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Forecasting KBIs

Forecasting KBIs

Owned by Julie Leake (Unlicensed)

With Forecasting, you can predict your profit/loss based on estimated revenue and expenses for the year. This forecast data can also be used to create a flex budget which compares your forecast to actual revenue/expenses. The flex budget shows you where you are over- or under-budgeted, and you can adjust your forecast budget accordingly.

Methods of Forecasting KBIs

Budgeting uses KBI's (key business indicators) to calculate dependant items such as labor. Primary KBIs must be forecast in order for Budgeting to calculate the relationships between the budget line items. KBI data is input, imported or calculated. After you have entered all your data you will need to re-calculate the budget.

Generally, there are two methods of forecasting in Budgeting:

Method 1: Uses the Annual, Quarters or Periods tabs to enter data. Data distribution takes place via configured KBI distribution tables which distribute forecasts using algorithms, or straight line distribution which is implemented by directly entering KBIs.
Method 2: Uses the Daily Tab, in conjunction with the Rate and Adjustment Wizards,  to enter a value for each day of the year.
The forecasting tabs represent the levels of data entry ranging from general entries (Annual) to detailed entries (Daily). As a general rule, initial data entry is done at the Annual or Quarterly level; revisions are entered at the Period or Daily level. Units and rates are always stored in a daily format, however, Budgeting offers the option of entering the data at different levels based on what is most convenient for your situation.

Filter how you want the data to be displayed. You can filter the data to view a broad section of data or a smaller section, by market segment, revenue centers or other.

Entering data at a higher level (annually or quarterly) after entering data at a lower level (periods or daily), means that changes made at lower levels are lost. For example, if you edit data at the Quarterly, Period, or Daily level, and later make edits at the Annual level, the edits you made at the lower levels will be lost.

Fields on the KBI Projections screen

FieldDescriptionNotes

Save

Saves changes to the screen.

Refresh

Refreshes the screen.

Related Tasks

Contains other menu items including:

  • Import KBIs—Import KBIs from external sources.
  • View Calculated KBIs—View the results of the calculations. This screen is view only.
  • Re-Calculate Budget—Performs the calculations required to update the budget. After you have entered all your data (in the Annual, Quarters, Periods and/or Daily tabs) you will need to re-calculate the budget.
  • Value Wizard—(from Daily tab only) Quickly enter values for Units and/or Rates by day of the week for a specific Period or All periods, for a specific Market Segment, Revenue Center Period, Other KBIs or All kbis.
  • Adjustment Wizard—(from Daily tab only) Adjust the daily Rates and/or the daily number of Units, by a specific amount or percentage, by day of the week for a specific Period or All periods, for a specific Market Segment, Revenue Center Period, Other KBIs or All KBIs.

If the Daily tab is selected, the menu will also contain menu items for Value Wizard and Adjustment Wizard.


Display

Select whether Market Segments, Revenue Centers or Other KBIs are displayed. Once selected, other context sensitive filter options are displayed.

  • Market Segments—Filters by Market Group and by Type of segment as well as select whether to Show only Units, Rates or Revenue, or have all three displayed.
  • Revenue Centers—Selects which Revenue Center you want to view as well as whether to Show only Units, Rates or Revenue, or have all three displayed.
  • Other KBIs—Views KBIs that are neither market segments nor revenue centers. You select whether you want to Show only Units, Rates or Revenue, or have all three displayed.

Show

Select whether you want to view units, rates, or revenue totals.

  • Units—Edit the number of units on an annual, quarter, period, or daily basis. This data is the basis for calculations involving the KBI, including labor standards, and is used for both revenue and expenses.
  • Rates—Edit the rates on an annual, quarter, period, or daily basis. This data is used as the basis for calculations involving the KBI, including labor standards, and is used for revenue line items.
  • Revenue—View the revenue totals obtained by multiplying units by rates.

Market groupSelect the market group for which you want to enter data.
TypeSelect the type of KBI for which you want to enter data.

Splitter Bar

Re-size the table. Once the table has been re-sized you can use the column separators to re-size individual columns.


Tabs

Annual

Enter data on an annual basis. The data is then distributed throughout the year based on the KBI distribution tables (if configured), or straight-lined. This tab also denotes the annual total if the KBI was forecasted on a daily or periodic basis.


Quarter    

Enter data on a quarterly basis. Data is then distributed throughout the quarter based on the KBI distribution tables (if configured), or straight-lined.

If you chose 13 Periods as your financial year type, when the system was configured, this tab will not be available.

Period

Enter data by period. Data is then distributed across the days of the period based on the KBI distribution tables (if configured), or straight-lined (if distribution tables are not configured).


Daily

Enter data for a selected KBI on any given day, for the selected period.



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