How to use flags in a model
Can someone explain how to use flags in a model simply (I.e. to indicate lease start dates)? For example, I see 1s and 0s used pretty frequently. And also, what is the reason they are used / what would have been the alternative otherwise? I understand they’re a bit easier to follow / audit
I’m able to follow them when built in a model but am struggling conceptually about how to think about them when building them from scratch on my own. Is there anyway I should think about them at their core / broken down? Thanks!
The idea is to always keep your model simple to follow. This also helps minimizes potential mistakes you could make when creating it!
Flags are useful when a formula becomes too complex to follow. By breaking the formula into two parts using a flag, you can make it easier to understand. The alternative is either having a long, hard to follow formula or just hardcoding (I like to keep my models dynamic, but it really depends on the situation).
I'll use your example of a start date for some lease. You can build this type of flag the following way:
Got it this makes a ton of sense. So I should think of flags as not just to show timing but as an actual input / switch (i.e. for visibility to see where on a timeline a lease starts) that id multiply
Yes, that's the general idea.
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