Calculate projected forecast, variance % and shortage
You can calculate the Projected Forecast, Variance % and Shortage field values of the items using the following steps:
The daily forecast should be calculated for an item.
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Select the Search icon
, enter Daily Forecast, and then choose the related link.
The Daily Forecast page opens. -
On the Options FastTab, perform the following steps:
- In the Forecast Date field, select a date. This field is filled with the work date by default.
- In the Forecast Day field, you can view the day corresponding to the value selected in the Forecast Date field.
- In the Location Code field, select a code from the list.
- In the Item No. field, select an item from the list.
- Turn on the Show Shortage toggle to filter and view the daily forecast lines that have a shortage quantity greater than zero.
The Projected Forecast, Variance %, and Shortage field values are calculated automatically once the Daily Forecast page opens.
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On the action bar, select Forecast, and then select Calculate Projected Forecast if you want to calculate the projected forecast manually by modifying the filters.
- The Projected Forecast field value is calculated for each daily forecast entry. The total value of all the daily forecast entries is displayed on the Daily Forecast page. To know more, see Calculation based on forecast method.
- The Variance % field value is calculated after the projected forecast is calculated for the daily forecast based on the below formula:
- Variance % = Projected Forecast / Forecast x 100
- The Shortage field value is calculated after the variance % is calculated for the daily forecast based on the below formula:
- Shortage = Projected Forecast – Inventory - Qty. on Production.
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Select the Forecast field to view the Daily Forecast Entries page.
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Change the Forecast field value on the Daily Forecast Entries page.
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Close the Daily Forecast Entry page.
The Projected Forecast field value on the Daily Forecast page is updated automatically.
Calculation based on forecast method
The projected forecast is calculated based on the type selected in the Forecast Method Type field on the Daily Forecast Codes page. The available options are Highest Value and Sales Value. The Highest Value option is set as default.
Highest value means that the projected forecast is calculated using the higher value between the forecast quantity and the sales order quantity for each daily forecast entry, based on the applied filter settings.
Sales value means the projected forecast is calculated using the forecast quantity if the sum of the sales order quantity and shipped quantity in the associated daily forecast entry is zero. If the sum is not zero, the sales order quantity is used to calculate the projected forecast for that entry.