Net Revenue Forecasts

Overview

Net revenue forecast is a very powerful tool that provides the best possible forecasts for a given fiscal year. It combines actuals from the Finance & Administration module with forecast data from the Price submodule (in the Jobs module) and Pipelines submodule (in the CRM module), and then provides an Excel-like environment where you can change forecast values on the fly.

The Net revenue forecast submodule consists of two grids. The top grid displays the selected company’s clients together with the price quote net revenue, remaining amount, previous revenue, revenue YTD, monthly actuals, and total forecast for each client. You cannot change the values in the top grid. The bottom grid consists of three tabs: Job, Pipeline, and Inter-company. Use these tabs to enter the net revenue forecast values.

Net Revenue Forecast Views

You can change the view for the Net revenue forecast submodule to include or exclude revenues from jobs, pipeline, inter-company, or a combination of these revenue sources. To do this, click  at the top-right section of the top grid, select the revenue options that you want to include in the net revenue forecast, and click Apply. You must select at least one revenue option.

Monthly Forecast Adjustments

The bottom grid allows you to change the values in the month columns in the Forecast section for the selected net revenue forecast. WorkBook automatically updates the top grid to reflect the changes to the forecast values that you enter in the bottom grid.

When you enter a value under any of the month columns in the Forecast section, WorkBook displays a tooltip showing the variance between the price quote amount and your forecast. Depending on the price quote method that you selected in the Settings module, the net revenue forecast and price quote amount may need to balance for the duration of the forecast. WorkBook checks this automatically.

For more information, see Net Revenue Forecast Methods.

Job Tab (Bottom Grid)

The Job tab displays the active and closed jobs for the selected client, and how much the job has cost so far based on the number of hours registered. It also displays, in percentage, how much of the job has been completed and the expected completion date.

Job Tab Columns

The columns on the Job tab uses different formulas to generate values for net revenue forecasts.

  • Company: The company for which the net revenue forecast was created.
  • Job: The job that the company performs for the client. A job can either be active or closed.
  • NRF Responsible: The employee that receives the notification, if you use the input workflow.
  • Price quote net revenue: Total price quote value – purchase value (without profit margin).
  • Remaining amount: Price quote net revenue – Previous actuals – Year to date actuals. This value can get below zero.
  • Previous revenue: The total value of postings on operating accounts before the start date of the financial year of the forecast.
  • Revenue YTD: The total value of postings on operating accounts from the start date of the financial year to the first forecast month (the sum of columns in the Actual section).
  • Burn: The sale value of time registered on the job before the first forecast month.
  • EAC: The sale value of all time entries (no cut dates) + value of remaining scheduled hours.
  • EAC %: EAC / Price quote net revenue.
  • True % complete: Burn / EAC.
  • Expected % complete of _________: The job’s expected completion status, in percent, in the first month of the net revenue forecast.
  • Month columns in Actual section:The value of finance postings on operating accounts in the months before the first forecast month.
  • Month columns in Forecast section: Controlled by the price quote forecast method. If the job has already surpassed the job end date, WorkBook inserts the remaining amount into the first forecast month. For more information, see the Net Revenue Forecast Methods section below.
  • Total: The sum of all month values in the forecast (both actuals and forecast).
  • Remaining following years: Resource bookings that lie beyond the fiscal year.
  • Job end date: The date when the job is expected to be closed.

Pipeline Tab (Bottom Grid)

The Pipeline tab retrieves data from your pipeline activities. It also takes into the account the probability rate of each activity when computing for the total revenue. For example, if an activity in the pipeline has a 25% probability of becoming a revenue-earning job, Workbook multiplies the total revenue by .25.

The Pipeline tab also displays the status and stage for each activity.

Pipeline Tab Columns

  • Company: The company for which the net revenue forecast was created.
  • Pipeline name: The name of the pipeline as defined in the Pipelines submodule of the CRM module.
  • NRF responsible:The employee that receives the notification, if you use the input workflow.
  • Probability: The probability, in percentage, that the activity in the pipeline will become a revenue-generating job.
  • Status: A value from a user-defined list in the CRM setup module in the Settings module. For more information, see Setting Up Pipeline Management.
  • Stage: An auto-generated value based on the progress of the pipeline. For more information, see Setting Up Pipeline Management.
  • Original amount: The total pipeline net revenue amount.
  • Expired amount: A summary of the expected monthly net revenue value before the first forecast month.
  • Future amount: Original amount – Expired amount.
  • Month columns in Actual section: These columns are always empty for pipelines.
  • Month columns in Forecast section: Controlled by the pipeline forecast method.
  • Total: The total revenue forecast for the activity in the pipeline.
  • Remaining following years: Future amount – summary of pipeline values in the forecast months.

