Aggregate Categories

This article explains aggregate categories in Model Reef and how to use them to create higher level reporting groupings without changing your underlying variables.

You will learn:

  • What aggregate categories are.

  • How they differ from categories and subcategories.

  • How to create aggregates for common reporting needs.

  • How they appear in reports and dashboards.

Aggregate categories let you build flexible reporting groupings such as "Operating Costs" or "Non Cash Items" without reclassifying variables or changing the core model structure.


1. What aggregate categories are

An aggregate category is a reporting construct that groups together:

  • Multiple categories.

  • And optionally their subcategories.

For example, you might define aggregates like:

  • Operating Costs

    • Includes: COGS - Direct, Opex - Marketing, Opex - Staff, Opex - Other.

  • Non Cash Items

    • Includes: Depreciation, Amortisation, and similar categories.

  • Cash Costs

    • Includes: all cost categories except non cash items.

Aggregate categories do not hold variables themselves. They simply sit above existing categories as a summarised view.


2. Aggregate categories vs categories vs subcategories

Key differences:

  • Categories

    • Directly assigned to variables.

    • Define where a variable appears on statements.

  • Subcategories

    • Optional detail inside a category.

    • Provide granular breakdowns within that category.

  • Aggregate categories

    • Never assigned directly to variables.

    • Created by grouping existing categories for reporting.

    • Can be changed without touching underlying variables.

This three level setup lets you keep your variable mapping stable while still adding new high level views.


3. Typical use cases for aggregate categories

Common patterns include:

  • Operating costs vs non operating items

    • Aggregate multiple Opex categories into Operating Costs.

    • Keep interest and tax in separate aggregates.

  • Cash vs non cash

    • Aggregate depreciation and amortisation into Non Cash Expenses.

    • Aggregate all other costs into Cash Costs.

  • Regulatory or investor formats

    • Create aggregates that match how lenders, investors or regulators expect to see your statements.

    • Keep your internal category scheme more detailed, and map into aggregates only for external views.

  • Segmented reporting

    • Build aggregates for Customer Acquisition, Retention, General Overheads using different mixes of categories and subcategories.


4. Creating and maintaining aggregate categories

1

Give the aggregate a clear, descriptive name

Use a business-friendly name that will make sense on reports (for example, "Operating Costs", "Non Cash Expenses").

2

Select which categories (and optionally subcategories) belong to it

Pick existing categories and, if needed, specific subcategories to include in the aggregate.

3

Save the configuration so it can be reused across reports and dashboards

Saved aggregates can be reused and referenced by reports and dashboards without changing variables.

You can change the composition of an aggregate at any time:

  • Adding or removing categories updates all reports that reference that aggregate.

  • Underlying variables and their categories do not change.

This makes aggregate categories a safe tool for evolving your reporting layout without destabilising the model.


5. Using aggregate categories in reports and dashboards

Aggregate categories are most useful in:

  • Summary P&L or management reports

    • Show a compact view like: Revenue, Gross Profit, Operating Costs, EBITDA, Non Operating Items, Tax, NPAT.

  • Board and investor packs

    • Present a high level breakdown that matches how your audience thinks, without exposing all detailed categories.

  • Dashboards

    • Create charts and KPI cards that focus on key aggregates, such as Operating Costs as a percentage of Revenue.

Under the surface, everything is still driven by categories and subcategories, so you always have the option to drill down.


6. Designing aggregates that will last

When creating aggregate categories, aim for:

  • Names that reflect business logic, not internal code names.

  • Groupings that are meaningful to your core stakeholders.

  • Stability over time so that trends are comparable across periods.

  • A small number of aggregates in any single view to avoid clutter.

Think of aggregates as products of your reporting requirements rather than as changes to the underlying accounting logic.


Last updated