Sales Distribution

Sales are distributed according to a distribution factor that is calculated as the adjusted value divided by the original value.

For example, if:

  • Parent original sales: 7000
  • Parent adjusted sales: 8000

Then, the distribution factor is calculated using the following formula:

  • Distribution factor = parent Adjusted Sales / parent Budget Sales
  • = 8000/7000
  • = 1.14285714
  • This factor is then applied to all the child locations.

Suppose that the child-location sales are:

  • Child 1 = 3200
  • Child 2 = 3800

After applying the distribution factor:

  • Child 1 = 3200 * 1.14285714= 3657.14
  • Child 2 = 3800 * 1.14285714 = 4342.86