using sumif to complete database sheet
in the video on the above title, how was net income created?
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Hello,
We start with the assumption that the ERP extraction (the source data) we have is correct. Within the extraction the ERP system has calculated Net income for each year. Our goal is to rearrange the items and build a P&L with the categories we have chosen.
By construction a P&L can be defined as Revenues - Costs = Net income;
All items in the P&L (besides Net income) are either Revenues or Costs, then
Revenues - Costs - Net Income has to be 0.
This is why we need to ensure that each sheet's sum is 0 based on how we have organized the data and on the fact that we subtract Net income through the SUMIF function.
Hope this helps!