> For the complete documentation index, see [llms.txt](https://smartbooks.gitbook.io/smartbooks-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://smartbooks.gitbook.io/smartbooks-docs/data-models/financial-planning/defining-the-model.md).

# Defining the model

Smartbooks allows you to create budgets and forecasts by defining your own planning structure within the financial accounts section. This is achieved using a bottom-up approach to building planning categories, giving you the flexibility to plan at either the general ledger (GL) level or at the subfolder level. 

* **Flexible Planning:** \
  You can choose per branch where to plan: 
  * For example, you might plan revenue at the individual GL level while setting the planning level for Cost of Goods Sold (COGS) at the subfolder level. 
  * When a subfolder is designated as the lowest level for planning, the underlying GL accounts and subfolders will no longer offer the option to adjust the planning level. 
* **Visual Indicators:** \
  In the financial accounts structure, blue bubbles indicate which folders or accounts are used for planning. A blue bubble next to a folder or account means that it is set as the planning level. 

## Changing the planning structure

If you need to change the planning levels, simply click on an account to access the planning options.

* **No "Source for Planning" Option:**\
  If an account does not display the "Source for Planning" option, it indicates that a higher-level subfolder is already set as the planning level.
* **Enabling Changes in Underlying Accounts:**\
  To change the planning level to lower-level accounts, set the source for planning of the higher-level subfolder to "Aggregate Children." This will allow you to adjust the planning options for the accounts beneath it.

When adjusting planning levels in Smartbooks, you have several options available. These options determine how planning values are derived and at which level the planning is performed:

* **Aggregate Children:**\
  When selected, the value of the subfolder is determined by aggregating the planning data from all items within it.
* **Input:**\
  Requires manual entry of planning data using the manual input screen, where you fill in the cells.
* **Formula:**\
  Allows you to enter a formula to determine the planning value. (See the dedicated chapter for more details on formulas)
* **Metrics:**\
  Links the planning to an existing metric for which you have already created a planning setup.

## Applying bulk changes

When a subfolder is set to **input** and you want to switch it to its underlying general ledgers, you would normally have to set it to **aggregate children**. Alternatively, you can click the **three dots** on the right while it is set to input and select move planning to children. Once applied, you can set the planning level to total or have it applied based on the business dimension members.

<figure><img src="https://1846213233-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FswBFWX9ni1arN3lAqgKQ%2Fuploads%2FBGmYT5fJDGOwLmOrvsGZ%2Fimage.png?alt=media&amp;token=fc1b7066-6c68-4958-b7fb-ea8046a2fce7" alt=""><figcaption></figcaption></figure>

## &#x20;Planning using business dimensions

When business dimensions are enabled in Smartbooks, an additional setting must be adjusted to enable planning at the business dimension level. This setting, found under Planning details level, offers two options:&#x20;

* **Total:** \
  Selecting this option means planning is performed at an overall level, business dimensions will not be used in the planning process.&#x20;
* **Contributing Members:** \
  When this option is chosen, planning input is enabled at the business dimension level. The inputs entered for individual dimensions will then be aggregated to produce a total value for the general ledger accounts based on the business dimensions inputs.&#x20;

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