Net Revenue Forecast > Configuration

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:

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