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If we want to override the new formatting above the Formatting Sheet based on any condition (like it's value, or based on value coming from local member, etc.)

then we can use Conditional Formatting from EPMFormatting Sheet, It will override the existing Formatting and update the New formatting based on the result.

For e.g., If we want to format our report based on values in a local member. Here HLEVEL is local member, it contains values from 1 to 5,

and we want to format the rows based on it's value.

so we go to EPMFormatting Sheet and select the cell (Here we have selected the cell F32,  F32 cell is the Data Region of our Report )

where we want to apply conditional formatting.

Now we go to Home->Conditional Formatting and click on Manage Rules,

Now click on New Rule.

Here are rules based on which we can do conditional Formatting, here we select use a formula to determine which cells to format.

Now we write the Formula for conditional Formatting (In our e.g., we want to do it to rows based on value of local member,

Local member is in the Column C, and we are doing formatting on Cell F32 (row 32) , so we write formula

=IF($C32 = "1" , TRUE , FALSE).

Now we can do the formatting(Number Format, Font, Border, Fill ) which we want to do on selected region, (for above e.g., we take background color as black,

and font color as white and Bold.

Now Click on OK.

Here we can see the Preview of our formatting, now click on OK.

Here we can see all the rules on the selected cell.Now click on apply. (We have created rules for when value of local member is 1 ,can create more rules similarly)

Now go to the Report and Refresh it , we can see the formatting where value of Local Member is 1.

we can create more rules ( In above e.g. we will create 4 more rules where value of local member is 2 ,3 ,4 and  5)

Now go to Report and Refresh, it will look like.

Hope this is Helpful, If someone has more information you can add to it.