Scenario modelling is a key component in forecasting and planning for the future as it allows you to understand the impact of a certain event, which leads you to make solid business decisions and implement sound strategies in case it is realised. 

You can use Castaway to model different scenarios in 2 ways:

  1. Through another element
  2. Via the Forecast Data Template


1. Through another element

You can apply a what-if condition against a specific element by modelling it through another element. For example, you anticipate that rent will double due to market conditions and you'd like to understand how that will impact your finances without setting it as your real forecast.

To model this, you'll need to create 2 Cost elements:


Office Rental

  1. Enter your forecast rent expense (without any scenario modelling)
  2. Select Save & Close to exit


Used to apply the effect of the scenario i.e. 100% increase against the current rent expense

  1. Change the Expense Method to % of Expenses
  2. In the Element Selector, choose to link to Office Rental so that we can start applying a % change to the forecasted rental expense
  3. In the Element Editor, enter 100% in the Link row for the relevant months to model the doubled expense
  4. Select Save & Close to exit

What if scenario.png

Once you've modelled this, review your Reports in Analysis to observe how this will impact the rest of your financial statements. If the impact is significant, you'll be able to begin planning contingencies to prepare for this potential outcome. 



The What-if element may be unpleasant to view in your Chart of Accounts or Reports. By creating a Sub-section, you'll be able to arrange these elements to report under a single Sub-section heading, which will allow you to collapse and minimise these accounts.


2. Via the Forecast Data Template

The Forecast Data Template is a flexible and versatile tool. While its main purpose and design is to help users quickly upload and manage their forecast information in one space, the template has many other uses. One of which is for scenario modelling. 

Enter and upload different forecast information into the template for different scenarios to generate their respective 3-way forecasts.

For example, your manufacturing outlet is limited by resources such as labour and machinery. Using the Forecast Data Template, you can generate scenarios based on increasing your labour force or purchasing more machines or both to understand the impact of these events to your main forecast. To revert back to the original forecast, you can always import the original template.