When you manually create a prediction, one of your prediction option methods is **Formula**. This method provides a wide range of customisation options to support simple and/or complex future events.

You can combine certain accounts, reference certain periods, and even use the powerful 'If' option to create variable predictions based on real-life results.

# Create prediction using Formula method

In a forecast, click

**New prediction**in the top right of the window.Click

**Manual prediction**, then on the**Prediction method**drop-down, select**Formula**.

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# Build your prediction with the formula method

The formula you build is up to you, but there are several steps you need to run through.

## Build your formula

## Build your formula

This section is where you build the formula itself for your prediction.

### Selecting what to reference

### Selecting what to reference

To locate what you'd like to reference in your formula, type **@** to bring up the entire chart of accounts for the relevant organisation.

Using the information in the screenshot above as an example, you could locate:

Individual accounts such as 'Wedding Sales'

Account categories such as 'Income'

Pre-made account groups like 'Online Sales'

**π TIP:** Create account groups in the Chart of Accounts.

Individual predictions like 'Predicted (Wedding Sales)'

### Basic operators

### Basic operators

You can enter the following with your keyboard or with shortcuts in Futrli.

Add ( + )

Subtracting ( - )

Multiply ( * )

Divide ( / )

Alongside these are:

LASTMONTH

LASTYEAR

ON DATE

**π TIP:** Use the *LASTMONTH* option to reference the data from the previous month. You could then, for example, multiply by 1.1 to add 10% to last month.

### Conditionals

### Conditionals

The next level of formula forecasting is creating variable outcome 'if' predictions.

To create an 'if' prediction, click the **IF** option. This creates the base of the formula, ready for you to override:

*IF(condition=true, option A, option B)*

**EXAMPLE:**

In the example below, the formula is going to calculate 20% commission if Income is greater than or equal to Β£50,000, but 10% if it is less than Β£50,000.

**The screenshot below is for comparison purposes only, the first line is what will replace the second line.**

The condition is @Income

The equals is replaced by the variable, in this case greater than or equal to

True for this example is Β£50,000

Option A is the variable if the condition is hit, so Income multiplied by 0.2 to give 20% of the total of Income

Option B is if the condition is not hit, so Income multiplied by 0.1 to give 10% of the total of Income

### Functions

### Functions

A short step to finding commonly required formulas.

To use these pre-built functions, click on the relevant option in question. This creates the base of the formula. You then can add the specifics. The options available are:

*SUM**AVG*

For each, override the condition with what you're looking to reference, then set a date range.

βοΈ **EXAMPLE:**

For this example it is the average of Income between January and June 2022 that you'd like to see.

**The screenshot below is for comparison purposes only, the first line is what will replace the second line.**

## Cash flow payment treatment

## Cash flow payment treatment

Set the cash flow payment treatment. The following options are available:

**Single day payment****Single payment -**Set the date for payment**Multi: in days**- Set varies dates from different percentages on payment**Non cash transfer**- To remove any cash flow impact, select the balancing account

## 'Accounts impacted' and 'Formula values used' tabs

These two tabs enable you to see exactly what the impact of the prediction is going to be.

### Accounts impacted

### Accounts impacted

The **Accounts impacted** tab shows you all accounts that will see movements. This ranges from the initial P&L or Balance Sheet account the prediction is being created against, to the VAT/GST/sales tax, bank, and accounts receivable/payable.

### Formula values used

### Formula values used

The **Formula values used **tab displays any account being referenced in the formula. This is very helpful for sense checking.