What does the waterfall chart show and how does it work?

The waterfall chart is designed as a visual representation of your profit and loss report with details showing how you are pacing against targets set, and where you can expect to be at the end of the month.

All bars move from left to right, with the sub rows displaying the breakdown of Total revenue and Total costs. If your Gross operating profit is a negative value, this bar will move from right to left and will appear behind the 0 on the scale. Note – GOP will not be the final accounting profit for the organization because costs such as depreciation, rent and loan interest are deducted after this line.

Legend

1. The black solid line represents your goal, either static forecast or budget depending on the view you have selected.
   1. For properties with Planning, the forecast is the last approved WiP Forecast.
2. The black dotted line shows where you should be today in order to meet your month end goal, given that your Live Forecast for the rest of the month is correct. The calculation is Month-end Forecast / Month-end Live Forecast x MTD actuals
3. The grey bar represents our month end prediction (also known as live forecast) – based on how you are doing to date. This is where we expect you to be at the end of the month.
4. The length of the coloured bar indicates your actual result so far this month (month-to-date)
   A green bar shows you are on pace to meet or exceed your month end goal, amber – near pace (within 5% to be on pace) and red – off pace to reach your month end goal.

Settings

You can review and adjust which revenue appears in each line of the waterfall chart by clicking on the settings icon in the top right corner of the screen.

Waterfall chart data sources for properties with PMI Planning

When viewing a past month 

2. The Goal lines are your last approved WiP budget or forecast as selected.
   2. The hours bar goal line is the SMART Forecast or budget. The goal adjusts according to the activity levels at the hotel. For example, if you are experiencing higher occupancy than forecasted, it would be expected that labor hours would also be higher than forecasted. The SMART forecast caters to this, providing a realistic goal based on the activity at the hotel.

2. All actual figures (colored bars) are from the P&L report created in Planning named ‘GM daily digest.’ Click on the P&L menu icon, go to reports and select GM daily digest to view the report.
   1. To give time for the finance team to prepare and update their P&L report, the P&L is used as the data source only after the offset days as set in PMI settings. Before this date, sources for waterfall chart follow the current month logic.

When viewing a current month 

1. The Goal lines are your last approved budget or forecast as selected.
   1. For the hours bar, this shows the SMART Forecast or budget.

2. The Pace to goal (dotted lines) shows where you should be today to meet your goal, based on your live forecast.
   1. The calculation is Month-end Forecast / Month-end Live Forecast x MTD actuals
   2. For the hours bar, this shows SMART MTD Forecast or budget.

3. The month end expectation (grey bars) is based on the live forecast
   1. All revenue lines: Live forecast values
   2. Labor cost: Live forecast hours * current hourly rate as set in the cockpit * percentage as set in settings (if applicable)
   3. Food cost: MTD goods received values recorded in food cost cockpit + food revenue forecast for remainder of month * food cost %
   4. Cost of sales: P&L WiP forecast
   5. Other oper. costs: P&L WiP forecast
   6. Total oper. costs: Sum of all cost lines
   7. GOP: Total revenue minus total operating costs

4. The month-to-date (colored bars) are actual figures, updated each morning
   1. All revenue lines: MTD actual figures from R&P
   2. Labor cost: MTD actual hours * current hourly rate as in labor cockpits * percentage as set in settings (if applicable)
   3. Food cost: MTD actual goods received values as recorded in food cost cockpit
   4. Cost of sales: MTD P&L WiP forecast
   5. Other oper. costs: MTD P&L WiP forecast
   6. Total oper. costs: Sum of all cost lines
   7. GOP: Total revenue lines minus total operating costs

When viewing a future month 

1. The Goal lines are your last approved budget or forecast depending on comparison selected.
   1. For the hours bar, this shows you SMART forecast or budget.

2. The month end expectations (grey bars) are based on the live forecast
   1. All revenue lines: Live forecast
   2. Labor cost: Static forecast hours * current hourly rate as in labor cockpits * percentage as set in settings (if applicable)
   3. Food cost: WiP food revenue forecast * forecast food cost % from the food cost cockpit
   4. COS: P&L WiP forecast
   5. Other oper. costs: P&L WiP forecast
   6. Total oper. costs: Sum of all cost lines
   7. GOP: Total revenue – total oper. costs in graphic

3. There are no colored bars for future months, as no actual results yet recorded

Waterfall chart data sources for properties without PMI Planning 

For properties without PMI Planning there is no Profit and Loss data imported in PMI which limits the information we have available to display, so the waterfall chart will appear as incomplete. To find out more about PMI Planning module, please contact support.