Revenue and Shadow Forecasts

PeopleSoft Sales provides two forecast variants, each with a different focus:

Revenue forecasts are projections of an organization's opportunity activity from a financial perspective; they provide information about the amount of revenue coming into the enterprise.

A revenue forecast is based on the opportunity team's allocation percentage. Typically, 100 percent is allocated to one sales representative on an opportunity for the purpose of revenue forecasts. However, you can distribute the allocation percentage across two or more opportunity team members. The allocation percentage for an opportunity team must total 100 percent.

Revenue forecasts are also known as split revenues. Revenue forecast amounts are calculated by multiplying the estimated revenue amount by the team member's allocation percentage.
Shadow forecasts are projections of an organization's opportunity activity from an operational perspective; they enable you to evaluate the performance of sales staff by comparing quotas to shadow revenue allocations.

A shadow forecast is based on the opportunity team's shadow percentages. The shadow forecast is operational in nature. The shadow percentage for an opportunity team does not have to total 100 percent. In the event that the total is greater than 100 percent, the amount over 100 percent is double-counted.

Shadow forecasts are also known as double counts; however, not every shadow forecast includes a double count. Shadow forecast amounts are calculated by multiplying the estimated revenue amount by the sales user's shadow percentage and then adding the shadow amount.

The following table shows three ways that you might assign revenue and shadow allocations to two representatives, SREP1 and SREP2, who are working on an opportunity. The table also shows how those allocations affect corresponding forecasts:

	Opportunity 1	Opportunity 2	Opportunity 3
Customer	Lakeview Community College	Grandma's Foods	MMA Property Management
Product Group	Air Conditioners	Freezers	Refrigerators
Forecast Amount	100,000 USD	600,000 USD	1,000,000 USD
Close Date	March 31, 2001	March 31, 2001	March 31, 2001
Revenue Allocation	SREP1 = 100 percent	SREP1 = 50 percent SREP2 = 50 percent	SREP1 = 100 percent SREP2 = 0 percent
Shadow Allocation	SREP1 = 100 percent	SREP1 = 50 percent SREP2 = 50 percent	SREP1 = 100 percent SREP2 = 25 percent
Scenario and Forecast Results	One representative handles the deal and receives all of the credit: 100,000 USD appears on SREP1's Revenue forecast. 100,000 USD appears on SREP1's Shadow forecast.	Two representatives handle the deal and split the amount equally: 300,000 USD appears on SREP1's Revenue forecast. 300,000 USD appears on SREP2's Revenue forecast. 300,000 USD appears on SREP1's Shadow forecast. 300,000 USD appears on SREP2's Shadow forecast.	SREP1 owns the deal. SREP2 assists and receives partial shadow credit: 1,000,000 USD appears on SREP1's Revenue forecast. 0 USD appears on SREP2's Revenue forecast. 1,000,000 USD appears on SREP1's Shadow forecast. SREP1 receives full credit toward the representative's quota. 250,000 USD appears on SREP2's Shadow forecast. SREP2 receives partial credit toward the representative's quota for assisting with the deal.