Calculating Profit/Loss Variance based on What-if Analysis

 

Description:


Finding out the variance of profit or loss by deriving from columns like Actual profit, Actual profit %, Estimated profit, Estimated profit% based on what-if scenarios for sales% and cost%


Example:




UDDC Expression: 


For Calculating Actual profit


GrossSales CostofGoods


For Calculating Actual profit%


((GrossSales-CostofGoods)/GrossSales)*100


For Calculating Estimated Sales (where $Sales_Percentage$ is the global variable)


GrossSales  (( GrossSales $Sales_Percentage$) 100)


For Calculating Estimated Cost (where $Cost_Percentage$ is the global variable)


CostofGoods ((CostofGoods $Cost_Percentage$) 100)


For Calculating Estimated profit


Estimated_Sales – Estimated_Cost


For Calculating Estimated profit %


((Estimated_Sales Estimated_Cost )/Estimated_Sales)*100


For Calculating Profit Variance%


((Estimated_Profit_PercActual_Profit_Perc )Actual_Profit_Perc)

 100



Here we will take an Alcoholic drink example to understand the expressions:


For Actual Profit : (GrossSales – CostofGoods)

-> (68110629 - 51419996) = 16690633.

 

For Actual Profit% :  ((GrossSales CostofGoods) GrossSales) 100

-> ((68110629 - 51419996) / 68110629) = 24.51

 

For Estimated Sales :  GrossSales ((GrossSales $Sales_Percentage$) 100

-> 68110629 + ((68110629 * 24.51) / 100) = 71516161

 

For Estimated Cost : CostofGoods ((CostofGoods $Cost_Percentage$) 100)

-> 51419996 + ((51419996 * 193496) / 100)  = 51934196

 

For  Estimated profit : (Estimated_Sales – Estimated_Cost)

-> (71516161 - 51419996) = 19581965

 

For Estimated profit %: ((Estimated_Sales -Estimated_Cost )/Estimated_Sales) *100 

-> (71516161 - 51934196) / 71516161) * 100 27.38

 

For Profit Variance%:((Estimated_Profit_Perc ActualProfit_Perc) Actual_Profit_Perc) *100

-> (27.38 - 24.51) / 24.51) * 100  = 11.74 


 

Note: This article is based on Smarten Version 5.0. This may or may not be relevant to the Smarten version you may be using.