Using a Standard Monetary Unit
Ensuring unit consitency througout the model
Most models will have a default monetary unit.
Working a lot in Project Finance and Infrastructure, many of our models have "USD 000s" as the default unit.
We have set up a "Standard Monetary Unit" on the input sheet of the Start model.
The Standard Monetary Unit is listed with the "non-changeable technical inputs" at the bottom of the input sheet.
The cell containing the unit input has been named "SMU".
![](https://www.financialmodellinghandbook.org/content/images/public/images/7eaeb15f-3949-4c81-880c-6eb4ea656101_1720x1720.jpeg)
Naming the cell allows you to call up the unit by typing "= SMU" in the units column.
![](https://www.financialmodellinghandbook.org/content/images/public/images/aa547d28-55fe-4d02-83fb-611a98777a00_1816x774.jpeg)
We do this because:
- It's quicker than typing the unit each time, and repetition allows it to become a "muscle memory" action.
- It ensures unit consistency throughout the model (otherwise, it's common to mix "USD 000s" and "$ 000s" and "US$ 000s" in the same model.
- If we want to change the units of our model later or the units of the start model when starting a new project, we only have to change one input.
![](https://www.financialmodellinghandbook.org/content/images/2023/09/FinancialModellingHandbookHero--3--117.png)
Comments
Sign in or become a Financial Modelling Handbook member to join the conversation.
Just enter your email below to get a log in link.