# Variable Type

This article explains the **Variable Type** field in Model Reef.

You will learn:

* What each variable type represents.
* How type affects P\&L, Balance Sheet and Cashflow.
* When to change a variable's type and when not to.

Variable type is one of the most important structural fields in the model. It controls accounting behaviour, not just labelling.

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### What a variable type is

Every variable in Model Reef has a type, for example:

* Revenue
* COGS
* Opex
* Staff
* Tax
* Asset
* Liability
* Equity
* Dividend

The type tells the engine:

* Which statements the variable affects.
* How accrual and cash movements translate into receivables, payables, assets, loans or equity.
* Where the variable appears in P\&L, Balance Sheet, Cashflow and Cash Waterfall.

Changing type can materially alter model outputs.
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### Where to set variable type

You set or view the type in:

* The **Variable Editor** header.
* The **import mapping** step when creating variables from PDF, Excel, Xero, QuickBooks or CSV.
* The **Data Library** when reclassifying central entries that feed variables.

The type is always visible alongside the variable name for clarity.
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### Behaviour by type (summary)

Each type has built-in behaviour:

* **Revenue**
  * Increases P\&L revenue.
  * Creates Accounts Receivable when delayed.
  * Drives top line in Cash Waterfall and valuation.
* **COGS**
  * Reduces gross profit.
  * Creates Accounts Payable when delayed.
* **Opex**
  * Reduces EBITDA.
  * Creates Accounts Payable when delayed.
* **Staff**
  * Special Opex with staff specific payables behaviour.
* **Tax**
  * Generates tax expense and tax payable.
* **Asset**
  * Creates Assets and depreciation.
  * Cash outflows are investing cashflows.
* **Liability**
  * Creates loans and interest.
  * Drawdowns and repayments go through financing cashflows.
* **Equity**
  * Creates share capital and cash inflows.
* **Dividend**
  * Reduces retained earnings and cash.

The modelling engine applies these rules automatically once type is set.
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### When to change type

You should change type when:

* A variable was misclassified during import.
* The economic role of a variable has genuinely changed (for example an expense should now be treated as an asset).

When you change type:

* All historical and forecast periods for that variable adopt the new behaviour.
* Output statements and dashboards update instantly.

For large changes, add a note so reviewers understand the reason for reclassification.
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### Type and validation

Model Reef may warn you if:

* You change type from one major group to another (for example Opex to Asset).
* The type is inconsistent with linked categories or mapping.

These warnings are there to prevent accidental structural changes that alter accounting treatment.
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## Related articles

* [Selecting Driver Type](/syntax/drivers-syntax/selecting-driver-type.md)
* [Variable Editor Screen](/syntax/variables-syntax/variable-type.md)
* [Manual Variable Entry](/help/importing-and-data-inputs/manual-variable-entry.md)
* [Build a Full Financial Model from Scratch](/how-tos/core-modelling/build-a-full-financial-model-from-scratch.md)


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