Before you can create a net revenue forecast, it needs to be configured to meet your agency’s needs i.e. what information do you want to include on the forecast, what method do you want to use to forecast the revenue etc.
The net revenue forecast is configured from the settings module > finance > net revenue forecast methods. Configuration is usually managed by a system administrator or finance.
ON THIS PAGE YOU WILL FIND: |
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CREATE A NEW METHOD
The method determines what quotes and jobs to bring into your forecast, what rules to setup on how to factor in the revenue from those quotes and jobs, and how the revenue is distributed over future months.
In WorkBook you can create as many forecast methods as you wish however, you can only have one method per forecast.
To create a new method:
Go to the settings module > finance > net revenue forecast methods
Click on create new profit forecast method button
Give your forecast method a name , ensuring it’s a name that’s recognisable (see examples below)
WHAT TO INCLUDE ON YOUR FORECAST
Once you have given the new forecast method a name, you need to decide what items you want to include in your forecast.
Price Quote Status
For each method, select which price quote status you wish to include in the forecast
PRICE QUOTE STATUS NUMBER | DEFINITION |
|---|---|
Status 10 | Under Preparation |
Status 20 | Waiting for Approval |
Status 40 | Approved Internally |
Status 50 | Approved by Client |
Some agencies only want to include price quotes in status 50 (approved by client) while other agencies are happy to include all potential price quotes into their forecast
Price Quote Probability
You can also choose if you want to use the probability on a price quote
For example: a price quote that has a total net revenue of $100,000 with a 25% probability of going ahead would factor in $25,000 into the forecast
Pipeline Status
Like price quote statuses, you can also include which pipeline statuses (if any) you wish to include in your forecast
Pipeline Probability
If including pipelines in your forecast method, you can also choose to include the pipeline probability
Forecast Method
The forecast method allows you to choose how you want future revenue to be distributed across the months. There can be separate methods for:
Price quotes that sit on non time & materials jobs
Price quotes that sit on time & materials jobs
Pipelines
For more information on forecast methods see https://tangram.atlassian.net/wiki/spaces/TGKB/pages/885915753/NRF+Configuration+%3E+Forecast+Methods?focusedCommentId=885883063#comment-885883063
Clients
WorkBook contains different kinds of clients, in this section you decide which type of clients to include in the net revenue forecast
On Hold Jobs
When the net revenue forecast is generated do wish to include jobs that have a status of “on hold”
Limitations & Rules
How do you want to limit amendments after the forecast has been generated:
NRF & PQ must balance e.g. the net revenue on a price quote is $50,000 the NRF must also equal $50,000
Flexible, but do not allow to exceed total PQ amount e.g. the net revenue on a price quote is $50,000 the NRF cannot exceed $50,000
Flexible, no limitations e.g. the net revenue on a price quote is $50,000 the NRF can be any amount
Most agencies want their price quote and net revenue forecast to balance
SUB GRID SETTINGS
For each method you create there are additional details that need to be setup in the sub grid.
Finance Account Ranges
The finance account ranges tab allows you to setup an account range for actuals reporting. This particularly useful for looking at year to date on a client.
Select the forecast method you wish to add the account range for
Go to the finance account ranges tab > click the + icon to add the following:
Company
From Account
To Account
Job Responsible
In the job responsible tab, you can add roles so the NRF responsible & viewer fields populate automatically on a net revenue forecast.
NRF Responsible
This is the role responsible for reviewing, editing & approving the net revenue forecast.
Viewer/s
Viewers are the roles that can view a net revenue forecast once it is published.
This is read only access, viewers cannot edit the NRF
Select the forecast method you wish to add the account range for
Go to the job responsible tab > click the + icon
Add the role/s > check the box for NRF responsible &/or viewer
Pipeline Responsible
Like the job responsible tab, in pipeline responsible you can add roles so the NRF responsible & viewer fields populate automatically on a net revenue forecast.
Select the forecast method you wish to add the account range for
Go to the pipeline responsible tab > click the + icon
Add the role/s > check the box for NRF responsible &/or viewer
