Recalculating Revenue Forecast Plans
You can recalculate revenue forecast plans to align them with the recognized and planned revenue of the actual revenue plans for the revenue element. If the actual plan has not yet been created, the amount for the period is 0.
When you recalculate, NetSuite adjusts the revenue forecast plans to match the actual plan amounts as of the selected period. The adjustment is applied according to the reforecast method on the revenue forecast plan. For a description of the reforecast methods, see Reforecast Method.
At month end, generate revenue recognition and reclassification journal entries before you recalculate your revenue forecast plans. To ensure that your forecast reports are accurate, always recalculate revenue forecast plans before you run your reports.
For example, consider a revenue element with a revenue amount of $300. The element has an actual revenue recognition plan with a start date of January 1 and an end date of April 30 in the same year. The revenue forecast plan starts January 1 and ends March 31. Both plans use the straight-line, by even periods recognition method. The plans are created on revenue arrangement creation as follows:
|
Revenue Plan Type |
Jan |
Feb |
Mar |
Apr |
Total |
|---|---|---|---|---|---|
|
Actual |
75 |
75 |
75 |
75 |
300 |
|
Forecast |
100 |
100 |
100 |
|
300 |
On January 31, you post the revenue recognition journal entry and run deferred revenue reclassification. The following table shows the results of forecast recalculation for the reforecast method options when the Recalculate as of Period is set to January. The Recalculation Adjustment Period Offset for the Manual method is 3.
|
Revenue Plan Type |
Jan |
Feb |
Mar |
Apr |
Total |
|---|---|---|---|---|---|
|
Actual |
75 |
75 |
75 |
75 |
300 |
|
Forecast – Next Period |
75 |
125 |
100 |
|
300 |
|
Forecast – Remaining Periods |
75 |
112.50 |
112.50 |
|
300 |
|
Forecast – Last Period |
75 |
100 |
125 |
|
300 |
|
Forecast – Manual, Offset 3 |
75 |
100 |
100 |
25 |
300 |
Forecast plans, except those for return transactions, may not begin or end with negative amounts. When you recalculate forecast plans, the beginning and ending periods are adjusted as follows:
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When the Reforecast Method is Next Period and the first period amount is negative, the negative amount is included in the next period. The first period is always positive. For example:
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If January is negative, the negative amount is added to February’s amount.
-
If February is then negative, February’s negative amount is added to March’s amount.
-
-
When the Reforecast Method is Last Period or Manual and the last period amount is negative, the negative amount is included in the prior period. The last period is always positive. For example:
-
If March is negative, the negative amount is added to February’s amount.
-
If February is then negative, February’s negative amount is added to January’s amount.
-
Forecast plans for return transactions follow the reverse logic. The first and last periods may not begin or end with positive amounts.
Be sure accounting periods are set up for all the periods in your forecast plans and any offsets before you submit the plans for recalculation. If accounting periods are missing, the process ends with an error.
Create revenue recognition and reclassification journal entries before you recalculate revenue forecast plans to ensure that forecast reports are properly updated. For more information, see Revenue Recognition Forecast Summary Report and Revenue Recognition Forecast Detail Report.
To recalculate revenue forecast plans:
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Go to Revenue > Revenue Recognition Plans > Recalculate Revenue Forecast Plans.
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Select a period from the Recalculate as of Period list. Revenue forecast plans are aligned with actual revenue plans through the period you select.
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Filter the list of revenue forecast plans as desired. The filters you select become your default for this page.
Click Reset to restore the filters to their status when you opened the page.
Completed revenue forecast plans and those without a reforecast method are automatically excluded from the list.
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Check or clear the Select Individual Plans box:
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When you check the box, only the revenue forecast plans you check in the Select column are recalculated. When there are multiple pages of plans and you click Mark All or Unmark All, only the plans on the current page are affected.
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When you clear the box, the list of plans displayed is limited to 50.
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Click Submit to begin the recalculation process. The Process Status page opens automatically.
The Revert to Original button recreates revenue forecast plans based on the current revenue element information. This information include revenue amount, revenue recognition forecast rule, and forecast start and end dates if applicable.