> For the complete documentation index, see [llms.txt](https://help.modelreef.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://help.modelreef.io/help/financial-outputs-and-valuation/staff-cost-mapping.md).

# Staff Cost Mapping

This article explains how **Staff variables** are mapped in Model Reef.

You will learn:

* How Staff costs appear in the P\&L.
* How staff related timing differences affect payables and cashflow.
* How to structure Staff categories for analysis by team, function or branch.

Staff mapping is a special case of Opex mapping with payroll-aware behaviour.

***

## 1. Staff variables in the P\&L

Staff variables are a distinct type separate from general Opex.

In the P\&L:

* Staff costs are shown in their own section below Gross Profit and alongside Opex.
* Staff costs reduce EBITDA.
* Categories such as `Staff - Engineering`, `Staff - Sales`, `Staff - Operations` can be used to split costs by team or function.

This separation makes labour intensity and team-level investment easy to see.

***

## 2. Staff costs in the Balance Sheet

Staff variables affect the Balance Sheet via **Accounts Payable**.

Rules:

* Staff costs (including salaries, pension or super and payroll tax) are accrued when employees earn them.
* If pay dates fall after accrual dates, the difference creates a short-term payable.
* Super or pension and payroll tax obligations are treated similarly.

Model Reef aggregates these into Accounts Payable, with category detail available when you drill down.

***

## 3. Staff costs in the Cashflow Statement

In the Cashflow Statement:

* Staff costs contribute to **Payments to suppliers** within **Operating cashflows**, together with other Opex and COGS.
* The timing of cash outflows follows pay cycles and obligations as specified in variable timing settings.
* Changing staff payment lags or payroll frequency changes operating cashflow without affecting P\&L accruals.

This helps you see the cash impact of headcount decisions and pay structures.

***

## 4. Designing Staff categories

{% hint style="info" %}
Good practice for Staff categories:

* Match your organisation structure, for example:
  * Engineering or product
  * Sales and marketing
  * Operations and support
  * Administration and leadership
* Keep category names consistent across branches and scenarios
* Use separate Staff variables for materially different roles or pay structures when needed
  {% endhint %}

This enables detailed headcount and cost analysis without cluttering the model.

***

## 5. Staff mapping and capacity modelling

Staff mapping is often combined with capacity-style modelling, for example:

* Headcount per branch, store, clinic or project.
* Capacity hours per FTE and utilisation rates.
* Revenue or project delivery constrained by Staff capacity.

In these cases, Staff mapping in the P\&L is the accounting layer for the economic decisions made in the drivers and operations sections of the model.

***

## Related articles

* [SKU Manufacturing Cost Model](/use-cases/consumer-goods-fmcg-and-cpg-manufacturers/sku-manufacturing-cost-model.md)
* [Build a Staffing Cost Model](/how-tos/operations-and-unit-economics/build-a-staffing-cost-model.md)
* [Current Assets](/help/financial-outputs-and-valuation/current-assets.md)
* [Auto-Validation Rules](/syntax/how-input-fields-work/auto-validation-rules.md)