Revenue Forecasting Process Flow
Planning and Budgeting uses a bottom-up forecasting approach, where budget owners use historical Actual Revenue values to create their Customer and Item Revenue Forecasts. Forecasts are based on trends or entered manually by Customer or Item.
The Revenue Forecast is created, validated, and adjusted during the forecasting phase.
Creating the Revenue Forecast
The budget owner uses the trend-based Revenue forms to create the Revenue Forecasts. They can also use predictive planning to generate Forecast values. The budget owner can add rows in the Forecast for:
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NetSuite Customers and Items not yet listed in the Forecast.
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Potential new NetSuite Customers and Items in the Forecast.
Validating the Revenue Forecast
The budget owner uses the Predictive/Spread forms to analyze Revenue trends compared to historical Actuals. The form helps to assess accuracy based on historical trends. Budget owners also use the Revenue Dashboards to review Customer and Item Revenue trends.
The finance executive uses the Customer, Item, and Class Dashboards to compare Revenue projections against recent historical Revenue. They analyze Revenue as total amounts, as a percentage of total Revenue, or compared to prior years. Finally, they use Predictive/Spread forms to analyze Revenue trends compared to historical Actuals. These forms help to asses accuracy based on historical trends.
Adjusting the Revenue Forecast
The finance executive uses the Top Level Adj forms to analyze Revenue by Account in a list format.