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APPENDIX F How a Quarterly Rolling Forecast Can Be Laid Out in a Planning Tool

Here is an example of rolling forecasting with a planning tool, forecasting out six quarters. The first six months are shown with monthly numbers. The tool will have forecast dated for the previous 6 quarters for trend analysis. Forecast six months out as well as a view of the previous six months. Planners can compare different versions of their forecasts. Managing version comparisons in spreadsheets is extremely difficult.

Source: IBM Cognos TM1 www.ibm.com

Example of how the model uses formulas.

In this sales forecast view, tailored within the planning system, planners can focus on major products and product groupings (versus all products), the key customers per each set, and rounded numbers.

In this example, managers are able to focus on business decisions about their staff levels. New hires (who, when and where). Existing staff who are planning to leave can be assigned an end date. The tool will then automatically calculate the total payroll for the department, including taxes based on the underlying assumptions. Managers can complete this type of payroll forecasting very quickly.