtors/Creditors Days
Accounts Receivable 21.0 30 30 30 30 30 30 30 30
Accounts Payable 16.0 45 45 45 45 45 45 45 45

Error Check (Invalid Days Assumption) - - - - - - - - -

Notes
1 Opening balance assumptions are specified in $Millions.
2 Debtors/creditors days assumptions cannot be greater than the number of days in that period.

Assets - Assumptions
Opening Balance Depreciation/Amortization - % of Capital Expenditure
Assets 145.0 90.0% 90.0% 90.0% 90.0% 90.0% 90.0% 90.0% 90.0%
Intangible Assets 11.5 25.0% 25.0% 25.0% 25.0% 25.0% 25.0% 25.0% 25.0%

Notes
1 Opening balance assumptions are specified in $Millions.

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 Outputs
Section 3.
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Section Cover Notes

Contains base case outputs - i.e. includes only the impacts of base case assumptions.

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 Forecast Outputs
Sub-Section 3.1.
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Sub-Section Cover Notes:

Contains forecast outputs for all areas within the underlying business other than financial statements.

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Outputs
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Year Ending 31 December 2010 (F) 2011 (F) 2012 (F) 2013 (F) 2014 (F) 2015 (F) 2016 (F) 2017 (F)

Operational - Outputs

Revenue 125.0 128.1 131.3 134.6 138.0 141.4 145.0 148.6

Cost of Goods Sold 25.0 25.6 26.3 26.9 27.6 28.3 29.0 29.7
Operating Expenditure 40.0 41.0 42.0 43.1 44.2 45.3 46.4 47.5
Capital Expenditure - Assets 15.0 15.4 15.8 16.2 16.6 17.0 17.4 17.8
Capital Expenditure - Intangibles 2.5 2.6 2.6 2.7 2.8 2.8 2.9 3.0

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Outputs
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Year Ending 31 December 2010 (F) 2011 (F) 2012 (F) 2013 (F) 2014 (F) 2015 (F) 2016 (F) 2017 (F)

Working Capital - Outputs

Accounts Receivable Balances ($Millions)

Opening Balance 21.0 10.3 10.5 10.8 11.1 11.3 11.6 11.9
Revenue 125.0 128.1 131.3 134.6 138.0 141.4 145.0 148.6
Cash Receipts (135.7) (127.9) (131.1) (134.3) (137.7) (141.1) (144.7) (148.3)
Closing Balance 10.3 10.5 10.8 11.1 11.3 11.6 11.9 12.2

Closing Balance Periodic Growth (% per Year) 2.5% 2.2% 2.8% 2.5% 2.5% 2.2% 2.8%
Debtors Days 30 30 30 30 30 30 30 30

Total Error Checks Result - - - - - - - - -

Accounts Payable Balances ($Millions)

Opening Balance 16.0 8.0 8.2 8.4 8.6 8.8 9.1 9.3
Costs 65.0 66.6 68.3 70.0 71.7 73.5 75.4 77.3
Cash Payments (73.0) (66.4) (68.1) (69.8) (71.5) (73.3) (75.2) (77.0)
Closing Balance 8.0 8.2 8.4 8.6 8.8 9.1 9.3 9.5

Closing Balance Periodic Growth (% per Year) 2.5% 2.2% 2.8% 2.5% 2.5% 2.2% 2.8%
Creditors Days 45 45 45 45 45 45 45 45

Total Error Checks Result - - - - - - - - -

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Outputs
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Year Ending 31 December 2010 (F) 2011 (F) 2012 (F) 2013 (F) 2014 (F) 2015 (F) 2016 (F) 2017 (F)

Assets - Outputs

Assets Balances ($Millions)

Opening Balance 145.0 146.5 148.0 149.6 151.2 152.9 154.6 156.3
Capital Expenditure - Assets 15.0 15.4 15.8 16.2 16.6 17.0 17.4 17.8
Depreciation (13.5) (13.8) (14.2) (14.5) (14.9) (15.3) (15.7) (16.0)
Closing Balance 146.5 148.0 149.6 151.2 152.9 154.6 156.3 158.1

