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 |
|
|
Shadow Allocation |
SREP1 = 100 percent |
|
|
Scenario and Forecast Results |
One representative handles the deal and receives all of the credit:
|
Two representatives handle the deal and split the amount equally:
|
SREP1 owns the deal. SREP2 assists and receives partial shadow credit:
|