Overview

After you have analyzed the previous forecasting cycle, you need to revise the planning scenario settings. Scenarios allow you to maintain both the main and the additional scenarios of the business development and environment. Within each scenario, you need to draw up your own plan structure, establish specific assumptions, and define sequential steps in the planning process.

Sales forecasting scenarios usually have settings and structures that differ from the master operating planning scenarios. As a rule, sales forecasting uses product categories as groups of products that you can easily manage and forecast.

Specify assumptions both at the scenario level and for each type of plan. You should record assumptions and expected business changes in master data, such as changes in the structure of an enterprise, a warehouse or a store (closing/opening), an organization, or an item category.

The data population tool should be used to automate the forecast filling process. The tool has two options: Fill in by sources and Fill in using formula.

The Fill in by sources option allows you to:

• Use a wide range of standard plan filling templates (data composition schemas).
• Load a data composition schema from an external file.
• Use any infobase data to fill plans (Sales, Available stock, Purchase orders, Customer orders, and other).
• Use data from previous plans.
• Use information about minimum and maximum balances.
• Use data on sales prices and vendor prices to fill plan totals.
• Create any custom query in the infobase.
• Use several data sources at the same time and combine them.
• Customize filters and get data with a different data structure.
• Use accumulated data for the period; to date; period moved for...

The Fill in using formula option allows you to:

• Draw up arbitrary formulas using various built-in operands (Available stock, Sales forecast, and other), operators, and functions.
• Customize operands (the calculation formulas support 1C:Enterprise language).
• Use a specific formula for each plan item.
• Use arbitrary data selections.
• Use accumulated data for the period; to date; period shifted by...

As a result of the process, planning scenarios and plan profiles are maintained for demand planning.

Maintain scenarios and plan profiles for demand planning flowchart

Paths

How to create planning scenarios

1. Go to Budgeting and planning → Settings and catalogs and then click Planning scenarios under Sales and operations plans.

2. Create a scenario or copy an existing one.

How to set up capturing sales forecast data

Main settings

1. Open the Sales & operations planning scenarios document, and then click the Main tab.

2. Specify the name in the Description field.

3. Select the Time fence relevant to the raw sales forecast data requirements.

4. Select the period display option: Range of dates or Period number (within a year).

5. Select the Only by quantity option for Sales forecasting.

6. To enable breaking down product category figures into items, considering the rating and speed of item sales, select the Calculation by sales speed check box, if applicable.

Plan structure

1. Click the Plan structure tab.

2. Click Create step, specify its short description related to the sales forecasting cycle, and select the Demand planning option.

3. Select the Step and click Create to create a new plan profile within the step.

4. In the Plan profile document, click the Main tab.

5. In the Use for field, select the Sales forecast by categories.

6. Specify the short description, for example, "Sales forecast by BU manually".

7. Assign the User in charge of the settings.

8. Select the Cumulative option.

9. Click the Plan dimensions tab.

10. Select the Business unit check box.

11. Optionally: Select any other additional dimensions: Warehouse and/or Store format. To indicate a specific warehouse for each item, select the Joint plan by warehouses check box.

12. Maintain a new Step and Plan profile to specify entry forms and filling rules, for example, "Sales forecast by BU manually" and "Sales forecast by BU based on statistics".

Information sources

1. Click the Population settings tab.

2. Select the Fill in by sources option to enable tools to populate plans from any pre-configured infobase data source or your custom data source.

3. Select the Disable editing the rule check box to disable rule editing. In this case, the user cannot customize the filling rules. For example, if the plan filling rules are developed by the head of the department, then all other employees fill the plan in accordance with these rules.

4. Specify the Number of default periods to define the default periods shown in the entry form. You can change the number of periods later.

5. Click Save.

6. Click Default filling rules.

7. In the Fill in plan form, click Enable advanced settings.

8. Select the Update plan content option under Filling rule.

9. Add a new source and select the relevant one in the Quantity filling source field. Open the Planning data source and check if it has the Sales data composition schema and the over period data selection option.

