FO Types (Financial Object Types)

Unlike a spreadsheet, the software uses discrete components, or FO Types, to create financial models. Each FO Type is completely customizable, allowing you to add additional parameters and the associated logic for how it fits into, and works with, the model.

Every Financial Object has a "primary" line item defined by its type. A User Defined Line Item's primary line item is titled Amount or Balance (which can be retitled in any extension). Each FO consists of:

A set of specific parameters that are unique to it, grouped together in a Parameter Block.
A set of rules that define how it is related to all other FOs and to the model itself.

The combination of these rules and specific parameters allows the FOs to be assembled automatically and correctly, every time.

One way to think about a FO Type is as a template. Each template can have as many instances as needed. An FO Instance An FO Instance inherits all parameters and any logic(formulas) contained in the FO. Any change in the FO is immediately updated in all instances. inherits all parameters and any logic (formulas) contained in the FO Type. Any change in the FO Type is immediately updated in all instances.

Each model uses a set of basic FO Types. Additional FO Types are added based on the object libraries included with your model.

Working with FO Types

FO Types can be used as is, extended, or copied.

If you plan to only use the existing FO Types, there is nothing you need to do to start building your model (see Creating an Instance).

Extending and Copying FO Types

Extending - When you extend an existing FO Type, the extension inherits all of the parameters and logic of the original. In effect, you can create a chain of FO Types, each inheriting all aspects of its parent.

For example, if you click on the Basic Income FO, click Add, and then Extend FO Type, a new FO Type will be created that is an untitled extension of Basic Income. Notice that if you click on its Add button, you can further extend this FO Type (although this would be pointless as they are identical). However, you will also see in the add list that you can create a Line Item, a Constant, a Hub a Connection, or a Text Parameter.

One of main advantages of extending an FO Type is that you can chain functionality. The example below shows how one might structure a series of FO Type extensions for increasing levels of functionality. As each FO Type is an extension of the previous, they become interchangeable. If at any stage a copy is made, the copy starts a new chain that is independent of the original.

Line Items Basic Other Asset Other Asset Other Asset Purchase Other Asset Purchase and Sale

Balance X X X X

Amortization X X X

Accumulated Amortization X X X

Gain/Loss X X X

Purchase Date X X

Purchase Price X X

Amortization Periods X X

Days before Starting Amortization X X

Sale Date X

Sale Price X

Line Items	Basic Other Asset	Other Asset	Other Asset Purchase	Other Asset Purchase and Sale
Balance	X	X	X	X
Amortization		X	X	X
Accumulated Amortization		X	X	X
Gain/Loss		X	X	X
Purchase Date			X	X
Purchase Price			X	X
Amortization Periods			X	X
Days before Starting Amortization			X	X
Sale Date				X
Sale Price				X

Creating logic

Any logic you add to a FO Type is shared by all of its instances, as well as any extensions of the FO Type. The logic can also be summarized and shown in the FO Type panel using annotations.

Creating an Instance

To create an instance of an FO in your model, navigate to the appropriate category under the Model Content branch of the Organization Tree and right-click on it. In the pop-up menu, click Add and select the FO Type from the list.

For example, to create a Basic Income instance, go to Model Content > Income Statement/Revenue, right-click to Add and select Basic Income. An instance will be created and opened in a new panel on the right. Notice that Basic Income has a single parameter: Revenue.