5. MDE OPEX
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We now proceed to create our final submodel, which contains our operating expenses.
OPEX
Operative Expensive (OPEX) are in our case modeled as the sum of the three nodes: "M&S", "R&D" and "G&A": (Marketing & Sales, Research and Development, General & Administrative)
Splitting costs into Personnel and Non-Personnel and their Projection
Once again, you have the chance to train ROLLFORWARD projections, this time also with transforming the personnel split into non-personnel split with ADDEACH formula as described in 3. MDE Product.
Try to use the description to create your functions and when ready, have a look at the solution
| Nr. | Node | Description |
|---|---|---|
| 1. | M&S Personnel Cost | Switch the sign of \'Base Data\'.\'Base Data M&S\', use \'Drivers\'.\'M&S Personnel Split\' to calculate the personnel part of costs. Roll it forward afterwards with \'Drivers\'.\'Merit Increase\' as a driver. |
| 2. | M&S Non-Personnel Cost | Transform the \'Drivers\'.\'M&S Personnel Split\' into the non-personnel split. Apply the result to |
| 3. | R&D Personnel Cost | Same logic as 1 with nodes: |
| 4. | R&D Non-Personnel Cost | Sames logic as 2. with nodes: |
| 5. | G&A Personnel Cost | Same as 1. with nodes: |
| 6. | G&A Non-Personnel Cost | Same as 2. with nodes: |
If entered correctly, your model should look somewhat like this:
Next Step
Now that you have created all five sub-models you should have a fully functional Profit model for a multinational diversified enterprise covering all three important areas (Product, Services, Operating Expenses). Let\'s combine it quickly into a final profit and loss model in P&L which won\'t take you more than 3 minutes.
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