Unit Forecasting

The user will be able to forecast unit based revenue using this functionality, at a project level. Apart from unit forecasting, the user will be defining the method of calculation which will form the basis for the quantity update of the forecast lines, which will then be available for project billing. In the same process the user can specify the revenue recognition method, if the unit billing has to be deferred over a period of time.

Unit forecasting form

Unit forecasting is the new form that has been created, where users can enter the unit forecasts. The data can be imported from WBS too, where the WBS lines for the transaction type item will be imported into this form using forecast model defined in Unit billing parameter.

In this form, as soon as the forecast is created an item requirement is generated behind the scenes.

Go to Project management and accounting > All projects > Select the project > Unit billing tab > Unit billing forecast

This form comprises of two sections:

Left hand section – Where all projects and subprojects will be listed from the current legal entity.

Right hand section – This section is further divided into two fast tabs:

Overview – Displays the unit billing forecasts for the selected project. If the parent project is selected then it all the unit billing of project and subprojects are displayed.

General – Details of the line selected on the overview tab are displayed here.

Fields available on Overview tab are as follows:

Fields Description
Method of calculation This field is used to derive the quantity that has to be updated for the forecast line, when the Quantity Unit proposal is generated.

Based on the method selected in this field the quantity that can be updated for the line is proposed, based on resource timesheet and team timesheet. Below are the methods of calculation available to handle user timesheet records to update quantity.

Manual: This method of calculation allows users to update the quantity manually for the proposal line which is created in update and post unit proposal, however the user will be able to update these quantities to anything that is desired.

Resource per day
Resource per week
Resource per month
Resource team per day
Resource team per week
Resource team per month

In the above methods, the timesheet hours are considered for the quantity update. For example, when set to Resource per day, the timesheet entered for the resource for the day will be considered as quantity one. In case there are three resources booking time for the same project on the same day then this quantity will be three.

These are the proposed values, however the user will be able to update these quantities to anything that is desired.

However, for the methods where team is included irrespective of the number of resources, the quantity will be considered as one for the quantity update.

Quantity per day
Quantity per week
Quantity per month
Quantity per quarter
Quantity per year

In these methods of calculation, the proposed quantity will be considered for the period specified in the Periodic quantity.

For the method of calculation of type – Quantity, the Periodic quantity update field is enabled for the user to update quantity that has to be updated for the period chosen in the method of calculation. For example, if this is 2, and the method of calculation is Quantity per week, then the quantity update will be 2 per week of update.
Project name Shows the project name.
Activity number Shows the activity number transferred from WBS or manually selected on this form.
Activity name Shows the activity name based on activity number.
Item number Shows the item number transferred from WBS or manually selected on this form.

Once the record is saved, item number cannot be modified.
Description Shows the item description based on item selected. user will be able to modify item description field to anything that is desired.
Sales quantity Shows the sales quantity transferred from WBS or manually entered on this form.
Unit Unit of measure defaults from the selected Item.
Sales price Shows the sales price amount transferred from WBS or manually entered on this form.
Currency Displays the sales price currency.
Start date Shows the start date transferred from WBS or manually entered on this form.
End date Needs to enter manually on this form.

The buttons available on this Overview grid are as follows:

Buttons Description
New Creates a new item forecast line.
Delete Delates the item forecast line.

The buttons available on the action pane are as follows:

Buttons Description
Save Saves the records on the form.
General ledger preview Shows the ledger entries that will be impacted after processing the selected line.

There are three tabs added to the below grid. Details and fields on these grids are as follows:

General Tab
Fields available on this tab are as follows:

Fields Description
Category The project category to which the item is associated is displayed in this field. User will be able to modify Category value to anything that is desired.
Line property Displays the line property of the transaction. User will be able to modify line property value to anything that is desired.
Method of Calculation Displays the method of calculation chosen on the forecast line. If the Method of Calculation is a quantity related then the next field – “Periodic quantity” will be enabled to enter the quantity value.
Calendar Calendar that has be considered for the method of calculation is displayed in this field.
Periodic quantity This field is enabled only when method of calculation is Quantity related, then user will be able to update fixed quantity for the period.
Proposal Ignores forecast dates Based on this checkbox being set to yes or no, the forecast dates are considered for the proposal.
When set to “No” – the forecast dates are honored, or else they are ignored while generating the quantity proposal.
Model Displays the Unit forecast model used in the forecast.
Inventory dimensions The mandatory inventory dimensions are displayed in this tab.

Unit Forecast tab
In this tab the user will be able to allocate the forecast lines into various periods. This is more for reporting purposes. The fields available on this grid are as follows:

Fields Description
Date Displays the date of the unit forecast line.
Sales quantity Displays the sales quantity defined on the forecast line.
Unit Displays the unit of measure.
Amount Displays the Forecasted amount.
Currency Displays the forecasted amount’s currency.

The buttons available on this grid are as follows:

Buttons Description
Forecast allocation The forecast lines will be split/allocated into multiple lines based on this field.
The options available are:

Manual – Where the user can manually allocate the forecast line.
Day – The forecast line will be split for the number of days lying between start and end date of the forecast line.
Week – The forecast line will be split for the number of weeks lying between start and end date of the forecast line.
Month – The forecast line will be split for the number of months lying between start and end date of the forecast line.
Manual quantity update Based on this checkbox the manual update is possible. Though the allocation quantity is updated based on the choice made in the forecast allocation, the user can update the fields manually if this option is set to yes.
Though the user updates the lines in this tab, the same is not reflected onto the forecast lines at the header level.
Total forecast quantity Displays the total quantity forecasted.

Revenue recognition tab
This tab show the revenue recognition details selected on line in overview tab. The fields available on this grid are as follows:

Fields Description
Revenue recognition The methods that available for revenue recognition is displayed in this field.
Immediate – Revenue is recorded immediately.
Deferred schedule – Where the revenue amount is split over the revenue periods. Once this option is selected, the related fields will be enabled. However for the user to be able to choose this value, the category associated with the item should be setup as a deferred revenue category. Refer the Deferred revenue category setup.
Revenue period If the revenue recognition method is deferred then the deferral period is displayed in this field. This value is arrived from the deferred revenue ID.
Category Category is displayed – Deferred revenue category used for revenue recognition is displayed in this field.
Deferred revenue item Displays the item that is being deferred.
Posted revenue Displays the posted revenue – Posted revenue category used for revenue recognition is displayed in this field.

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