Inter-company Tab (Bottom Grid)

The Inter-company tab displays the potential transfer of revenue from one company to another in a database with multiple companies, based on the hours delivered by one company to a job that is owned by another company. If the current company owns a job, this particular job can be present in both the Job and Inter-company tabs. You perform the forecast in total on the Job tab, and you deduct what you need to pay to the other company on the Inter-company tab.

If the current company delivers hours to another company for a job but does not own the job, you will not see that job on the Job tab. You will see it as income on the Inter-company tab.

Inter-company Tab Columns

The columns on the Inter-company tab uses different formulas to generate values for net revenue forecasts.

  • Owner Company: The company that owns the revenue-generating job.
  • Delivery Company: A company in the database that delivers hours to the job but does not own the job.
  • Job: This column displays the jobs owned by the current company (costs) and the jobs to which the current company delivers hours (income).
  • NRF Responsible: The employee that receives the notification, if you use the input workflow.
  • Previous revenue: The total value of postings on operating accounts before the start date of the financial year of the forecast based on the current company’s transactions with another company in the database, either as owner company or delivery company.
  • Revenue YTD: The total value of postings on operating accounts from the start date of the financial year to the first forecast month (the sum of columns in the Actual section) based on the current company’s transactions with another company in the database, either as owner company or delivery company.
  • Month columns in Actual section: The value of finance postings on operating accounts in the months before the first forecast month.
  • Month columns in Forecast section: Controlled by price quote forecast method (see Net Revenue Forecast Methods). If job end date is exceeded remaining, the amount gets inserted into the first forecast month.
  • Total: The sum of all month values in the forecast (Both actuals and forecast).
  • Remaining following years: Resource bookings that lie beyond the fiscal year.
  • Job end date: The date when the job is scheduled to be completed.

Net Revenue Forecast Status

A net revenue forecast can be in any of the following statuses:

  • Yellow: All records are under preparation.
  • Green: All records have been approved.
  • Pink: Some records in the net revenue forecast have a status of Under Preparation while others have a status of either Approved or Locked.
  • Light Blue: If you have just one record for approval.
  • Dark Blue: All records are locked.

Net Revenue Forecast Methods

You must define the price quote and pipeline forecast methods before creating a net revenue forecast as these methods control how WorkBook distributes the Remaining amount. To do this, go to Settings » Finance » Net revenue forecast methods. For more information, see the video tutorial on how to create net revenue forecast methods (https://www.youtube.com/watch?v=vwh-k850hb8).

Changing the forecast methods for price quotes and pipeline activities does not change the values in existing net revenue forecasts. You need to create a new net revenue forecast if you want to have a forecast based on new price quote and pipeline forecast methods.

Price Quote Forecast Methods

There are four forecast methods for the price quote:

  • Even distribution over time: Divides the Remaining amount among the number of months from the forecast start date to the job’s end date. Workbook uses the Remaining following years column to summarize the value of future months that are not included in the forecast.
  • Use billing plan: This is the only method where the Remaining amount is not distributed. This method looks at billing plans for the included price quotes and inserts the values using a 1:1 ratio, summarized by month.
  • Schedule future amounts proportionally: Calculates the forecast value as a proportional percentage of the Remaining amount for each month based on the total of the scheduled values. If there are no scheduled values to calculate the forecast from, WorkBook inserts the remaining value into the first forecast month.

For example:

Remaining amount = 500
Schedule value of forecast month 1 = 50
Schedule value of forecast month 2 = 100
Schedule value of forecast month 3 = 50

Forecast values:

Month 1 = 125 ([500/200]*50)
Month 2 = 250 ([500/200]*100)
Month 3 = 125 ([500/200]*50)

  • EAC distribution method: Calculates a monthly value on the basis of the price quote net revenue, actual, and scheduled monthly value. If there are no scheduled values to calculate forecast from, WorkBook inserts the remaining value into the first forecast month.

