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.
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.
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.
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.
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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