Suppose that you want to create a budget but are uncertain of your revenue. By using scenarios, you can define different possible values for the revenue and then switch between scenarios to perform what-if analyses. Show
For example, assume that your worst case budget scenario is Gross Revenue of $50,000 and Costs of Goods Sold of $13,200, leaving $36,800 in Gross Profit. To define this set of values as a scenario, you first enter the values in a worksheet, as shown in the following illustration:
The Changing cells have values that you type in, while the Result cell contains a formula that is based on the Changing cells (in this illustration cell B4 has the formula =B2-B3). You then use the Scenario Manager dialog to save these values as a scenario. Goto the Data tab > What-If Analysis > Scenario Manager > Add.
In the Scenario name dialog, name the scenario Worst Case, and specify that cells B2 and B3 are the values that change between scenarios. If you select the Changing cells on your worksheet before adding a Scenario, the Scenario Manager will automatically insert the cells for you, otherwise you can type them by hand, or use the cell selection dialog to the right of the Changing cells dialog box.
Note: Although this example contains only two changing cells (B2 and B3), a scenario can contain up to 32 cells. Protection – You can also protect your scenarios, so in the Protection section check the options that you want, or uncheck them if you don't want any protection.
Note: These options apply only to protected worksheets. For more information about protected worksheets, see Protect a worksheet Now suppose that your Best Case budget scenario is Gross Revenue of $150,000 and Costs of Goods Sold of $26,000, leaving $124,000 in Gross Profit. To define this set of values as a scenario, you create another scenario, name it Best Case, and supply different values for cell B2 (150,000) and cell B3 (26,000). Because Gross Profit (cell B4) is a formula - the difference between Revenue (B2) and Costs (B3) - you do not change cell B4 for the Best Case scenario. After you save a scenario, it becomes available in the list of scenarios that you can use in your what-if analyses. Given the values in the preceding illustration, if you chose to display the Best Case scenario, the values in the worksheet would change to resemble the following illustration:
Use Excel Scenarios to store several versions of the data in a worksheet. For example, create 2 different budgets - best case and worst case. Download the sample file and watch the video or follow the written instructions Author: Debra Dalgleish
Create First Excel Scenario
Create Second Excel Scenario
Show an Excel ScenarioOnce you have created Scenarios, you can show them. In this example, the Finance scenario is currently visible. To change to a different scenario:
Add Scenario to Excel RibbonAn easier way to switch between Scenarios, is to add a command to the Ribbon. Follow these steps, to add a Custom Group, and put the Scenario command in that group.
Spending Scenarios - Low, Mid, HighFor holiday spending this year, what is your best case scenario? Do you have a big budget to spend for the holidays? Or, in your worst case scenario, will you spend as little as possible? Or will your holiday budget be somewhere in the middle? You can use Excel Scenarios to store several versions of a budget, and compare the results. In the steps below, see how to set up a worksheet where you can compare three scenarios for holiday spending. Set Up the WorksheetThe first step is to set up the worksheet. Some of the cells will be the same in each Excel scenario, and other cells will change. Note: There’s a limit of 32 changing cells in an Excel Scenario.
Create the First ScenarioThe first scenario is for Extravagant spending, which will contain the highest amounts.
Add the Scenario ValuesThe Scenario Values dialog box opens, with a box for each changing cell. It automatically displays the current value in each changing cell. You could modify one or more of the existing values, or leave them as is. We’ll make the Gifts – Family amount a bit higher, and leave the other values untouched.
Create Another ScenarioYou can add more scenarios by changing the worksheet values, and following the steps that you used to build the first scenario. Or, you can add an Excel scenario directly into the Scenario Manager.
Show a ScenarioOnce you have created the Excel Scenarios, you can show them. On the worksheet, the original values for Extravagant scenario are showing. To change to a different scenario:
Show Excel Scenario SummaryAfter you create the Excel Scenarios, you can view them in an Excel Scenario Summary report. These scenario reports let you see the values and totals side-by-side, for an overall comparison. Note: The Excel Scenario Summary does NOT update automatically if you change the scenario values. You can delete the old summary and create a new one. To create a Scenario Summary:
A Scenario Summary sheet is added to the workbook.
Improve the Scenario SummaryIn the Scenario Summary shown above, the changing cells are shown as addresses. If you name the value cells, the Scenario Summary will show those names, instead of the cell addresses You could change the colour scheme too, unless you love grey and purple! Get the Sample FileGet the zipped sample Excel Scenario file, with the Marketing and Finance example. The zipped file is in xlsx format, and does not contain any macros More Scenario TutorialsScenario Summaries Automatically Show Scenarios Scenarios -- Programming Scenarios Excel 2003 |