Setting Up Sales Forecasting

The NetSuite forecasting feature is simple to use and available with little set up required. See Forecasting Preferences. As sales reps create opportunities and close deals, NetSuite automatically includes these amounts in your sales forecast.

The Calculated Forecast

NetSuite calculates your sales forecast as the sum of the following:

Opportunities with no estimates attached or with estimates that are not set to be included in the forecast
Estimates set to be included in the forecast that have not been converted to closed sales
Unbilled sales orders that have not been converted to cash sales or invoices
Cash sales and invoices within the time period you are forecasting

If you use weighted forecasting, the calculated amount for each opportunity or estimate is multiplied by the probability of close. For example, an opportunity with a total of $1000 and a 40% probability of close would have a weighted forecast amount of $400.

Forecasting Updates and Overrides

No one has a better feel for their sales forecast than the sales rep. If the calculated forecast does not match what a sales rep anticipates for their sales numbers, they can override the forecast with the Forecast Editor.

When a reps saves their forecast, NetSuite creates a snapshot of the rep's best prediction of their sales at that point in time. To ensure that the company-wide forecast is accurate, reps should review and update their forecasts on a regular basis.

Sales managers can use the Manager Forecast Editor to enter override forecasts that roll up into reports viewed by successive levels of your organization. The Manager Forecast Editor uses the judgement and experience of sales managers to know how accurately individual reps report their sales and pipeline.

Sales reps cannot see manager overrides to their forecasts. Sales reps continue to work for the best deal they can close regardless of what the manager thinks is a more likely outcome.

Three-tiered Probability System

When sales reps create opportunities and estimates, they place each record into one of three categories: worst case, most likely, and upside. These categories, which you can rename as required, indicate how likely it is that a deal will close. Use worst case for deals that are likely to close. Use upside for deals that are not likely to close. Use most likely for deals that are somewhere in between the other two categories.

This three-tiered probability system gives the sales rep initial control over how an opportunity is reflected in the forecast. This initial control provides a level of accuracy the moment the sales rep enters the opportunity.

Forecast KPIs and Snapshots

With NetSuite you can view real-time forecast Key Performance Indicators (KPIs) and Snapshots on your dashboard. This includes closed sales and recurring revenue as well as the opportunities and quotes in your pipeline.

You can show a variety of forecast key indicators and snapshots that provide an accurate view of your forecast numbers.

You can view any of the following forecast snapshots on your dashboard:

Snapshot	Description
Total Open Estimates	Shows the estimates (quotes) that are open as of the date you select.
Total Open Opportunities	Shows the opportunities that are open as of the date you select.
Forecast by Status	Shows a forecast divided by customer status, which provides a sense of where potential sales are in the sales cycle.
Sales Reps by Forecast	Shows the top sales reps by forecast for the date range you choose.

When you are logged in as sales manager, forecast and quota key indicators show the forecast and quota amounts for your team. Sales reps see their personal forecast and quota amounts.

You can also include Historical Metrics in your forecast snapshots and reports.

To add key performance indicators and snapshots, go to Home > Customize this Page. For more information, see Dashboard Personalization.

Sales Management Snapshots

You can add sales management report snapshots as dashboard portlets. These snapshots provide real time sales, forecast, and order totals, visible by sales team.

The following portlets are available:

Portlet	Description
Sales Managers by Forecast	Shows the sales forecast for each sales team.
Sales Managers by Sales Orders	Shows the approved sales order totals for each sales team.
Sales Managers by Sales	Shows the sales totals for each sales team.

To show sales management snapshots:

On your Home tab, click Personalize Dashboard.
In the Add Content frame, click on Report Snapshots.
Click Sales Management.
Drag the portlets you want to show onto your dashboard.

Click the icon next to a manager to expand or collapse the sales team. Click a currency amount or the View Report link to open a report relevant to the snapshot. For example, when you click a forecast amount for a sales rep, the Sales by Sales Rep Detail report opens.

Forecast Reporting

NetSuite provides extensive Forecast Reports to enable you to manage and report your forecasting data. NetSuite provides the following types of forecasting reports:

Accuracy Reports – Forecast Accuracy reports provide another layer of checks and balances that you can use to sharpen your forecast based on past performance. See Forecast Accuracy Report and Calculated Forecast Accuracy Report.
Summary Reports – Summary reports such as the Sales Forecast vs. Quota Report bring together all of your forecast data. See Forecast Reports.
Detail Reports – Detail reports provide a granular look at your report data. For example, the Forecast by Sales Rep Summary Report lists each sales rep's forecast for the period you define.