10. Specify the Period.

11. Click  and select the Period and Product category in the Grouping settings.

12. Click Save to apply the settings as default for the plan profile.

13. In the plan profile, click Save .

How to set up forecast consolidation and company-specific adjustments

Main settings

1. Go to the Sales & operations planning scenarios list.

2. Create a scenario or copy an existing one.

3. Open the Sales & operations planning scenarios document, and then click the Main tab.

4. Select the Time fence relevant to the raw sales forecast data format.

5. Select the period display option: Range of dates or Period number (within a year).

6. Select the Only by quantity option for Sales forecasting.

Plan structure

1. Click the Plan structure tab.

2. Click Create step, then specify its short description related to the sales forecasting cycle, for example, "Consolidation of raw forecast data", and select the Demand planning option.

3. Select the Step and click Create to create a new plan profile within the step.

4. In the Plan profile document, click the Main tab.

5. Select the Sales forecast by categories option for the following plan profiles:

• Consolidation of raw forecast data
• Adjustments

6. Select the Sales forecast option for the following plan profile:

• Breakdown of sales forecast by item

7. Specify the short description, for example, "Consolidated sales forecast".

8. Assign the User in charge of the settings.

9. Select the Substitute option for plan profiles related to:

• Consolidation of raw forecast data
• Breakdown of sales forecast by item

10. Select the Cumulative option for plan profiles related to adjustments.

11. Maintain another Step and Plan profile to specify different filling rules, for example, "Consolidated sales forecast", "Adjustment for marketing/R&D activities", and other.

Information sources

1. Click the Population settings tab.

2. Select the Fill in by sources option to enable tools to populate plans from any pre-configured infobase data source or your custom data source.

3. Select the Disable editing the rule check box to disable rule editing. In this case, the user cannot customize the filling rules. For example, if the plan filling rules are developed by the head of the department, then all other employees fill the plan in accordance with these rules.

4. Specify the Number of default periods to define the default periods shown in the entry form. You can change the number of periods later.

5. Click Default filling rules.

For consolidation plan profiles:

1. In the Fill in plan form, click Enable advanced settings.

2. Select the Update plan content option under Filling rule.

3. Add a new source and select the relevant one in the Quantity filling source field. Open the Planning data source and check if it has the Sales forecasts by categories data composition schema and the over period data selection option.

4. Specify the Period.

5. Click and specify the Scenario related to capturing the sales forecast.

6. Select the Period and Product category in the Grouping settings.

For adjustment plan profiles:

1. In the Fill in plan form, click Enable advanced settings.

2. Select the Update plan content option under Filling rule.

3. Add a new source and select the relevant one in the Quantity filling source field. Open the Planning data source and check if it has the Sales forecasts by categories data composition schema and the over period data selection option.

4. Specify the Period.

5. Click  and specify the Scenario related to capturing the sales forecast.

6. Select the Period and Product category in the Grouping settings.

For category breakdown into items:

1. In the Fill in plan form, click Enable advanced settings.

2. Select the Update plan content option under Filling rule.

3. Add a new source and select the relevant one in the Quantity filling source field. Open the Planning data source and check if it has the Sales forecasts by categories data composition schema and the over period data selection option.

4. Specify the Period.

5. Click and specify the Scenario related to the sales forecast consolidation (the current one).

6. Select the Period, Items, and Variant in the Grouping settings.

7. Click Save to apply the settings as default for the plan profile.

8. In the plan profile, click Save.

How to set up seasonal adjustments

Main settings

1. Go to the Sales & operations planning scenarios list.

2. Create a scenario or copy an existing one.

3. Open the Sales & operations planning scenarios document, and then click the Main tab.

4. Select the Time fence relevant to the raw sales forecast data format.

5. Select the period display option: Range of dates or Period number (within a year).

6. Select the Only by quantity option for Sales forecasting.

Plan structure

1. Click the Plan structure tab.

2. Click Create step, specify its short description related to the sales forecasting cycle, for example, "Seasonal adj and cash flow forecast", and select the Demand planning type.