Total Error Checks Result - - - - - - - - -

Intangibles Balances ($Millions)

Opening Balance 11.5 13.4 15.3 17.3 19.3 21.4 23.5 25.7
Capital Expenditure - Intangibles 2.5 2.6 2.6 2.7 2.8 2.8 2.9 3.0
Amortization (0.6) (0.6) (0.7) (0.7) (0.7) (0.7) (0.7) (0.7)
Closing Balance 13.4 15.3 17.3 19.3 21.4 23.5 25.7 27.9

Total Error Checks Result - - - - - - - - -

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 Appendices
Section 4.
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Section Cover Notes

Contains checks and lookup tables.

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 Best Practice Modelling:
Model exports section used to contain
all model exports (BPMC 13-4).

Model Exports
Sub-Section 4.1.
SMA 13. Multiple Workbooks - Best Practice Model Example 2
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Sub-Section Cover Notes:

Contains data exported to external workbooks.

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Model Exports (To BPM-SMA 13-Best Practice Model Example 1)
SMA 13. Multiple Workbooks - Best Practice Model Example 2
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Year Ending 31 December 2010 (F) 2011 (F) 2012 (F) 2013 (F) 2014 (F) 2015 (F) 2016 (F) 2017 (F)

Best Practice Modelling: Best Practice Modelling:

Operational - Outputs External workbook exports located on a External workbook exports linked directly
dedicated, workbook-specific model export to linked workbook imports
Revenue sheet (BPMS 13-1, BPMC 13-1). 125.0 (BPMS 13-3,131.3
128.1 BPMC 13-3).134.6 138.0 141.4 145.0 148.6
Cost of Goods Sold 25.0 25.6 26.3 26.9 27.6 28.3 29.0 29.7
Operating Expenditure 40.0 41.0 42.0 43.1 44.2 45.3 46.4 47.5
Capital Expenditure - Assets 15.0 15.4 15.8 16.2 16.6 17.0 17.4 17.8
Capital Expenditure - Intangibles 2.5 2.6 2.6 2.7 2.8 2.8 2.9 3.0

Working Capital - Outputs Best Practice Modelling:

Model import and export sheet
Accounts Receivable Balances ($Millions) consistency (BPMC 13-2).

Opening Balance 21.0 10.3 10.5 10.8 11.1 11.3 11.6 11.9
Revenue 125.0 128.1 131.3 134.6 138.0 141.4 145.0 148.6
Cash Receipts (135.7) (127.9) (131.1) (134.3) (137.7) (141.1) (144.7) (148.3)
Movement in Accounts Receivable (10.7) 0.3 0.2 0.3 0.3 0.3 0.3 0.3
Closing Balance 10.3 10.5 10.8 11.1 11.3 11.6 11.9 12.2

Accounts Payable Balances ($Millions)

Opening Balance 16.0 8.0 8.2 8.4 8.6 8.8 9.1 9.3
Costs 65.0 66.6 68.3 70.0 71.7 73.5 75.4 77.3
Cash Payments (73.0) (66.4) (68.1) (69.8) (71.5) (73.3) (75.2) (77.0)
Movement in Accounts Payable (8.0) 0.2 0.2 0.2 0.2 0.2 0.2 0.3
Closing Balance 8.0 8.2 8.4 8.6 8.8 9.1 9.3 9.5

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Model Exports (To BPM-SMA 13-Best Practice Model Example 1)
SMA 13. Multiple Workbooks - Best Practice Model Example 2
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Year Ending 31 December 2010 (F) 2011 (F) 2012 (F) 2013 (F) 2014 (F) 2015 (F) 2016 (F) 2017 (F)

Best Practice Modelling: Best Practice Modelling:

Assets - Outputs External workbook exports located on a External workbook exports linked directly
dedicated, workbook-specific model export to linked workbook imports
sheet (BPMS 13-1, BPMC 13-1).
Assets Balances ($Millions) (BPMS 13-3, BPMC 13-3).

