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Setting Up the Forecast DefinitionForecasts in Oracle CRM On Demand automate the generation of sales forecasts according to the settings that you define. Forecasts are generated automatically on either a weekly or monthly basis. Each generated forecast is saved to the archive, providing a historical record that you can refer to and analyze. Every forecast is a snapshot of information about revenue and potential revenue for the quarter. Forecasts enable sales professionals and managers to track their quarterly sales performance against planned quotas, actual closed revenue, and expected revenue, given the current status of their sales opportunities. Participants in forecasts are chosen by role. Your company's reporting structure, and the roles you choose for the forecast participants must be set up so that the participants roll up to one top-level user. Typically this top-level user is a company vice-president or chief executive officer (CEO). When you generate a forecast, Oracle CRM On Demand alerts employees that the forecast has been created and is ready for review by posting an alert on My Homepage for each participant for two days. To extend the period during which the alert appears, update the Expiration Date field for that alert. For information on alerts, see Publishing Company-Wide Alerts. Determining the Forecast TypeYour company can base its forecasts on any of the following: opportunities, products, accounts, or contacts. There are four types of forecasts:
Your company can generate multiple forecast types on the specified forecast dates set for forecast generation. When you select the forecast settings for your company, you determine which forecast types your entire company uses. NOTE: Each forecast type requires sales employees to take certain actions. Make sure to communicate which types of forecast you will be using before your sales employees begin creating opportunity, account, and contact records. Opportunity Product ForecastsOpportunity product forecasts report on the products linked to an opportunity. The forecast numbers for the opportunity product forecasts are calculated from the Quantity, Revenue, and Expected Revenue fields on all products that are owned by a forecast participant and have revenue that is scheduled to be recognized during the forecast period. The revenue for a product can be reported at one time, or it can be reported during several periods. Opportunity product forecasts require sales representatives to link products to their opportunity records. Sales representatives must also fill in the quantity, purchase price, and the start and close date to indicate which products they want to include in their forecasts. To be included in the forecast, an opportunity product record must:
Some additional information must be provided for a record's values to contribute to your company's forecast revenue. For detailed information, see About Opportunities and Forecasts. Set up an opportunity product forecast if your company wants to forecast one-time or recurring revenue that is based on products. Opportunity Revenue ForecastOpportunity revenue forecasts report on the revenue noted in the opportunity records. The forecast numbers are calculated from the Revenue and Expected Revenue fields on all opportunity records where the following conditions apply:
Opportunity revenue forecasts require sales representatives to fill in the opportunity Revenue and Close Date fields to indicate which opportunities they want to include in their forecasts. Any linked products are ignored in the forecast. Some additional information must be provided for a record's values to contribute to your company's forecast revenue. For detailed information, see About Opportunities and Forecasts. Set up an opportunity revenue forecast if you want to forecast total opportunity revenue, regardless of how much revenue comes from individual products. Account and Contact Revenue ForecastsAccount revenue and contact revenue forecasts report on the revenue listed on revenue records that are linked to account or contact records. The forecast numbers are calculated from the Revenue and Expected Revenue fields for the records that meet the criteria for inclusion in the forecast. To be included in the forecast, an account or contact revenue record must meet the following conditions:
The revenue for an account or contact can be reported at one time, or it can be set up to recur over time. Account revenue and contact revenue forecasts require users to link revenues to their account or contact records. Users must also update the Start/Close date, Status, and Forecast fields on the revenue record to indicate which products they want to include in their forecasts. Some additional information must be provided for a record's values to contribute to your company's forecast revenue. For detailed information, see Tracking Revenue Based on Accounts, and Tracking Revenue Based on Contacts. Set up an account or contact revenue forecast if your company wants to forecast one-time or recurring revenue. Selecting Forecast DurationYou can configure forecasts to display revenue projections for up to four quarters. With the extended forecast capability, you can view a forecast for the current quarter, and for the following one, two, or three quarters. By default, the forecast duration is set to one quarter (meaning only the current quarter is included in the forecast). When you change the duration setting to include multiple quarters, the forecast includes the current quarter as well as future quarters. For example, if you select a two-quarter forecast duration, the forecast includes the current quarter and the next quarter. Designating Forecast RolesAs part of your forecast definition, you select which roles are to be included. When you add a role to the forecast definition, all users who are assigned that role are designated as forecast participants. User Setup for ForecastsThe users that you intend to include in your company's forecasts must be set up correctly. Their user records must meet the following conditions:
CAUTION: If any of the users included in the forecast are set up incorrectly, the entire forecast will fail. Examples of Reporting Structures and Roles for ForecastingTo generate forecasts you must set up your company's reporting structure correctly. The forecast hierarchy is based on the hierarchy specified in the Reports To or Reports To (Alias) field on the user records. All forecast participants, except for one top-level user, must report to another forecast participant, so that all individual forecasts roll up to one company-wide forecast. If there is more than one forecast participant who does not report to another forecast participant, or if any manager with forecast participants as direct reports has a status of Inactive, then the forecast will fail. NOTE: If the forecast fails to generate because of a problem with the reporting structure, the primary contact (indicated on the company profile) receives an email notification from Customer Support. After the reporting structure has been corrected and the forecast has been updated, the forecast is automatically generated that night, even though it is not the usual forecast night. The following table shows reporting structure and participant role combinations that work and don't work for forecast generation.
Including Inactive Users in ForecastsForecasts can include inactive users as well as active users. When you set up your forecast definition, you indicate whether inactive users are to be included in the forecasts. Allowing Managers to Submit Forecasts for their Direct ReportsWhen you set up your forecast definition, you indicate whether managers can automatically submit forecasts for their direct reports when they submit their forecasts. Forecasts and Custom Fiscal CalendarsWhen using custom fiscal calendars, your company's custom fiscal calendar definition are used in the generation of forecasts and therefore the forecast period months align with the custom fiscal calendar months. Your company administrator must create a custom fiscal calendar record for each year for which you want to create forecasts in Oracle CRM On Demand. If a sufficient number of fiscal calendars needed to support the selected forecast duration have not been created, it prevents the forecast series from generating and forecasts from being created. NOTE: If the forecast fails to generate because of insufficient fiscal calendars, the primary contact (indicated on the company profile) receives an email notification from Customer Support. After the fiscal calendar records to support the forecast definition have been created, and the forecast definition has been updated, the forecast is automatically generated that night, even though it is not the usual forecast night. About the Email Notifications for Forecast FailuresIn the email notifications that are sent when forecasts fail, the From address is always donotreply@crmondemand.com and the Sender field is always set to support@crmondemand.com. Oracle CRM On Demand appends a string to each email so that the email can be tracked in the email delivery system at Oracle. If the email recipient attempts to respond to the email, then the address in the To field in the reply is automatically set to support@crmondemand.com. The following procedure describes how to set up the forecast definition. To set up the forecast definition
CAUTION: After you set up your forecast definition, certain changes to user records or fiscal calendars require you to update your forecast definition settings. For more information, see Updating the Forecast Definition. |
Published 6/21/2021 | Copyright © 2005, 2021, Oracle and/or its affiliates. Legal Notices. |