Setting up Trend Assumptions for Trend-Based Forecasting (Periodic Forecasting Only)

For periodic forecasting, you have the option to set up trend-based forecasting, if your administrator enabled the feature. As you select the trend, the data is calculated based on the logic of the method. You can apply an increase / decrease on top of that to determine the future forecast.

Trend-based forecasting methods can be used for any line items where the cash forecast can be determined based on historical trends. Trend-based methods can be used only with Periodic forecasts (weekly or monthly). Trend-based methods might not be ideal for forecasting cash but could be used if the cash inflows and outflows use a standard pattern.

To set assumptions for trend-based forecasting:

1. From the Home page, click Periodic Cash Forecast, and then click the Trend tab.
2. Select the appropriate members in the POV.
3. For each line item, in the Trend Method Assumptions column, select the trend method to use for the line item.
4. In the % Increase / Decrease Assumptions column, enter the percentage increase or decrease.
5. Save the form after entering assumptions, which triggers calculations to calculate cash inflow and outflow. Cash forecasts for each line item are calculated based on the assumptions you define, applied to the driver input.

   You can see all of the updated cash outflow forecasts in the Rolling Forecast form. See Performing Daily and Periodic Cash Forecasting.

For details about the trend methods used in Predictive Cash Forecasting, see About Trend-Based Forecasting Methods.

Note:

For Trend calculations, Receivables Invoices are calculated based on actuals existing in Customer Receipts, as there are no actuals for Receivables Invoice. Similarly, Payables Invoices are calculated based on actuals existing in Supplier Payments, as there are no actuals for Payables Invoices. For Receivables Overdue and Payables Overdue Invoices, trends will not work as there is no specific actual data.