Opening Balance 145.0 146.5 148.0 149.6 151.2 152.9 154.6 156.3
Capital Expenditure - Assets 15.0 15.4 15.8 16.2 16.6 17.0 17.4 17.8
Depreciation - % of Capital Expenditure 90.0% 90.0% 90.0% 90.0% 90.0% 90.0% 90.0% 90.0%
Depreciation (13.5) (13.8) (14.2) (14.5) (14.9) (15.3) (15.7) (16.0)
Closing Balance 146.5 148.0 149.6 151.2 152.9 154.6 156.3 158.1

Intangibles Balances ($Millions)

Opening Balance 11.5 13.4 15.3 17.3 19.3 21.4 23.5 25.7
Capital Expenditure - Intangibles 2.5 2.6 2.6 2.7 2.8 2.8 2.9 3.0
Amortization - % of Capital Expenditure 25.0% 25.0% 25.0% 25.0% 25.0% 25.0% 25.0% 25.0%
Amortization (0.6) (0.6) (0.7) (0.7) (0.7) (0.7) (0.7) (0.7)
Closing Balance 13.4 15.3 17.3 19.3 21.4 23.5 25.7 27.9

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 Checks
Sub-Section 4.2.
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Sub-Section Cover Notes

Contains error, sensitivity and alert checks.

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Checks
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Error Checks

✘1 Include summary in model name?

Errors Detected - Summary

Total Errors: -
Error Message (Empty if None):

Error Checks

Error Checks Check Include? Flag

Working Capital - Assumptions - Yes -

Accounts Receivable Balances ($Millions) - Yes -
Accounts Payable Balances ($Millions) - Yes -
Assets Balances ($Millions) - Yes -
Intangibles Balances ($Millions) - Yes -

Total Errors: -

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Checks
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Sensitivity Checks

✘1 Include summary in model name?

Sensitivities Detected - Summary

Total Sensitivities: -
Sensitivity Message (Empty if None):

Sensitivity Checks

Sensitivity Checks Check Include? Flag

Total Sensitivities: -

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Checks
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Alert Checks

✘1 Include summary in model name?

Alerts Detected - Summary

Total Alerts: -
Alert Message (Empty if None):

Alert Checks

Alert Checks Check Include? Flag

Total Alerts: -

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 Lookup Tables
Sub-Section 4.3.
SMA 13. Multiple Workbooks - Best Practice Model Example 2
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Sub-Section Cover Notes

Contains model lookup tables.

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Time Series Lookup Tables
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Time Series Lookup Tables

Month Days Names

Month Days LU_Mth_Days

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31

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Time Series Lookup Tables
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Time Series Lookup Tables

Month Names Names

Month Names LU_Mth_Names

January
February
March
April
May
June
July
August
September
October
November
December

Denomination Names

Denomination LU_Denom
$Billions Billions
$Millions Millions
$'000 Thousands
$ Currency

Data Term Basis Names

Data Term Basis LU_Data_Term_Basis

Active Data Periods
Projections Start

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Time Series Lookup Tables
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Time Series Lookup Tables

Periodicity Names

Periodicity LU_Periodicity
Annual Annual
Semi-Annual Semi_Annual
Quarterly Qtrly
Monthly Mthly

Period Type Names Names

Period Type Names LU_Period_Type_Names

Year Yr_Name
Half Year Half_Yr_Name
Quarter Qtr_Name
Month Mth_Name

Periods In Year Names

Periods In Year LU_Pers_In_Yr

1 Yrs_In_Yr
2 Halves_In_Yr
4 Qtrs_In_Yr
12 Mths_In_Yr

Conversion Factors Names

Conversion Factors
10 Ten
100 Hundred
1,000 Thousand
1,000,000 Million
1,000,000,000 Billion

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