Forecast Solicitation
Forecasting involves predicting likely business results by tracking a company’s progress-to-budget status. A forecast is generated by extracting actual historical values and applying a forecast method.
Throughout the year (usually monthly or quarterly), the forecast is updated using more current data, such as sales and AHR actuals to date, and certain data, such as payroll percent, from the finalized budget. These forecast updates enable managers to gauge how they are tracking against the budget as the year goes by.
The forecast generation and solicitation process occurs when creating a new forecast or updating an existing forecast.
At every step of the solicitation process, the system:
- Recalculates the forecast data.
- Verifies that the budget data meets the allowable minimum required hours and maximum annual payroll requirements.
- Performs the required aggregation and/or distribution calculations.
- Changes the state of locations. See State-Change Rules.