The Roll-Forward Construct: Building Continuity Across Time
Every FP&A model needs to show how things change, not just where they stand.
That’s the role of the Roll-Forward Construct — the logic pattern that tracks beginning balances, period activity, and ending balances across time.
How It Works
At its core, a roll-forward model starts with a beginning balance, applies additions and subtractions, and calculates an ending balance.
It’s deceptively simple — but it’s the foundation for how most recurring models work in finance.
Common examples include:
Headcount planning: Begin the month with current employees, add hires, subtract terminations.
Inventory models: Track stock levels as items move in and out.
Recurring revenue (MRR): Add new subscriptions, subtract churn, and roll forward totals.
Roll-forwards make models continuous, turning static snapshots into living, evolving systems.
Two Core Versions
Standard Roll-Forward
Calculates inflows and outflows within the same period, without referencing prior data.
Useful for discrete activity-based models like bookings or churn tracking.Anchored Growth Model
References the prior period to calculate movement — for example, churn as a percent of last month’s customer base.
The first period begins with a fixed “anchor” value since there’s no prior data to reference.
Both versions provide continuity across periods — ensuring every movement ties to the next.
Why It Matters
Roll-forwards are what make planning models connected, reconcilable, and trustworthy.
They:
Maintain continuity, linking time periods logically.
Enable reconciliation, so every movement can be traced back to drivers.
Provide transparency, exposing the mechanics of change.
Support scalability, serving as templates for any flow-based process.
Without roll-forwards, models become snapshots. With them, they become systems of motion.
Implementation in Pigment
Pigment handles roll-forward logic natively through its timeline-aware structure.
A typical pattern might look like:
Ending Balance = Beginning Balance + Additions – Reductions
Because Pigment supports direct period references, formulas can call prior-month or prior-quarter values dynamically.
This allows automated continuity without the need for manual linking or helper tables.
Multi-entity roll-ups, FX translation layers, or consolidated results all build on the same foundation — one construct that scales effortlessly across the model.
The Broader Framework
The Roll-Forward Construct is one of Bright Point’s 11 Planning Constructs — the reusable algorithms that describe how real-world data evolves through time.
Together, these constructs form the foundation for transparent, auditable, and scalable FP&A modeling.
Explore all Planning Constructs →
Bright Point’s Perspective
At Bright Point, we see roll-forwards as the heartbeat of planning models.
They connect past to present, keep every value reconcilable, and build the trust finance leaders need in every number they present.
