1 Reply Latest reply on May 19, 2017 11:49 AM by Patrick Van Der Hyde

    Forecasting requirement based on a target value

    sid bhate

      Hi All, Will try to explain my requirement -


      I have a set of data which gives the follow information(very small sample). This is a transnational level data

      InvoiceNoCustomer name
      Sale Date(dd/mm/yy)
      Item name
      Sale priceSoldbyListpriceDiscount
      12Sid1/1/2017Product AProduct200A300100


      1/5/2017Service AService500C5000
      15Paul1/5/2017Product BProduct1200C1500300
      19Jessie13/5/2017Package APackage650B70050


      Now i want my clients to have a field(which mostly will be a parameter) where they can enter the "Target sales" they want to reach in the next 6 months.


      Based on the target sales the client enters i want to forecast the required sales across the next 6 months looking at the last 1-2 years of data pattern. Other things i wanted to calculated is


      1) How much should the average invoice value be across clients to reach the target

      2) How much should each employee(Soldby) sell to reach the target.(looking at the sales in the last year or so)



        • 1. Re: Forecasting requirement based on a target value
          Patrick Van Der Hyde

          Hello sid,


          1. Average invoice?  How would you think that shoudl be calculated?  I wouldn't think you would want to evenly divide the sales between each account based on a total amount to reach but instead that it should somehow be proportional.  What about new customers or lost customers?  Do you create a report like this today and if so - how do you calculate the per rep values?  Are you going down to the account level as it shows here or do you roll up to the sales rep? 


          2.  is this just Target minus current sales. 


          This thread talks about forecasting but forecasting isn't really a target - it's a look back over time based on previous activity to deterimine what is likely to occur.  I'd be surprised if any sales org used forecasting like that as a motivation for what the sales team should hit.  Don't you want sales to grow faster, higher than previous?   Anyway - a bit more information about the use case and some more sample data (ideally in a workbook) and I think we could probably be helpful.  The forecasting tool doesn't sound like the right thing here because you won't be able to use the forecast values in calculations.  Instead, creating a target based on historical volume/amounts/sales with some percent growth computed for the next 6 months is probably a better way to go.