Validating a Model

Strategic Modeling includes a Model Validation tool that evaluates a model for common issues that can impact a model's performance.

Resolving reported issues helps ensure that the model follows guidelines that lead to optimal performance. It’s especially helpful when a model can’t be calculated due to a circular reference—the model validation log file includes the sequence of cells that produce the circular reference.

To use the Model Validation tool:

1. From the Home page, click Strategic Modeling, and then click Models.
2. Open the model you want to validate.
3. From the Actions menu, select Validate Model, and then click Continue to generate the report.
4. Specify the location for the file, and then click Save.
5. Review the file, and then resolve the reported issues.

The Model Validation tool checks for the following issues.

Reforecasting in the Balance Loop

The Model Validation tool calculates at least one scenario in the model and reports in the log if a balancing loop is executed more than once for any given time period.

Excess balancing loops can occur when a model contains months and or quarters where the values depend on a year-end value that is affected by changes in the balancing loop that is used by Funding Options, such as with tax forecasting. For example, it's impossible to know before the end of the year whether a model is going to generate a tax loss that can be carried back against taxable profits from earlier years. Trying to reforecast the first month of the year to spread the tax refund calculated at year-end back to that period (and each of the other months in between) results in executing the balancing loop a minimum of 72 times in a year instead of 12, so that the calculations take at least six times as long to execute.

Balances and Flows for User-Defined Accounts

In some cases, models calculate more quickly when user-defined accounts are defined as Balances (last component period value) or Flows (sum of component period values) rather than Ratios.

The Model Validation Tool evaluates formulas that are used to calculate user-defined accounts, and if an account should possibly be a Balance or a Flow, it is reported in the log. It also evaluates formulas for user-defined accounts and reports a message in the log if a formula does not parse.

The Model Validation Tool might report more accounts that should be converted to a Balance or Flow as you change the setting for other accounts in the model.

Freeform Formulas and the Allow Overrides Flag

When using a freeform forecast method for an account that is being rolled up into a business case during a scenario rollup, if the account accepts input (@input or @scalar appears in the formula that you’ve entered), then the account should have the Allow Overrides flag set. This way, if the model is a parent in a scenario rollup, Strategic Modeling can generate an override if needed to get the correct result without having to change the setting of the Allow Overrides flag.

For account versions that belong to a business case, any freeform forecast method that accepts input and does not have the Allow Overrides flag turned on is reported in the log.

Missing Accounts in Formulas

Any missing accounts in formulas are reported in the log.

Circular Calculation

Circular calculations are reported in the log. The log displays all of the cells that are part of the circular loop, showing the account key and time period for the cell.

Referencing Data Outside the Actual Scenario While Calculating the Actual Scenario

If the scenario calculated during the model validation uses Actuals, and those calculations use leading time period references that access data outside of the Actual scenario, this information is reported in the log.

Unrecognized Exceptions

When something unexpected occurs, the exception information is reported in the log. You can't resolve this error on your own. Contact Oracle Support and provide the model and the audit log.