1. Hospitality Guide
  2. Forecasting Product Consumption

Forecasting Product Consumption

For most products, the quantity to be used at an event is usually the quantity of the product line item. If a quantity is entered for a line item, then the line item value is used to calculate revenue. However, for some products, the quantity to be used at an event, which is used to forecast revenue, is calculated from the number of attendees.

For more information about how product consumption forecasting can be applied, see Example of Product Consumption Forecasting.

This task is a step in Roadmap for Setting Up Products and Assets.

To forecast product consumption

  1. Navigate to the Administration - Product screen, then the Products view.

  2. In the Products list, create a new product record.

  3. In the new record, complete the fields, as required.

    Some fields are described in the following table.

    Field Comments

    Forecast Qty

    Select to enable product consumption forecasting. Clear to use the line item quantity to forecast the revenue for the item, instead of product consumption forecasting.

    UoM

    The unit of measure by which the product is sold.

    Consumption UoM

    The unit of measure for actual consumption by the attendees. For example, coffee might be sold by the gallon for a function, but the attendees might consume coffee by the cup.

    UoM Conversion Factor

    The ratio of Consumption UoM to Product UoM. For example, if there were 20 cups of coffee in 1 gallon of coffee, then the ratio is 20 to 1, and the conversion factor is 20.

    Consumption Factor

    The expected per-person consumption of the product. For example, if each attendee is expected to consume two cups of coffee, then the Consumption Factor is 2.

    % Participation

    The percentage of attendees who are expected to consume the product, expressed as a fraction of 1. For example, if 80 percent of attendees are expected to consume the product, then enter 0.8 to this field.

    Note: In some cases, the percentage participation might be different from property to property. For example, in colder states, people might drink hot coffee than in warmer states. In this case, it is necessary to create different products with different values in this field.

  4. Click Release to make the product take effect.