Specifying Drivers and Trends

Specify drivers and trends for standard forecasts in Driver and Trend Based . Specify drivers and trends for rolling forecasts in Rolling Forecast . Calculated values for the accounts associated with your drivers display on Driver-Based Revenue and Driver-Based Expense on the tab for your forecasting method.

For details about the trends provided with Financials, see About Trends.

1. For standard forecasting: Click Driver and Trend Based , and then Driver Based Expense Planning| Driver Based Revenue Planning. For rolling forecasting: Click Rolling Forecast and then Driver Based Expense Planning| Driver Based Revenue Planning.
2. Specify your context by selecting point of view dimensions such as specific product line or type of expense such as operating expenses, and then click .
3. Perform a task in Trend:

   • To set values by adjusting using current, projected, or past values, select a trend, and estimate the percent by which each value is likely to change in % Increase/Decrease. E.g., to plan for a 3% overtime pay increase, you would set Overtime to Prior Year Actual Average, and enter .0 3 in % Increase/Decrease.

     For rolling forecasts, trends apply to all years in the rolling forecast range. When the current time period is updated, forms are updated to add or drop time periods to reflect the updated rolling forecast range; trends are always calculated for the entire rolling forecast range.

   • To set values manually without referencing historic data, select No Trend, and then enter values in Adjustment (+/ -).

4. Double-click Year Total to calculate assumed values.
5. View values for driver-calculated accounts:
   1. Click Driver Based Expenses | Driver Based Revenue, and then Calculated Year Total to view your annual, quarterly, or monthly driver-derived values. If they’re insufficient or incorrect, or inappropriate, you can override them in any period.
   2. Specify your context by selecting point of view dimensions such the year and scenario, and then click .
   3. Expand Adjust Year Total to access the period for which to modify driver derived values, and enter new values.
6. To adjust calculated values for accounts or drivers for rolling forecasts, click Driver Adjustments and then enter a value in the Adjustment (+/ -) column.
7. To adjust calculated values for accounts for trends for rolling forecasts in Expense, click Trend Adjustment and then enter a value in the Adjustment (+/ -) column.