Constants and planning assumptions are numeric values that can be used in P&L planning formulas. They allow you to use a defined amount or percentage in a calculation instead of entering the value directly into the formula.

For example, you can use a constant or planning assumption for a food cost percentage, a fixed monthly cost, or another value that is used repeatedly in your planning calculations.

Planning assumptions is the new interface for managing these planning values. Existing properties can continue to use the legacy Constants tool, while new properties use Planning assumptions.

Good to know: Planning assumptions are still shown as Constants in the P&L formula creator. When you want to use a planning assumption in a formula, select Constant as the source and then select the required value from the list.

How constants and planning assumptions work

Constants and planning assumptions are maintained separately from your P&L accounts and can then be referenced in planning formulas.

For example, if food cost is normally 30% of food revenue, you can create a planning assumption called Food cost % with a value of 30%.

A P&L formula can then use:

Food revenue × Food cost % = Food cost

If the food cost percentage changes during the year, you can maintain different values for different months. For example, you might use 30% for most months and 40% in December because of a seasonal menu.

When the planning assumption is updated, the formula uses the updated value in the calculation.

Example

A hotel wants to calculate food cost for the Breakfast department based on food revenue.

The hotel has a planning assumption called Food cost %, with a value of 30%.

The formula uses:

• Constant: Food cost %
• Profit center: Breakfast
• Value: Food revenue

The calculation is:

Food revenue × Food cost % = Food cost

For example, if food revenue is €20,000 and the Food cost % is 30%, the forecasted food cost is €6,000.

If the planning assumption is changed to 35%, the formula uses 35% when calculating the forecast.

Add a constant or planning assumption to a P&L formula

1. Open/edit the P&L formula

1. Open the Profit & Loss Account page.
2. Find the P&L account where you want to create or update the formula.
3. Click the pencil icon next to the account.  (or to edit an existing formula, click on the formula icon)

Open/edit a formula

4. If this is a new formula, click on the +
5. Select Advanced.
6. Enter or update the formula in the Connect/formula field.
7. Click the wand icon to open the advanced calculation editor.

Add an advanced calculation

2. Select the Constant/Planning assumption

1. At the x value, open the Source dropdown.
2. Select Constant.

Select constant as the source

3. Open the Type dropdown.
4. Select the constant or planning assumption you want to use.

The list contains the planning values available to the property. Values created in the new Planning assumptions interface are also shown here as Constants.

Select the correct constant/assumption

3. Select the value to use in the formula

1. Under the y value, open the Source dropdown.
2. Select the source that contains the value you want to use.

For example, select Hotel 417, Profit Center if the formula should use a value for a specific profit center.

Select source, eg. Profit centre

3. Select the required Profit Center.
4. Select the Segment, if applicable.
5. Under Value, select the value to use in the formula, such as Food Revenue.
6. Click Save/Update.

The planning formula now uses the selected constant or planning assumption when calculating the P&L account.

Where to manage constants and planning assumptions

The value used in the formula is managed in the Constants or Planning assumptions tool, rather than directly in the formula.

You can manage planning values in the legacy Constants tool or in Planning assumptions.

If you are using the Constants tool, you can switch to Planning assumptions by turning on the Use new PMI view toggle.

To return to the legacy Constants screen, turn Use new PMI view off.

Both views use the same underlying planning data.

Important to know

Once a planning assumption is used in a P&L formula, some of its settings can no longer be changed. For example, the Display as percentage setting cannot be changed while the assumption is used in a formula.

For formula-linked planning assumptions, PMI can also calculate historical assumption values from actual P&L results. These values are displayed in the Actuals period in Planning assumptions and are read-only.

For more information about managing planning values, see:

• Constants explained: how they work in PMI Planning
• Planning assumptions explained