TM1 Forum

Hi - I am a complete newbie to TM1 and am attempting to learn the software myself by building a basic profit and loss model, however cannot seem to get the program to report the correct Net Profit (Loss)

I understand that TM1 achieves this via aggregation/parent child relationships. Also I am under the assumption that weightings of the elements also builds the logic for what will contribute positively and what should be subtracted. Is this the case?

So far I have

SALES which is a roll-up of:
License sales
Consultancy
Support
Other
Internal Recharges
Deferred Income

and

COSTS

which include around 22 elements such as Wages, Rent and Rates etc.

The structure appears as:

Name Weight
Total of Lines
Net Profit (Loss) 1.0.......Main Parent
Sales 1.0.......Parent of LS, LMC, Consultancy, Support and Other
License Sales 1.0.......Child of Sales
License Maintenance Sales 1.0.......Child of Sales
Consultancy 1.0.......Child of Sales
Support 1.0.......Child of Sales
Other 1.0.......Child of Sales
Costs 1.0.......Parent of Support, internal recharges, wages, etc.
Support 1.0.......Child of Costs
Internal recharges 1.0......Child of Costs
Wages 1.0......Child of Costs
etc. 1.0......Children of Costs

This is in one of the dimensions of the cube. In the other dimensions the hierarchy does not look like this.
thank you for any help you can provide.

This depends on signage of your values. Currently how have both your income and expenses contributing posatively to your profit. This will only work your costs are negative. If your costs are posative then you'll need to flip the weighting. (Think about how you'd add / subtract in Excel)

I hope this helps,

Jim.

Dear Jim:
Thank you for your help.
Kind regards,
Donna