A forecast schedule definition lets you define how revenue should be apportioned when you run Generate Forecasts. You define the proportion of revenue to be forecast and at what intervals. Once you have created a forecast schedule definition, you can assign it to one or more recognition templates.
Forecast schedule definitions are optional. If you do not assign a forecast schedule definition to a template, forecast revenue is apportioned according to the template's own settings. For example, if you recognize revenue upon completion (Template Type=Deliverable) all revenue will be forecast on the delivery date, if you recognize revenue at monthly intervals (Template Type = Equal Split - Monthly) revenue will be forecast monthly, and if you recognize revenue using % complete (Template = % Complete) all revenue will be forecast on the completion date because the system does not have any information on how the % complete value will change over time. By creating a forecast schedule definition and assigning it to the template, you can calculate forecast values using a different rule.
Regardless of whether or not you use a forecast schedule definition, you can modify forecast amounts before submitting.
You might know from experience that for a source record with an expected duration of 12 months, you usually receive 25% of revenue at the end of Period 4, then another 25% at the end of Period 8, and the remaining 50% at the end of Period 12. So you might want to create a forecast schedule definition something like this:
Period Number
% Split
4
25
8
25
12
50
If you assign this forecast schedule definition to a % Complete recognition template used by a source record with a value of 12000, when you run Generate Forecasts the value will be apportioned as shown in column 2 below. Whereas if you allow forecast revenue to be calculated according to the template's own settings, the value will be apportioned on the completion date as shown in column 3.
Period Number
Apportion Using the Forecast Schedule Definition
Apportion Using the % Complete Template
1
2
3
4
3000
5
6
7
8
3000
9
10
11
12
6000
12000
When creating forecast schedule definitions it is useful to have an idea of the likely duration of a source record (such as a project) so that you can apportion the forecast values over the whole duration. For example, if the source record in the example above completed after six months, only 25% of the value will have been forecast.
You might be recognizing revenue using an Equal Split - Monthly recognition template, but want to forecast revenue quarterly. For source records with an expected duration of 12 months, you might want to create a forecast schedule definition something like this:
Period Number
% Split
3
25
6
25
9
25
12
25
If you assign this forecast schedule definition to an Equal Split - Monthly recognition template used by a source record with a value of 12000, when you run Generate Forecasts the value will be apportioned as shown in column 2 below. Whereas if you allow forecast revenue to be calculated according to the template's own settings, the value will be apportioned in equal amounts at monthly intervals as shown in column 3.
Period Number
Apportion Using the Forecast Schedule Definition
Apportion Using the Equal Split - Monthly Template
1
1000
2
1000
3
3000
1000
4
1000
5
1000
6
3000
1000
7
1000
8
1000
9
3000
1000
10
1000
11
1000
12
3000
1000
Forecasting at Primary Object Level
You might decide to forecast revenue at your primary object level, and to recognize revenue on objects at the lowest level in your object hierarchy. In this scenario a primary object would have a recognition settings record of type Forecast and its associated recognition template would have a forecast schedule definition. Whereas the recognition settings records for source objects at the lowest level in your object hierarchy would be of type Actual and their associated recognition template would not have a forecast schedule definition.
Illustration of Using a Forecast Schedule Definition on a % Complete Template