Financial analysis in a business case involves entering values like costs, quantities, and durations. Manually updating these values can be tedious and error-prone. Parameter offers a powerful solution, allowing you to save time, improve accuracy, and ensure consistency across your analyses.
Key Concepts
Parameters: User-defined variables within a financial analysis. They act as placeholders for specific values, allowing for easy updates and dynamic calculations.
o Saves Time: Instead of manually updating constant values throughout your analysis, you simply change the parameter value, and the entire analysis recalculates automatically.
o Improves Accuracy: Reduces the risk of errors that can occur with repetitive manual edits.
o Ensures Consistency: By using global parameters for standard values across multiple analyses, you guarantee consistency in your calculations.
Local Parameters: Represent values relevant only to a specific financial analysis. They are created within the analysis itself.
Global Parameters: Hold consistent values across multiple analyses. They are created and managed in a central location.
Parameter button: Has a label icon beside a field in a financial analysis component or activity.
Instructions
Adding/Creating Local Parameters:
a. Navigate to the Parameters tab within your financial analysis.
b. Click Add Parameter.
c. Enter a clear and descriptive Parameter Name (e.g., "Cost"). This helps identify the parameter's purpose.
d. Select the appropriate Type for the value (e.g., Decimal, Integer, Date).
e. Enter a default Value for the parameter.
f. Add parameter values by sensitivity scenarios.
g. Click Save.
Alternative: While editing an activity in the Gantt chart, you can add a parameter on the fly:
a. Click the parameter button next to the desired field.
b. In the User Defined tab, click Add Parameter.
c. Enter the Parameter Name and Value.
d. Click Update.
Defining Global Parameters:
a. Go to Administration > Configuration > Parameters. This is where you manage values used across multiple analyses.
b. Click Add Parameter.
c. Enter a clear and descriptive Parameter Name (e.g., "Global Rate").
d. Select the appropriate Type for the value.
e. Enter a Value for the parameter.
f. Add parameter values by sensitivity scenarios.
f. Click Save.
Defining Company Specific Global Parameter:
Go to Administration > Configuration > Parameters.
Click Add Parameter.
Enter a clear and descriptive Parameter Name.
Select the appropriate Type for the value.
Enter a Value for the parameter.
Select the Scope as Company.
Click on the Settings Icon.
Click Add.
Select a Company, and the Value specific to the company.
Repeat steps h-i as needed, depending on your requirements.
Click Update.
Click Save.
Using Parameters in Your Analysis:
a. Replace constant values with parameters for a dynamic and efficient analysis.
b. Click the parameter button next to the desired field in your financial analysis.
c. A dialog box will appear, allowing you to choose an existing parameter.
d. Select the appropriate parameter from the User Defined (local) or Global tab.
e. Click Save to apply the parameter.
Remember:
Clear and Accurate Naming: Use descriptive parameter names to avoid confusion.
Double-Check Values: Verify parameter values before finalizing calculations to prevent errors.
Update Global Parameters with Caution: Changes will impact multiple analyses. You will need to manually recalculate a financial analysis for a change in the global parameter to apply.