The inclusion of custom formulas within pivot tables allows for the creation of new data points based on existing fields. These formulas enable the summarization and analysis of data in ways that standard pivot table aggregations cannot. As an example, one might compute a profit margin by subtracting cost from revenue, both of which are fields already present within the dataset summarized by the pivot table.
Implementing formulas within pivot tables enhances the report’s analytical capabilities. These enhancements allow the user to derive key performance indicators (KPIs) and perform what-if scenarios directly within the pivot table interface. This capability reduces the need for external calculations or data manipulation, streamlining the analytical process and minimizing potential errors. Historically, this functionality has evolved from simple sum and average functions to encompass a wider array of mathematical and logical operations.