Revenue Calculation Methods

Sales forecasts include the amount of potential revenue that an organization can expect to generate from a selected group of opportunities during the specified date range. Using the processing options for the Manage Forecasts program, you specify how the system calculates revenue amounts. You can use any of these methods:

• Calculate forecast revenue based on the Potential Revenue field from opportunities.

• Calculate forecast revenue based on the Line Item Total field from opportunities.

• Enter the revenue amount on the forecast.

If you use the Potential Revenue field, the system multiplies the probability of each selected opportunity by the value in the Potential Revenue field. The system then adds these amounts for all of the selected opportunities together and populates the Revenue field with the total.

If you use the Line Item Total field, the system multiplies the probability of each selected opportunity by the value in the Line Item Total field. The system then adds these amounts for all of the selected opportunities together and populates the Revenue field with the total.

Lastly, you can enter a revenue amount directly on the sales forecast. If you enter an amount in the Override Revenue field, the system uses the override value instead of the calculated value, when creating the forecast.