For example:

Month 1 = ([Previous Actual + YTD actuals + Scheduled month 1] / [Previous Actual + YTD actuals + Total schedule] * Price quote net revenue) – (Previous actual + YTD Actuals)

Month 2 = ([Previous Actual + YTD actuals + Scheduled month 1 + Scheduled month 2] / [Previous Actual + YTD actuals + Total schedule] * Price quote net revenue) – (Previous actual + YTD Actuals) – Calculated revenue month 1

Month 3 = ([Previous Actual + YTD actuals + Scheduled month 1 + Scheduled month 2 + Scheduled month 3]/ [Previous Actual + YTD actuals + Total schedule] * Price quote net revenue) – (Previous actual + YTD Actuals) – (Calculated revenue month 1 + Calculated revenue month 2).

This pattern continues per month until the last forecast month.

Pipeline Forecast Methods

There are two forecast methods for the pipeline:

  • Even distribution over time: If system variable 962 is not selected in the Settings module, WorkBook evenly distributes the future amount, which is derived from the pipeline start date and number of pipeline months, among the months in the pipeline period. If system variable 962 is selected, WorkBook distributes the future amount evenly among the months in the billing plan period.
  • Use billing plan: Inserts billing plan values using a 1:1 ratio, summarized by month. This setting is only valid when system variable 962 is selected in the Settings module.

Create Net Revenue Forecasts

Use the Net revenue forecast submodule in the Finance & Administration module to create net revenue forecasts.

  1. On the module toolbar, click Finance & Administration .
  2. In the left pane of the Finance & Administration module, click General ledger » Net revenue forecast.
  3. Use the drop-down list above the left pane of the Finance & Administration module to select the company for which you want to create a net revenue forecast.

4.  At the top of the Net revenue forecast grid, click New net revenue forecast .

5.  In the “Create new net revenue forecast” dialog box, enter the following information:

Title: The name of the new revenue forecast.

Method: The revenue forecast method that WorkBook will use.

Job review role: The role that will receive the input notification for the job.

Pipeline review role: The role that will receive the input notification for the pipeline activities.

Per date: Refers to the start date of the forecast and is used as a cut-off date for the value in the Burn column on the Job tab in the bottom grid.

Only actual: This is a supplemental feature that enables you to report the 12-month actual numbers across clients. This is for reporting purposes only.

Months: The number of months covered by the net revenue forecast. The maximum number of months that you can enter is 24.

Companies: WorkBook includes the jobs and pipeline activities owned by the company/companies in this field in the net revenue forecast.

Currency: The currency that will be used in the net revenue forecast.

Copy manual edits from: If you previously edited forecast numbers manually, you can carry these edited values over to the new forecast. This makes the forecast more accurate as the additional months in the new forecast are now based on actuals.

6.  Click OK.

Update Net Revenue Forecast

Use the Net revenue forecast submodule in the Finance & Administration module to update net revenue forecasts. Normally, you run the net revenue forecast after closing a certain month. However, in cases where you performed new transactions after creating the net revenue forecast, such as additional finance postings or time entries, it is advisable to update the forecast to get accurate numbers even if the month is not yet closed.

  1. On the module toolbar, click Finance & Administration .
  2. In the left pane of the Finance & Administration module, click General ledger » Net revenue forecast.
  3. Use the drop-down list above the left pane of the Finance & Administration module to select the company for which you want to update a net revenue forecast.

4.  At the top of the Net revenue forecast grid, select the net revenue forecast that you want to update from the drop-down list. If you want to display all new revenue forecasts for all of the companies in the system, select Include all.

5.  Click Update net revenue forecast  next to the revenue forecast drop-down list.

6.  When WorkBook asks if you want to update the selected new revenue forecast, select any of the following options:

Update and keep manually edited values: This will keep the manually edited values in the forecast.

Update and recalculate everything: This will remove the manually edited values from the forecast.

Workbook loads the new values for the selected net revenue forecast.

Review Actions

WorkBook offers you several options for reviewing, approving, and sending the status of net revenue forecasts. You can change the net revenue forecast status for all clients, approve a net revenue forecast for all clients, send a revenue forecast that includes all clients to the designated approvers for review, or use the flexible review option to include only a specific client or clients in a net revenue forecast.

