Overview
Driver elements are a simple but powerful element type in Castaway. They introduce non-financial data into a forecast and support a wide range of advanced modelling tasks. Driver elements can be used in three main ways:
- To calculate forecast data within other elements
- To add insights to reporting
- To enable variance analysis of non-financial data
Adding a Driver Element
- Navigate to Forecast > Element Settings. If using an Excel Integration, navigate to Forecast > External Sources > Map (under Connect to your source).
- Collapse the P&L and Balance Sheet sections by selecting their respective headers, then scroll to the bottom of the chart of accounts to locate the Drivers section.
- Hover over the Drivers header and click the + icon to add a new Driver element.
- Rename the Driver and press Enter to save.
Driver Element Properties
Once a Driver element is created, the following properties can be configured:
| Property | Purpose |
|---|---|
| Driver Input Method | Controls how data is entered for the Driver |
| Rounding Treatment | Applies rounding to Driver values |
| Constraints | Sets maximum, minimum, or maximum and minimum limits on Driver values |
| Cumulative Method | Sets whether the Driver is non-cumulative or cumulative |
Using Drivers to Calculate Forecast Data
Most Castaway element types offer Driver-based calculation methods. Examples include:
| Method | Example |
|---|---|
| Driver x Rate | Record headcount of salespeople as a Driver and set the rate as expected monthly sales per salesperson |
| % of Drivers | Record total Funds Under Management as a Driver and set the rate as the percentage administration fee collected |
| Formula | Calculate coffee shop revenue by multiplying three Drivers: number of trading days per month, number of coffees served per day and selling price per cup |
Beyond these examples, Driver elements can also be used as inflation indices, as control switches for scenario modelling, or for calculating complex constraint-based production volumes.
Drivers in Reporting
Driver elements can enhance reporting in three ways:
Drivers Report
Found under Analysis > Key Reports > Drivers, this report displays the values of each Driver in your forecast. It is an effective way of presenting the assumptions underlying your forecast.
Report Formulas
Driver elements can be used to calculate custom Report Formulas, which can then be displayed on any of Castaway's key financial reports. Report Formulas are well suited to reporting KPIs, key metrics, bank covenant ratios and operational data.
Dashboards
Driver elements and Report Formulas based on Drivers can be added to any widget available on Dashboards. Select Driver elements from the Drivers Report list on the Add Data screen, or select Report Formulas from the report they were originally added to.
Drivers in Variance Analysis
Actuals data can be entered for Driver elements, enabling variance analysis of non-financial data. Where actuals are entered, variances will be displayed in the Drivers Variance Report ( Analysis > Variance Reports > Drivers Variance) and in any Report Formulas based on those Driver elements.
To enter actuals data for Driver elements manually , go to Forecast > Actuals Data > Other Data. Actuals data for Drivers can also be imported via an Excel Integration.
Actuals must be enabled in the forecast before actuals data can be entered for Driver elements. Refer to the article 'Managing Actuals' for guidance.