Calculating Future Events Using Estimated Impact

This calculation method determines the forecast for the next instance of the event based on impact percentage, amounts, or absolute estimates entered by the user for one or more forecast components. This method does not incorporate historical data.

For example, a pizzeria estimates that the Net Sales forecast component will increase by 10 percent. If the typical Net Sales on a Friday evening is $2500, the calculation method applies the 10 percent increase for a forecasted Net Sales of $2750.

If the actual values for that Friday evening are $3000 and the pizzeria applies the same 10 percent estimate, the calculation method applies the 10 percent increase to the new Net Sales value of $3000, resulting in a forecasted Net Sales of $3300.

Impact estimates creating using this calculation method are applied as a one-time event. You can apply the event more than once, but the method does not automatically apply itself to future forecasts.