The reviewers are determined by the selected net revenue forecast method (Settings » Finance » Net revenue forecast methods). You can also change the reviewer per job or pipeline activity in the NRF column in the bottom grid of the Net revenue forecast submodule in the Finance & Administration module.

Flexible Reviews

If you do not want to include all clients in the net revenue forecast review that you want to perform, this option allows you to select one or several clients. You can also use this option to change the net revenue forecast status of individual clients.

  1. On the module toolbar, click Finance & Administration .
  2. In the left pane of the Finance & Administration module, click General ledger » Net revenue forecast.
  3. Use the drop-down list above the left pane of the Finance & Administration module to select the company for which you want to perform a net revenue forecast review.

4.  At the top of the Net revenue forecast grid, select the net revenue forecast that you want to use from the drop-down list. If you want to display all new revenue forecasts for all of the companies in the system, select Include all.

5.  Click Review actions  next to the revenue forecast drop-down list, and click Flexible review from the drop-down menu. WorkBook displays a check box for each client row in the grid.

6.  Select the check boxes for the clients that you want to include in the net revenue forecast.

7.  Click Review actions  again and select an option from the drop-down menu.

Send selected to review: Sends the net revenue forecast for the selected clients to reviewers.

Set selected under preparation: Reverts the status of net revenue forecasts that have already been sent to reviewers to Under Preparation. This is useful when you want to make changes to the values in a net revenue forecast that was already sent for review. For more information, see the Net Revenue Forecast Status section above.

Approve and lock selected: Approves and locks the net revenue forecast for the selected clients. You cannot change the status of a locked net revenue forecast line.

Cancel flexible review: Cancels the flexible review option and hides the check boxes for the clients.

Approve a Net Revenue Forecast for All Clients

You have the option to include all clients when approving a net revenue forecast. This also locks the net revenue forecast from further modifications. You cannot change the status of a locked net revenue forecast.

To approve a net revenue forecast for one or several clients included in the net revenue forecast, see Flexible Reviews.

  1. On the module toolbar, click Finance & Administration .
  2. In the left pane of the Finance & Administration module, click General ledger » Net revenue forecast.
  3. Use the drop-down list above the left pane of the Finance & Administration module to select the company for which you want to approve a net revenue forecast.

4.  At the top of the Net revenue forecast grid, select the net revenue forecast that you want to use from the drop-down list. If you want to display all new revenue forecasts for all of the companies in the system, select Include all.

5.  Click Review actions  next to the revenue forecast drop-down list, and click Approve all and lock entire NRF from the drop-down menu. WorkBook approves the net revenue forecast and locks it from further changes. The new status is displayed at the top-right section of the grid.

Set Status to “Under Preparation” for All Clients

You have the option to set the status of a net revenue forecast to Under Preparation for all clients. This is useful when you want to make changes to the values in a net revenue forecast that was already sent for review. You cannot change the status of a locked net revenue forecast.

To set the status to Under Preparation for one or several clients included in the net revenue forecast, see the Flexible Reviews section above.

  1. On the module toolbar, click Finance & Administration .
  2. In the left pane of the Finance & Administration module, click General ledger » Net revenue forecast.
  3. Use the drop-down list above the left pane of the Finance & Administration module to select the company for which you want to change the net revenue forecast status.

4.  At the top of the Net revenue forecast grid, select the net revenue forecast that you want to use from the drop-down list. If you want to display all new revenue forecasts for all of the companies in the system, select Include all.

5.  Click Review actions  next to the revenue forecast drop-down list, and click Set all under preparation from the drop-down menu.

Send Net Revenue Forecasts to Reviewers for All Clients

You have the option to send a net revenue forecast to its reviewers for all clients. You cannot send a locked net revenue forecast for review.

To send a net revenue forecast to its reviewers for one or several clients, see the Flexible Reviews section above.

  1. On the module toolbar, click Finance & Administration .
  2. In the left pane of the Finance & Administration module, click General ledger » Net revenue forecast.
  3. Use the drop-down list above the left pane of the Finance & Administration module to select the company for which you want to have the net revenue forecast reviewed.

4.  At the top of the Net revenue forecast grid, select the net revenue forecast that you want to use from the drop-down list. If you want to display all new revenue forecasts for all of the companies in the system, select Include all.

5.  Click Review actions  next to the revenue forecast drop-down list, and click Send all to review from the drop-down menu.

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