How To Use Scenario Manager in Excel (Video transcript)
We have here a one-year budget projection. Here the other month’s sales amount is depending on the sales in January.
Sometimes we want to know the height projection, the minimum projection. We can manually do it creating another version of the sheet. But Scenario manager creates a different groups of values or Scenarios and switches between them.
Let’s create three Scenario for this sales projections. Standard, High Sale and Low Sale Scenario.
To define these three Scenario, go data, what if analysis and click Scenario.
Let’s give it a name Standard and the changing cells will be the sales, shipping, and the cost of the goods and click ok.
Let’s create another scenario for optimistic sales, call it High sale and we can change the values under high sales, let’s sale be 800,000, Shipping, 140,000, and cost of goods decreased to 700000 and click ok.
Let’s create the third option, pessimistic sales option. let’s call it Low sales, and change the sales to be 500000, and the shipping to be 110000 and the cost of good become increase and set to 980000 and click ok.
Now we have the three Scenario and we can show one by one and observe the change in the profit. We can do dock the created scenarios in the Quick Access toolbar. To do that go to the Quick Access toolbar and more commands and add all commands and here Scenario we can add to dock it. Now we have these three Scenario managers.