Use this page to develop a sales forecast by product-customer combination, with values defaulted from a statistical forecast by unit quantity as the basis. You can also make quantity adjustments as override values. You can then manage the final sales forecast as an independent input to the Consensus Plan.
Commercial Planning – Units
Before you start
You can specify the context of the customer region and product-family data combination that displays using the context selectors at the top right. Both context selectors only give options for top level hierarchies.
When you develop a sales forecast you need several reference inputs:
- Historical demand
- Open orders
- Demand plan
- Prior consensus plan
- Promotion and opportunity uplifts
You can derive the sales forecast from the statistical forecast by default or build it from a zero base, according to the parameters you apply. In both cases, you can override the base values if you manually enter other values.
There are two options to build the sales forecast. The first provides a greater level of data including promotions, opportunities, and bundle revenue apportionment. A forecast is created for an individual customer-product combination. The second gives less detail, but enables forecasts to be created for multiple customer-product combinations.
Parameters
Parameters are set by a System Administrator at the global level and apply to all product-customer combinations (see D2000 - Global Stat Parameters page). The parameters are shown in the right-hand panel as Effective Parameters.
- You can adjust the parameters for the specified product-customer combination using the fields shown in the left-hand panel as Edit Parameters.
- When you adjust parameters for a specified combination, the adjusted settings display in the Effective Parameters panel. Such parameter changes aren't applied globally.
| Parameters | Values |
| Default Commercial Price | The standard configuration provides options for price basis. However, in the configuration, system price is the only basis used for price. This parameter is set in Global Parameters and you shouldn't adjust it. |
| Periods History for ASP | Number of history periods, on which the Average Sales Price is calculated in the system. |
| Active Commercial Plan | The standard configuration provides options for the basis of the commercial plan. However, you can use the units option in the immediate deployment of the configuration |
| Default Commercial Plan | You can specify the default values for the commercial plan from the following options. In both cases, default values may be manually overridden. Select the option field and then select an option to confirm the setting:
|
| Perpetuate Unit Overrides | This option causes override values to persist from the period in which the initial override value is entered, to all following periods. Checking the box enables this option. |
Steps
To change the data that displays on the page, select an option from the context selectors.
To search for an option, enter a numeric reference ID, alphabetic name, or a partial name in the Find... field.
Planning Status
This section indicates if the Commercial Plan is open or closed.
View Settings
You can set the display parameters in the View Settings card.
Parameters
| Parameters | Values |
| View Years History | The number of years history you can view. If you enter more than the maximum history available, then the maximum available displays. |
| View Years Future | The number of future years you can view. If you enter more than the maximum available, then the maximum available displays. |
| View Period Type | Provides options to view planning periods as either Fiscal Year or Rolling Year, and the default setting is Fiscal Year. |
| Future Only | Enables you to display future planning periods only. When you select this parameter, the tables and charts display current and future planning periods only. This parameter operates as an override of the View Years Future setting. If you deselect it, the displayed values include history. |
| Table: Totals Only | Enables you to display annual totals only. When you select this parameter, tables display the summary totals for each of the selected years. If you deselect it, the displayed values return to monthly periods. |
Commercial Planning Revenue chart
The Commercial Planning Revenue chart provides a graphical view of several inputs to the commercial plan. This includes Selected History (R), Final Stat Forecast (R), Final Commercial Plan (R) and Prior Consensus Plan (R).
Parameters
| Parameters | Values |
| Base Units | |
| Stat Forecast (U) | The statistical forecast for the item you select. |
| Rounded Stat Forecast (U) | The values in this data row are derived from Stat Forecast. |
| Commercial Plan Override (U / ROS) | You can enter override values into the current and future period cells depending on the product effectivity status. |
| Base Commercial Plan (U) | The values are derived from the values held in the Default Commercial Plan or Commercial Plan Override |
| Base Pricing and Revenue | |
| Forecast Base Commercial Price (R/U) | The values are derived from Selected Price (R/U) unless these values are overridden by User Adjusted Commercial Price (R/U) or Commercial Price Uplifts. The values here are used to compute Base Commercial Plan (R). |
| Base Commercial Plan (R) | The values are calculated from the values in Base Commercial Plan (U) multiplied by the values in Forecast Base Commercial Price (R/U). |
| Promotional Uplifts | The value of promotional uplifts for the item you select. |
| Effective Cannibalization (U) | The remaining value of overlapping promotions for the same product-customer effort. |
| Effective Promotional Uplift (U) | The quantity uplift for an item. |
| Final Commercial Plan (U) | The final commercial plan value, in forecasted units for the item selected. |
| Total Volume at Base Price (R) | The total volume at the base price for the item you select. |
| Promotional Discount (R) | The promotion plan discount where Discount is specified as the Promotion Mechanic. |
| Promotional Impact (R) | The net revenue adjustment value because of a promotion effort. |
| Final Commercial Plan (R) | The commercial price after any adjustments to forecast input units. |
| Final Commercial Price (R/U) | The commercial price after any adjustments to forecast input units and revenue. |
| Contribution | |
| Standard Cost (R/U) | The forecast standard Cost (R/U) for the item you select. |
| COGS (R) | The cost of goods sold. |
| Contribution Margin (%) | |
| Contribution (R) | |
| Comments | Use the field to add notes to the archived record. |
Commercial Planning Composition chart
This chart displays Base Commercial Plan, and the impact of Promotional Uplift values in unit quantities by planning period, for product-customer combination you select.
Parameters
| Parameters | Values |
| Effective Promotional Uplift (U) | The promotional uplift effect, in units, for the item you select. |
| Base Commercial Plan (U) | The base commercial plan quantity, in units, for the item you select. |
Commercial Planning Changes chart
This chart displays 1 Price Change (R), and 2 Units Change (R).
Bundle Adjustments chart
This chart provides a line-by-line view of any bundle adjustments in line with the commercial plan. It lists out the final commercial plan and any bundle adjustments (revenue and commercial plan). This includes total dependent and independent demand.
Parameters
| Parameters | Values |
| Final Commercial Plan (R) | The commercial price after any adjustments to forecast input units. |
| Bundle Revenue Adjustment (R) | Displays the revenue adjustment you bundle. |
| Bundle Adjusted Final Commercial Plan (R) | Displays the unit adjustment you bundle in the Final Commercial Plan. |
| Total Dependent and Independent Demand (U) | Displays the units for both the Total Dependent and Independent Demand. |
