Entering Assumptions

Enter assumptions that drive revenue calculations for promotions and key account planning.

Enter key factors in your application for volume and revenue based applications. For example, the sales price per unit drives revenue calculations.

You can enter assumptions for:

• Sales Price Per Unit
• Cost of Sales
• Contract Rates

Enter assumptions for account and product combinations.

1. From the Home page, click Key Account Planning and then click Assumptions .
2. In the POV, select the Products and Customers for the assumptions you want to enter.
3. Click the tab for the assumptions you want to enter:
   • Sales Price Per Unit. You can enter sales price at the beginning balance (in the Assumptions column) or at a monthly level if the price is variable across different periods. If there is no monthly value, the beginning balance value is used in calcuations.
   • Cost of Sales. Enter the cost per unit, defined for each product across any customer. This value drives the COGs for the Customer Profit and Loss.
   • Enter Contract Rates. Enter rates as a percentage, or as a flat rate for Listing Fees and COGS per Unit.

     For contract rates, when you save your changes, the assumptions that you entered populate all the way down through the hierarchy. You can adjust these values as needed for members at lower levels in the hierarchy. When you save the adjustments, they populate down to any members lower in the hierarchy. Any further changes you make at higher levels in the hierarchy continue to percolate down to any members lower in the hierarchy.

4. Enter your assumptions and then click Save.

The assumptions drive other calculations, based on revenue or volume, depending on the type of measure. Percentage measures are calculated based on revenue. Per unit measures are calculated based on volume. These assumptions drive calculations such as Customer Profit and Loss.