Forecasting with Predictive Planning

Predictive Planning accesses historical data to make predictions of what the scenario plans may look like in the future. With Predictive Planning, you can view trends and growth rate predictions to validate and update values. You can also adjust and copy projected trends and series points to the forecast.

You can access and use the Predictive Planning feature on the following forms:

Revenue Predictive/Spread (in the Revenue and Gross Margin card)
OpEx Predictive/Spread (in the OpEx card)

You can use Predictive Planning to review and compare existing forecast values against predicted values and to identify trends. Predictions are based upon historical Actuals, and you can select the time period of the prediction. You can also adjust forecast values manually or update values automatically based on the predicted values. Additionally, use Predictive Planning to paste predicted values into the scenario plan. You can also adjust series points within the prediction, prior to pasting the values to the forecast.

The following procedure provides examples of how to update the OpEx forecast by using Predictive Planning. The steps required for the form that you plan to use may slightly differ from the ones provided. However, the concepts demonstrated are applicable to your form.

Sample of the Predictive Planning feature being used to forecast an OpEx account in the Sales department

Note:

Predictive Planning opens in the context of the selected Account and the prediction for the selected Account appears first. However, predictions calculate for all Accounts on the form, even if you select a single Account. Therefore, you can go between different rows on the form to see different historical data and Actual and predictive trends appear in Predictive Planning.

To review, adjust, or update a forecast by using Predictive Planning:

From the Home page, click the relevant card. For example, click OpEx.
Click the relevant tab on the left-hand side to go to the data entry forms. For example, click the 1 tab to go to OpEx Planning.
Click the Predictive/Spread form at the bottom of the page. For example, click OpEx Predictive/Spread.
In the Point of View, select the dimension members that you want to view, and then click the Go icon .
Click the Account you want to review to highlight the row.

Note:
For the Revenue Predictive/Spread form, you will have to expand the collapsed Accounts and customers to display values at the detail level.
Click Actions in the upper-right of the form, and then select Predictive Planning.

The Predictive Planning pane appears and displays the historical data and the Actual and predicted trend.
Click the Settings icon in the upper-right of the Predictive Planning pane.
In the Settings popup window, click the Date Ranges tab.
1. Select the historical data range to include in the prediction from Past Start Year, Past Start Period, Past End Year, and Past End Period fields. The Historical Data Range determines the historical time period to include.
  
  For example, if you want to predict based on last year’s Actuals, select the start period and year for your last financial year. Then, select the last closed period in the current financial year.
2. Select the prediction range to include in the prediction from the Future End Year and Future End Period fields. The Prediction Range determines the future time period to include.
  
  For example, if you want to predict this year and next year’s forecast, select the last period in the next financial year. If your current year starts January 2020, select December 2021.
  
  Note:
  The Future Start Year and Future Start Period automatically default to the period after the past end year and period.
3. Click the Chart View tab. The series types to include in the chart are defined here.
4. Check the Past and Future options to use. You can check multiple boxes.
5. Click Apply to save the changes for this session.
  
  The chart appears in the context of the selected Account for the selected criteria. Actuals show up to the solid vertical line in the chart, followed by the predicted values for future periods.
To evaluate different series data, click the series name in the legend. The legend shows different series types based on the criteria that you selected.
Click one of the following trends in the legend:
- Prediction
- Best Case
- Worst Case
This series is indicated with a left arrow, the chart grabber, and the series points display on the trend.
Review the prediction trend in relation to the historical trend and note the Growth Rate predictions for each legend series in the right panel.

Tip:
Hover over each growth rate percentage to display helpful and brief descriptions about the growth rate.
To adjust the predictive curve, click the chart grabber arrow and drag the chart grabber up or down to increase or decrease all prediction values. Prediction values adjust relative to the first predicted value.

Note:
The first predicted value is fixed when you drag the chart grabber up or down.
To adjust the first predicted period, hover over the chart to reveal the Unlock First Period icon , and then click that icon to unlock the first period value.
1. Drag the chart grabber to increase or decrease trend values evenly.
2. To lock the first period value to its new position, hover over the chart to reveal the Lock First Period icon , and then click that icon.
Hover over a series point to display the predicted value for that period.
To manually adjust a series point, drag the individual series point down or up to the required level.
To restore the selected series and revert changes made to the prediction, hover over the graph to reveal the Reset icon , and then click that icon.
When you are satisfied with the predicted values, to copy the data into the scenario plan:
1. Click the Paste icon .
2. In the Paste Prediction popup window, select a trend that you want to copy from in the Copy From field.
3. Select which periods to paste into the forecast in the Prediction Range field.
4. Under Members, select if you want to only copy the currently selected Account member or copy the predictions for all Accounts.
5. Click Paste. The data copies onto the forecast for the period ranges and members selected.
Click Save to save the forecast values.
To populate top-level members with the adjusted data, right-click in the data grid and select Aggregate to Income Statement.

To review, adjust, or update a forecast by using Predictive Planning:

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