“If you can’t describe what you are doing as a process,
you don’t know what you’re doing”
W. Edwards Deming

Creating and using links in FAST financial models

Links are a core component in FAST financial models.

This guide explains what they are for, how to create them and how to use them.

Comments

  1. Col Delane says:

    I’m a little confused about an apparent contradiction in FAST in regard to locating inputs in a single/central location, sheet structure, calculation blocks, and avoiding the use of daisy-chains.
    Let’s day I have a constant (e.g. Sales Tax rate), I would locate it in the first instance on my model’s Inputs sheet.
    If I then need to utilise this constant at several locations on a calculation sheet (say Revenue), should I:
    (a) in all cells in the time-series where Sales Tax is to be calculated (e.g. Sales Tax Payable) link each cell directly to the cell on Input (does not provide great transparency or visibility of the constant at the location where the constant is used),
    (b) in the Constants column, create a single link to the cell on Input, and then link each cell in the time-series to this intermediate cell (aka a daisy-chain!), or
    (c) in the Constants column, enter the constant value, and then link each cell in the time-series to this intermediate cell (does not comply with locating inputs centrally!)?

    Cheers
    Col

    • Col – the answer is (d). And I’ll do my best to use your language:

      If I then need to utilise this constant at several locations on a calculation sheet (say Revenue), should I:
      (d) in each calculation block where I use the constant, create a single link to the cell on Input and then refer in my calculation’s formula to this link.

      Note the difference between (i) a link to a link (aka a daisy chain) and (ii) a formula at the bottom of a calculation block that includes a cell reference where the cell referred to is a link. (i) is best avoided – for the reasons set out in the guide; (ii) is fine.

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