Use scenarios with a row model to evaluate different assumptions without changing the base plan or forecast.
A scenario can contain a single driver or multiple drivers simulated at the same time. Use the tree layout to visualize how simulated driver values flow through the row model and affect dependent rows. Each scenario provides a separate simulation layer, so changes in one scenario don't affect the base plan, forecast, or other scenarios.
In this example, use Forecast as the baseline series and PY Actuals as the comparison series to generate and assess different forecast assumptions against the previous year's actuals. You'll create three scenarios in the tree layout to evaluate upside, downside, and balanced business conditions. Then, you simulate different combinations of drivers in each scenario and compare their potential impact on the forecast.
Before you create a scenario, make sure that:
In this section, you create and configure the tree layout to structure your data and simulate different scenarios by adjusting driver values.
The tree layout aggregates values across the entire period available in the planning sheet. Use the time period selector to select the year or period you want to include in the tree.
Create a scenario by following the steps above. Name the scenario Best Case and configure the driver values to simulate favorable business conditions.
The row model recalculates dependent values as you change the drivers, so you can see the cascading impact of the assumptions in the tree layout.
Create another scenario named Worst Case to evaluate unfavorable business conditions.
The worst-case scenario remains separate from the best-case scenario and the base plan.
Create a Balanced Case scenario by applying moderate changes to Revenue and Expense drivers to review their impact on the profit.
In the tree layout, select a node to analyze the impact of the simulation on that node. Use the available Graph and Table views to review the trend, simulation details, simulation impact, variance, and dependents for the selected node.
After creating the scenarios, compare their outcomes to understand how the different assumptions affect the forecast.
Consider a scenario that focuses on cost optimization, and you name it Cost Optimized. The following image compares the Cost Optimized scenario with the Balanced Case and Best Case scenarios.
The comparison displays the values for the selected scenarios and the variance between them. Positive and negative variances help you identify how the assumptions change the forecast outcome.
After evaluating different scenarios, you can copy the assumptions and simulations from a specific scenario to the base scenario. This makes the selected scenario the new baseline, so you continue to simulate additional changes from it.
To set a simulated scenario as the new baseline, select the vertical ellipsis next to the scenario name, and then select Copy to Base. This copies the selected scenario's simulations to the base scenario.
Scenario analysis in the row model makes you understand how different assumptions influence overall business outcomes. By simulating driver changes and tracing their impact through the row hierarchy, you can evaluate potential outcomes, compare alternatives, and make informed planning decisions without affecting the underlying plan.
