Similar to the product side we now build our Service side sub-model regarding our gross profit.
Gross Profit Services
We start off once again by creating the nodes “Gross Profit”, “Revenue” and “Services” and summing the latter two. If you have any doubts about how to do it, just have a look at 3. MDE Products' first step once more.
We continue defining our revenue services, by multiplying our "Volume" holding the number of projects with our "Daily Rates" and our "Billed Days per Project type".
'Volume Services' * 'Daily Rates' * 'Billed Days per Project Type'
Similar to the revenue we also receive our COGS by multiplying three nodes. This time we need the "Internal Cost Rate" describing the internal cost per consulting day and multiply it by the "Billed Days per Project Type" and our "Volume".
'Volume Services' * 'Internal Cost Rate' * 'Billed Days per Project Type'
Similar to 3. MDE Products, we once again connect the lowest nodes to our drivers and base data. Once again, you need to use the basic 4 formulas we learned before. You can use this as a training opportunity to figure out the solution yourself. Once you are ready, you can compare it with our solution.
Use the nodes 'Base Data'.'Base Data Total Revenue' & 'Base Data'.'Base Data Billed Days' to calculate the daily rates and project them into the future.
Load in the 'Drivers'.'Volume' node, but keep only "Services" from "ProductGroup" . (Volume node does not need to get projected.)
Billed Days Per Project Type
Load in 'Base Data'.'Base Data Billed Days per Project Type' and project them into the future
Internal Cost Rate
Take the 'Base Data'.'Base Data Internal Cost Rate', switch the sign of data inside and project it with 'Drivers'.'Merit Increase' as a driver
ROLLFORWARD('Base Data'.'Base Data Total Revenue' / 'Base Data'.'Base Data Billed Days per Project Type')