3. Select the Step and click Create to create a new plan profile within the step.

4. In the Plan profile document, click the Main tab.

5. Select the Sales forecast option for the plan profile.

6. Specify the short description, for axample, "Seasonal adj".

7. Assign the User in charge of the settings.

8. Select the Substitute option.

Information sources

1. Click the Population settings tab.

2. Select the Fill in by sources option to enable tools to populate plans from any pre-configured infobase data source or your custom data source.

3. Select the Disable editing the rule check box to disable rule editing. In this case, the user cannot customize the filling rules. For example, if the plan filling rules are developed by the head of the department, then other employees fill the plan in accordance with these rules.

4. Specify the Number of default periods to define the default periods shown in the entry form. You can change the number of periods later.

5. Click Default filling rules.

6. In the Fill in plan form, click Enable advanced settings.

7. Select the Update plan content option.

8. Add a new source and select the relevant one in the Quantity filling source field. Open the Planning data source and check if it has the Sales forecasts data composition schema and the over period data selection option.

9. Specify the Period.

10. Click .

11. In the Settings form, select the Apply seasonal index option. Click the hyperlink to review actual seasonal indexes. See how to Maintain seasonal indexes.

12. Specify the Scenario related to the consolidated sales forecast broken down into items.

13. Select the Items and Variant in the Grouping settings.

14. Specify the effective date in the As of: field.

15. Click Save to apply the settings as default for the plan profile.

16. In the plan profile, click Save.

How to set up demand plan release and planning revenue cash flow calculation

Main settings

1. Go to the Sales & operations planning scenarios list.

2. Create a scenario or copy an existing one.

3. Open the Sales & operations planning scenarios document, and then click the Main tab.

4. Select the Time fence relevant to the raw sales forecast data format.

5. Select the period display option: Range of dates or Period number (within a year).

6. Select the By quantity and amount option and specify the Currency for Sales forecasting.

Plan structure

1. Click the Plan structure tab.

2. Click Create step, specify its short name in the Description field, for example, "External sales forecast release", and select the Demand planning type.

3. Select the Step and click Create to create a new plan profile within the step.

4. In the Plan profile document, click the Main tab.

5. Select the Sales forecast option for the plan profile.

6. Specify the short description, for example, "Sales forecast release".

7. Assign the User in charge of the settings.

8. Select the Substitute option.

9. Select the Apply sales prices check box.

10. Select the Payments and Payments (credit) check boxes and specify any technical budget flow item to enable cash flow forecasting.

Information sources

1. Go to the Population settings tab.

2. Select the Fill in by sources option to enable tools to populate plans from any pre-configured Infobase data source or your custom data source.

3. Select the Disable editing the rule check box to disable rule editing. In this case, the user cannot customize the filling rules. For example, if the plan filling rules are developed by the head of the department, then other employees fill the plan in accordance with these rules.

4. Specify the Number of default periods to define the default periods shown in the entry form. You can change the number of periods later.

5. Click Default filling rules.

6. In the Fill in plan form, click Enable advanced settings.

7. Select the Update plan content option under Filling rule.

8. Add a new source and select the relevant one in the Quantity filling source field. Open the Planning data source and check if it has the Sales forecasts data composition schema and the over period data selection option.

9. Specify the Period.

10. Click .

11. In the Settings form, select the Apply seasonal index option. Click the hyperlink to review actual seasonal indexes. See how to Maintain seasonal indexes.

12. Specify the Scenario related to the consolidated sales forecast broken down into items.

13. Select the Items and Variant in the Grouping settings.

14. Select the Source in the Price population source field, for example, the source with the Item prices data composition schema.

15. Specify the effective date in the As of: field.

16. Click Save to apply the settings as default for the plan profile.

17. In the plan profile, click Save.

How to define business assumptions for forecasting

Assumptions

1. Open the Scenario document, and then click the Details tab.

2. Specify key assumptions for sales forecasting at the scenario level.

3. Open the Plan profile document, and then click the Details tab.

4. Specify key assumptions for sales forecasting at the plan profile level.

Future master data

1. Go to the following master data: Product categories, Items, Variants, Business units, Warehouses, Store formats, and other.

2. Check if all business assumptions are recorded in the master data.