Excel to build commercial model

thiagosouza85 

In general, Power Query could be considered as structured data source for the data model. With help of it you transform raw data in proper way and load to data model. Based on it you could build different reports (PivotTable or structured table or cube formulae) for the scenarios. Parameters of the scenarios also could be loaded into data model by Power Query.

That's in general, evil is on details. 

thiagosouza85 

Building a comprehensive commercial model for project evaluation in Excel is a common practice, and it can indeed become complex as you add more scenarios and variables. To make your model more professional and efficient, you can follow these steps:

1. Data Structuring and Normalization:
• Ensure that your data is structured consistently across all scenarios. Use tables or named ranges to organize your data. This makes it easier to work with in Power Query and PivotTables.
2. Use Excel Tables:
• Convert your data ranges into Excel Tables (Insert > Table). Tables make it easier to reference data and expand it as needed.
3. Power Query for Data Transformation:
• Use Power Query to load and transform your data into a clean format suitable for analysis. Power Query is excellent for cleaning, filtering, and reshaping data.
4. Scenario Manager:
• Excel's Scenario Manager can help you manage and compare different scenarios. Define different scenarios (e.g., Best Case, Worst Case) and input values for each. You can then easily switch between scenarios and see how they affect your model.
5. Data Validation:
• Use Excel's data validation to create drop-down lists for input parameters, making it easier to select scenarios and variables.
6. Data Tables and Goal Seek:
• Excel's What-If Analysis tools, including Data Tables and Goal Seek, can help you perform sensitivity analysis on your model to understand how changes in inputs affect outputs.
7. PivotTables and PivotCharts:
• PivotTables and PivotCharts are powerful tools for summarizing and visualizing data. Use them to create interactive dashboards and reports. You can connect PivotTables directly to your structured data.
8. Dynamic Charts:
• Make your charts dynamic by using Excel's features like named ranges or OFFSET formulas. This allows your charts to update automatically when you change scenarios.
9. Named Ranges:
• Use named ranges to make formulas and references more understandable. Named ranges can also help in creating dynamic charts and reports.
10. Data Model (Power Pivot):
• For more complex models, consider using Power Pivot to create relationships between tables and perform advanced calculations.
11. Scenario Summaries:
• Create summary tables and charts that dynamically update based on the selected scenario. This provides a clear overview of key metrics.
12. Professional Formatting:
• Pay attention to formatting, including fonts, colors, and cell styles, to make your model visually appealing and easy to understand.
13. Documentation:
• Keep detailed documentation within your Excel file to explain how the model works, including assumptions and methodology.
14. Training:
• If you're working in a team, consider providing training or documentation to team members on how to use and understand the model.
15. Version Control:
• Implement version control practices to keep track of changes and revisions to your model.

To further enhance your skills in building professional commercial models, you may want to explore online courses or tutorials specifically tailored to financial modeling in Excel. Many online platforms offer courses on financial modeling that cover advanced techniques and best practices.

Remember that building complex financial models may require time and practice, so don't hesitate to start with a simple version and gradually add complexity as you become more comfortable with the tools and techniques.The text and steps were created with the help of AI.

My answers are voluntary and without guarantee!

Hope this will help you.