The Model Creation Process
NetSuite Predicted Risk predictions are based on your organization’s historical data. The predicted risks process reviews all fully received orders over the last two years of activity. To keep the data up to date, the system automatically reviews 720 past transactions every three months.
After you enable predicted risks, the model training process begins:
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NetSuite reviews the last 720 customer transactions for the following order types:
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Purchase Orders – before the date predicted risks were enabled, 720 completely received purchase orders per vendor were reviewed over the past two years.
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Transfer Orders – before the date predicted risks were enabled, 720 transfer orders per location pair were reviewed over the past two years. (From location and To location)
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Sales Orders – before the date predicted risks were enabled, 720 sales orders shipped were reviewed over the past two years.
Note:If you have an external system that creates predictions, NetSuite enables you to manually enter days late and confidence predictions. To learn how to enter predictions manually, see Manually Entering Predicted Risks.
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The transactions are separated in the following manner:
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70% to create the model.
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30% to validate the model.
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The process removes transactions that do not meet model criteria.
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Every three months the predicted risk model’s performance is validated and re-created based on performance degradation.
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Every night at 2:00 a.m., the system runs all new transactions to create predictions.
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The process assesses new transactions based on the model to predict the following:
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Whether the transaction will be late.
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The number of days the order will be late.
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The prediction confidence level.
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If the system returns a value, it uses the following machine learning predictions.
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The default from the purchase order vendor record.
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The default from the transfer order from location record.
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The default from the sales order location record.
If the system cannot find a default, NetSuite uses the default from Control Tower Preferences (Setup> Accounting > Control Tower Preference).
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