To explain how to link projected employee capacity with projected income in Magnifi. This ensures your Capacity Drivers feed into the correct income accounts in the Profit & Loss Projection.
Note: The Capacity Link is not the default position. Most businesses do not use the link so they can compare projected income (based on demand assumptions) with projected capacity. If you turn the link on, projected income will reduce when an employee leaves or their available hours drop, even though the underlying demand may still be unchanged.
When you want to automatically connect projected capacity (from employees) to projected income.
When you need to allocate capacity by individual employee (e.g. each doctor, consultant, or fee earner has their own income account).
Useful for businesses where demand is not a constraint — there is always sufficient demand to support the available capacity.
Avoid using Capacity Link if you primarily want to model demand-driven income and then compare it to your available capacity. In this case, using the link can mask demand assumptions because income will move up or down with staffing changes.
Projected capacity is calculated from Capacity Drivers.
You can link this capacity in two ways:
Link the total effective capacity for all employees to a single Magnifi default income account.
Any new employee added will automatically map to this account.
Link individual employees to separate income accounts.
Example: A medical practice where each doctor’s fees are recorded in their own income account.
In the Profit & Loss, accounts with linked capacity include a breakdown:
Double-click an account to reveal the employee capacity details that make up the total.
⚠️ If you specify a default account at Divisional level, you must also enter default accounts for all divisions to keep reporting consistent.
⚠️ Because income is being driven directly from capacity, if an employee leaves or their hours reduce, the linked income projection will also reduce, even if your demand assumptions have not changed. This is the main reason most businesses leave Capacity Link switched off and instead project income based on demand.
A consulting firm has three fee-earning employees.
The Capacity Drivers calculate each employee’s monthly capacity.
Income is tracked at a total level by linking all employees to the default account Consulting Income.
In the Profit & Loss, Consulting Income shows projected income. Double-clicking reveals the breakdown by employee capacity.
Alternatively:
A medical practice links each doctor to their own account (Dr Smith Income, Dr Lee Income, Dr Patel Income).
This allows actual income to be tracked against each doctor’s projected capacity.
This setup works well where there is always enough demand to fully utilise available capacity.
Use a default account link when all employee capacity contributes to one revenue stream.
Use employee-specific links when income is tracked per individual (e.g. per doctor, consultant, or fee earner).
If using divisional default accounts, make sure all divisions are set up with defaults.
Double-click linked accounts in the Profit & Loss to see a transparent breakdown of employee capacity.
Remember that Capacity Link is not the default setting in Magnifi. Most businesses:
Project income based on demand (e.g. pricing, volumes, pipeline, historical run rates).
Use capacity to check whether the team can deliver that demand.
If you turn Capacity Link on and then an employee leaves (or reduces hours):
Linked income will reduce automatically, because it is tied to capacity.
This may not reflect reality if you expect demand to remain the same and be covered by other team members or future hires.