Mapping Categories
This article explains how to map imported rows into reporting categories and why this matters for P&L, Balance Sheet, Cashflow and custom reports.
You will learn:
What categories are and what they are not.
How categories relate to variable types.
How to design a simple but powerful category structure.
How to update categories after import.
What categories are
Categories are labels used to organise variables in reports and dashboards. They control:
Which section of the P&L a variable appears in.
How costs are grouped under headings such as
MarketingorOperations.How assets and liabilities are grouped in the Balance Sheet.
How different flows appear in the Cashflow Statement and Cashflow Waterfall.
Categories do not change the underlying accounting behaviour. That is controlled by the variable type.
Categories versus variable types
Variable type answers: what is this financially?
Revenue, COGS, Opex, Staff, Tax, Asset, Liability, Equity, Dividend.
Category answers: where does this sit in my reports?
Revenue - Subscriptions.
Revenue - Services.
Opex - Marketing.
Opex - Technology.
Assets - Property.
Liabilities - Bank Debt.
Two variables with the same type can have different categories. For example:
Opex - MarketingandOpex - Rentare both Opex type, but show under different P&L lines.
Designing a category structure
A good category structure is:
Simple enough that stakeholders can read it easily.
Consistent across models and branches.
Stable over time to avoid breaking reports every year.
Flexible enough to support the level of detail you need.
Typical P&L categories:
Revenue - SubscriptionsRevenue - ServicesCOGS - Direct CostsOpex - MarketingOpex - ProductOpex - OperationsOpex - G and AStaff - SalariesStaff - Contractors
Typical Balance Sheet categories:
Assets - CashAssets - ReceivablesAssets - PropertyAssets - OtherLiabilities - Trade PayablesLiabilities - LoansEquity - Share CapitalEquity - Retained Earnings
You can extend these lists as needed but avoid overly granular category lists where every variable has a unique category.
Mapping categories during import
When you map imported rows you will usually see:
A proposed category based on the row label and type.
A drop down list to choose another category or create a new one.
You should:
Confirm categories for material lines.
Use existing categories whenever possible to keep reports parsimonious.
Reserve new categories for genuinely new types of items.
You can always refine categories later once you see the statements and custom reports using them.
Updating categories after import
This makes it possible to improve your reporting structure over time without starting again.
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