Forecast Types

Use the Forecast Types function to enter, change, and delete forecast types. Use forecast types to predict seasonal or current trends based on summary sales history for inventory items when the Forecast and Economic Order Quantity (EOQ) reorder quantities are calculated. Forecast types can be assigned to an inventory item location.

Creating a Forecast Type

  1. Click the New button, on the toolbar, to open a blank forecast type record.
  2. Enter a new forecast type in the Forecast Type ID field. To copy forecast type information from a similar record for a new forecast type, select the existing forecast type from the Copy From field.
  3. Enter a description of the new forecast type in the Description field.
  4. Enter a positive or negative percentage for the forecast type in the Adjustment % field.
    • To use the forecast usage amount without any further adjustment to the weighted sales history amounts when reorder quantities are calculated, enter 0%.
    • To increase the amount of the forecast usage, enter the percent to increase. (For a 15% increase enter 15.00.)
    • To decrease the amount of the forecast usage, enter the amount to decrease the weighted history amounts as a negative number. (For a 15% reduction of the forecast usage, enter -15.00.) This Adjustment % is also used to calculate the annual usage amount used in the Economic Order Quantity (EOQ) calculation.

    Note: Use a minus sign (-) to indicate a negative forecast.
  5. The Back Period column designates which fiscal period sales history amounts are used to calculate the forecast usage. The back period is the actual fiscal period into which you enter your weight factor numbers.

    When a weight factor is assigned to a Back Period row, the system uses the sales history for that fiscal period prior to your calculate reorders date for the item.

    Example: If the Calculate Reorders function is run and the Back Period 7 row is assigned a weight factor of '40', 40% of the summary sales history for Fiscal Period 7 (12-period fiscal year) is added to the amounts calculated for the other back period rows assigned a weight factor when the forecast usage amount is calculated.

    The number of periods displayed in the Back Period column depends on the number of periods you selected when you set up your company.

  6. Enter a number to weight the forecast, for the selected period, in the Weight Factor field. Note: The total of the weight Factor amounts you enter must be 100 percent.

    Weight Factor is to use to determine the percentage of the sales history quantity for each fiscal period you want to use to calculate the forecast usage. The sales history for each back period row assigned a weight factor is multiplied by that weight factor. The results for each fiscal period are then totaled to calculate the forecast usage.

  7. The Remaining Amount is the amount that needs to be applied to the weight factor. This amount needs to be zero before exiting the screen.
  8. Save your changes.

Editing a Forecast Type

  1. Select a forecast type to edit from the Forecast Type field.
  2. Edit the fields as necessary.
  3. Click the Save button, on the toolbar, to save any changes made to the forecast type.

Deleting a Forecast Type

  1. Select a forecast type to delete from the Forecast Type field.
  2. Click the Delete button, on the toolbar, to delete the selected forecast type.
  3. Click Yes at the "Are you sure you want to delete selected record(s)" prompt.