Organize and Maintain Version Control

Performing a quality check and making adjustments on the way

When you receive a model from a client or co-worker, you will first want to explore the file to get acquainted with it. While you’re at it, you will also perform a quality check and of course, make adjustments when and where you deem necessary for the quality and reliability of the file.

Step 1: Respond to notifications and pop-ups

As soon as we open our test-file, we are confronted with a Security Warning in the yellow bar: Automatic update of links has been disabled. As a frequent Excel-user you’re probably familiar with this notification that indicates there is something wrong with a link in the file.

When we click the ‘Enable Content’ button, a pop-up with pretty much the same notification appears:

Step 2: Investigate broken link

Clicking on ‘Edit Links’ allows us to investigate which link(s) this notification is referring to.

In the Edit Links window, we see a reference to Invoices.xlsx. This file is not available to us (maybe a client or co-worker didn’t provide it together with the model we’re working with), so it’s logical that the reference doesn’t work. The question is: where do we find this reference in this model? Let’s start searching!

Step 3: Locate the link

To find the external link in our model, we choose the option ‘Show Formulas’ under ‘Formulas’ in the main menu. In this mode, we visually inspect all cells in all tabs to find the link. Fortunately, the model we are using in this example is concise, so we quickly locate the link on the ‘Income’ tab in cell C4.

Step 4: Fix the issue

First, we undo ‘Show Formulas’ (by clicking it again) to rehide the formulas and reveal the values. The value is in cell C4 is 54,000. To get rid of the error message we replace the formula by its value: 54.000.

Step 5: Document the adjustment

It’s essential that we document this adjustment, because it’s not how our client or co-worker provided the model. We must be able to explain to the next user what we did and why. Therefore, we add a documentation tab where we will track all changes.

Step 6: Unhide hidden row

While we were working on the ‘Income’ tab, we noticed another issue by chance: row 6 is followed by row 8. This means that row 7 is hidden, and hidden information can pose a risk. In accordance with the PerfectXL Guidelines we prefer to make this row visible and this is another action that should be documented in our Documentation sheet, because this adjustment might be relevant at some point.

Step 7: Assess the data

Now, have a very conscientious look at the information in the table on the ‘Income’ tab for a minute. Have you noticed that the data in row 6 (‘Management fees’) and row 7 (‘Management bonus’) represent expenses instead of income? This means that the values in cell B6, C6 and C7 should be made negative to make any sense in this specific table.

These are also important adjustments to note down in our documentation sheet.

Note: The effect this action has on row 9, ‘Total income,’ is a consequence; it’s not necessary to document this as an adjustment.

Step 8: Check for other irregularities

Let’s continue to check our model for irregularities and examine all tabs in ‘Show Formulas’ mode. On the ‘Operating’ tab, something catches our eye. In column D, there is a formula copied across much for the range (‘=C[x]-B[x]’), but we see two interruptions with the naked eye. Cell D8 contains no formula (but value ‘0’), and in cell D23, ‘+30’ has been added to the formula.

Step 9: Resolve detected issues

We drag the formula neatly down to cell D8, but the situation in cell D23 needs a bit more attention. The difference here has been increased by 30 more than the actual difference between Estimated and Actual costs. It is better to make these costs transparent so that the formula can be dragged continuously. We add a row below row 23, which we call ‘Extra other.’ In this row, in cell B24, we enter the value ‘0,’ and in cell C24, we enter the value ’30.’ Then we remove ‘+30’ from the formula in D23 and drag =C[x]-D[x] down to D24.

Step 10: Double check

We see that the worksheet now looks much more transparent. However, if we pay close attention, we see that the sums in row 25 have not been automatically dragged down. We correct the sums by dragging the range in cell B25, C25, and D25 from row 4 to row 24.

Step 11: Update Documentation sheet

By now we have made quite a few adjustments in our model, and that’s why the Documentation sheet is absolutely essential. Only by documenting all of our adjustments will we be able to remember our reasons later on and, if necessary, take accountability for  them.

Step 12: Check for more hidden elements

To conclude our quick scan for irregularities, we check if there are any more hidden elements in our file. By right-clicking on a tab, a pop-up appears with the option ‘unhide.’

Step 13: Unhide hidden elements

When we click the ‘unhide’ option, we will find that the ‘Content’ tab is hidden. Select the tab and click ‘OK’ to make it visible.

Step 14: Document the Unhide action

We document our ‘Unhide’ action of the content tab in the ‘Documentation’ tab.

Conclusion

Our final ‘Documentation’ tab shows 16 separate adjustments. This is of great importance to explain to the next user or client what has changed and why. A Documentation sheet is also very useful when we no longer know what the original state of the model was or when we are called to account for these adjustments by an manager or the board.

Keeping a Documentation sheet is a dreadful and very precise job, and if your model is extensive, it also takes a lot of time. But imagine being the second user of the model; you will be grateful that this documentation is available.