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What is sales forecasting ?
Sales forecasting is the prediction of the future sales of a particular product over a specific period of time based on past performance of the product, inflation rates, unemployment, consumer spending patterns, market trends, and interest rates.
In the preparation of a comprehensive marketing plan, sales forecasts help the marketer develop a marketing budget, allocate marketing resources, and monitor the competition and the product environment.
Sales forecasting uses past sales figures to predict the short-term or long-term future performance to enable sound financial planning.
For shops and stores, market research may yield the following indicators for deriving initial forecasts.
Importance of sales forecasting :
Sales forecasting is a crucial part of the financial planning of a business. It’s a self-assessment tool that uses past and current sales statistics to intelligently predict future performance.
With an accurate sales forecast in hand, you can plan for the future. If your sales forecast says that during December you make 30 percent of your yearly sales, then you need to ramp up manufacturing in September to prepare for the rush.
One simple sales forecast can inform every other aspect of your business.
Sales forecasting in Cloud erp:
1) Navigate as follows :
Sales>> Sales Forecasts>>Create Sales Forecasts
2) Enter :
a) Create a period for which the forecast is to be made.
b) The warehouse for which the forecast is to be made.
c) The location for which the forecast is to be made.
d) The product category for which the forecast is to be made.
3) Now,after the sales forecast is created by clicking on the create button,
Navigate as follows :
Sales >> Sales Forecasts >> Sales Forecasts
And, we can view the tree view of the Sales forecasts for the period we have created.
4) Now,open each record one by one and manually enter the the “forecast quantity” for each product according to the requirements for forecasting and click on save.
5) Navigate to :
Warehouse >> MRP Analysis >> Run MRP Analysis
6) Now, create a new Run MRP Analysis and :
a) Give a name for Analysis reference
b) In the Analysis type,choose “Analysis from Sales Forecasts” for the sales forecast feature to work and click on save.
7) Now , give the period that was created by the user and click “Get Sales forecasts” button.
By doing this all the sales forecasts items appear in the tree view.
After getting the list of items, click “Analysis” button
8) Now , click “Get Analysis Results”
Adding filters for the output is optional.
9) A new form appears which shows the analysis results.
Analysed items can be seen in the first tab.
10) In the next tab i.e.“Sub-assemblies Raw materials Analysis”,we can see items that are to be procured.
Select according to the requirements and click “Procure All” button.
11) A wizard opens which shows us the clubbed line items that contains both,items to be purchased and items to be manufactured or either of them.
Click “Procure” to proceed.
12) Now,see the third tab, i.e. “Procured Sub-assemblies Raw materials”
It contains the Purchased and Produced items.
13) Now Navigate to :
Purchase >> Request for Quotations
A RFQ gets generated for the items to be purchased.
14) Open the record and see the record, source document contains the forecast that was created.
15) Navigate to :
Manufacturing >> Manufacturing >>Manufacturing Orders
Two manufacturing orders are created from items to be produced.
16) Open any on record and see,