Adjustment effects and source lineage

Methods and settings

Choose what the adjustment means

Group effect is separate from the component’s calculation method. A Flow / carry forward group changes supported period economics and the state used by later periods. A Normalization group compares adjusted results against the reported/flow basis without treating every normalization as a recurring replacement of the original forecast.

Choose the effect according to the question. A normalized profitability comparison is different from modeling a permanent cash-generating change. Review the resulting cash, balance and future-period bridge rather than judging the setting solely by one EBITDA number.

Enter the economic sources once

Synthetic group: Revenue +500 and COGS +300 create Gross Profit +200. The linked EBITDA and EBIT effects follow from the model. Do not also enter +200 as a direct Gross Profit or EBITDA component merely to make the bridge look complete.

Expense components use cost signs: a positive expense increases the deduction. The bridge reports impacts in statement signs. Tax, working-capital limits and financing interactions can make the full impact differ from a simple percentage calculation. Inspector can show the direct component and its linked contribution.

Direct subtotal components have classifications

A direct Gross Profit adjustment is classified through COGS. A direct EBITDA adjustment uses other operating income or expense. An EBIT-only adjustment works through D&A so EBITDA remains unchanged. These are explicit supported classifications, not a universal instruction to change any upstream business assumption.

If the economic change is really additional sales, use Revenue. Its ratio-driven working capital may react differently from a direct EBITDA adjustment. Explicitly scheduled AR, Inventory or AP balances need their own component where they should change; the model does not silently rewrite their independent schedules.

Reconcile, display and recover

Reported values remain the anchor. Adjusted values and ordered linked contributions reconcile through the connected calculation, including nonlinear tax, funding and available-flow effects. Group display can combine related components at an eligible subtotal; it does not change their underlying ownership.

Global Adjustments Off makes adjusted values equal reported while preserving stored settings. Group disable affects that group; collapsing only hides detail. Review the chosen basis in Value, Credit or Analyze after changes, because an adjusted target and an unadjusted comparison answer different questions. This layer is not a general journal ledger or a substitute for correcting an erroneous reported input.