Producing Sales Forecast Using Dataset

This document explains how to produce, monitor and implement a sales forecast in M3 using datasets. Forecasting using datasets gives you greater freedom to choose the dimensions in which to forecast than in the Forecasting (FOR) component group, where forecasts can be made only for fixed combinations of item/warehouse.

Outcome

Using this process results in a sales forecast that has been reviewed and transferred to the material plan.

When a sales forecast is created, the unique dataset file is updated. If the sales forecast is transferred to item forecasts in the Forecasting component group, the forecasting file (MITAFO) is updated. If it is transferred to a master demand schedule (MDS) version, the MITMDS file is updated.

Sales forecasts are used to estimate the demand for a specific period. Sales forecasts are created using datasets and can be used, for example, in collaborative demand planning using M3 Demand Planner.

Before you start

  • Sales forecasting must have been enabled.
  • A dataset with transaction type 34=Sales forecast and adequate key and accumulator fields must be available.
  • A forecast method must be connected to the dataset.
  • Historical demand statistics must be available.
  • If you want to use advanced forecasting, the Demand accumulator field (UCDEMA) must be connected to the dataset. You will then automatically get a number of forecasting accumulators, such as MFMADV (mean absolute deviation), MFAVER (mean error), etc.

Follow These Steps

  1. Generate/Create Dataset Forecast

    A dataset forecast can either be calculated or created manually.

    • Calculating Forecast

      You generate a forecast using 'Sales Forecast. Generate in Dataset' (OSS440). Forecast values are calculated per period and saved for the dataset.

      The result of the calculation updates the 'Calculated forecast' dataset accumulator field (MFCFOR).

    • Creating Forecast Manually

      Use sales budget functionality to create a sales forecast manually, for example, if the historical demand statistics provide an insufficient basis for forecasting. By using 'Sales Stats/Budget. Display' (OSS415), you can update the 'Manual forecast' accumulator field (MFMFOR) for transaction type 34=Sales forecast. In 'Sales Budget. Enter Values' (OSS421), you can manually enter the budget values per item.

  2. Monitoring and Adjusting Forecast

    The forecast can be monitored and further adjusted in 'Sales Stats/Budget. Display' (OSS415) and 'Sales Budget. Enter Values' (OSS421).

  3. Transferring Forecast

    The sales forecast is transferred to the Forecasting (FOR) component group in 'Manual Forecast. Update fr Sales Budget' (FCS425). This enables you to trigger the material plan, which you cannot do directly from the Sales Statistics (SST) component group. The transfer may only be done from SST to FOR, not in the opposite direction.

  4. Implementing Forecast in Material Plan

    The MRP/DRP generates planned orders responding to the demands in the forecast. In 'Material Plan. Open' (MMS080) you can display and monitor these planned orders. Forecasting is coded as order category 010.

    When the material plan is opened, forecast transactions are calculated online in 'Calculate Forecast Consumption' (RPS950). The period frames and the forecast logic control how the forecast is implemented in the material plan.

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