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_Perc- Actual_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.