What Are Sources?

In financial modeling, it is common to maintain multiple versions of the same data -- a budget prepared at the start of the year, a revised forecast made mid-year, and actual results recorded as the year closes. Sources let you define these named data origin sets so the model can hold all versions side by side and compare them.

Each source represents a distinct origin or version of financial data. When data is imported into the model, every record is tagged with its source, allowing the model to separate, compare, and analyze data from different origins on the same time axis.

The Sources & Adjustments Worksheet

When sources are enabled, the generated Excel model includes a Sources & Adjustments worksheet. This worksheet serves as the central hub for:

• Viewing data by source -- Each source's data appears in its own column group, so you can see Budget figures next to Forecast figures next to Actual figures for every account and period.
• Recording adjustments -- The worksheet provides columns for manual adjustments that reconcile differences between sources.
• Tracking data provenance -- Analysts can trace any number in the model back to its original source.

Settings

Include Sources Worksheet

A toggle that controls whether the Sources & Adjustments worksheet is generated in the Excel model. If your model only has a single data source (e.g., only actuals), you can disable this to simplify the workbook.

When disabled, the model still uses a default source internally, but the dedicated comparison worksheet is omitted.

Worksheet Name

The name that appears on the Sources & Adjustments worksheet tab in the generated Excel workbook. This defaults to a language-appropriate name (e.g., "Sources & Adjustments" in English, "Fontes e Ajustes" in Portuguese). You can customize it if your organization uses different terminology.

Default Source Set

The source that is treated as the primary or baseline data set. When the model needs to pick a single source for calculations (e.g., for the main financial statements), it uses the default source. This is typically your most reliable or most current data set.

Sources List

The list of all defined sources. Each source has:

• Set Number -- A numeric identifier (e.g., 1, 2, 3) used internally to tag data records.
• Name -- A human-readable label (e.g., "Budget", "Forecast", "Actual") that appears in worksheet headers and reports.

You can add new sources, edit existing source names, and delete sources you no longer need. The set number is assigned automatically and ensures stable references even if you rename a source.

Use Cases

Budget vs. Forecast vs. Actual

The most common use case. Define three sources:

| Set | Name | |-----|----------| | 1 | Budget | | 2 | Forecast | | 3 | Actual |

Import each data version tagged with its set number. The Sources & Adjustments worksheet shows all three side by side for every account, making variance analysis straightforward.

Multiple Forecast Revisions

Some organizations produce quarterly forecast updates. You might define:

| Set | Name | |-----|---------------| | 1 | Budget | | 2 | Forecast Q1 | | 3 | Forecast Q2 | | 4 | Forecast Q3 | | 5 | Actual |

This lets you track how forecasts evolved over the year relative to the original budget and final actuals.

Single-Source Models

If you are building a model based solely on historical actuals (for example, a valuation model), you may only need one source. In this case, consider disabling the Sources worksheet to keep the workbook simpler.

How Sources Connect to Other Sections

• Database -- The "Source" column mapping in the Database section tells the engine which column in your data file identifies the data source.
• Accounts -- Account data is imported per source, allowing different values for the same account and period across different sources.
• Scenarios -- Sources and scenarios are complementary but distinct. Sources represent different data origins (where the data came from). Scenarios represent different economic assumptions (what might happen in the future).

Best Practices

1. Name sources clearly. Use names your team already recognizes. "Budget FY2025" is more helpful than "Set 1."
2. Set the default source to your most trusted data. The default source feeds the main financial statements, so it should be the data set you rely on most.
3. Keep the number of sources manageable. Each source adds columns to the Sources & Adjustments worksheet. More than five or six sources can make the worksheet difficult to navigate.