Income Drivers
What are Income Drivers?
Income Drivers allow you to project the income at a more detailed level. For example, a business selling product may project the income based on # products x avge $/product or a business selling 'labour' may project based on # hours x avge $/hour x % utilisation. It is not compulsory to use Income Drivers.
How do I enter Income Drivers?
The Income Driver worksheet is structured based on;
# Units x
$/Unit x
% Completion Rate
You can enter the values against the drivers and use the Copy Across feature to copy values across to future months. It is not compulsory to enter the % completion - this can be left at 100%.
The example above reports a total for the year based on 205 units (average for the year) x $6,000/unit (total for the year). If you click on the switch icon (next to # units), it will re-calculate the total to be 2,460 units (total for the year) x $500/unit (average for the year) as shown below
How do I change the Driver & Conversion Types
The # Units & $/Unit are referred to as a Driver Type and the % Completion Rate is referred to as a Conversion Type. You can rename these types by clicking on "Edit Driver Types" and "Edit Conversion Types" which appears at the bottom of the Income Driver page.
Once added, the new title will appear in the drop down box.
When adding a new Conversion %, you do not need to add the % at the end of the name. Eg, to add Occupancy %, simply add Occupancy.
How do I remove Income Drivers without removing the Account?
If you enter '0' in the # Units row, the total income will be $nil and Magnifi will assume that Income Drivers are not being used. The account will remain in the Profit and Loss Projection and you can manually enter income values against this account if required.