Accrual Forecast (Rebate Management)
- Jana Volencová (Deactivated)
The Accrual Forecast extension of Rebate Manager Accelerator allows you to create simple and flexible accrual forecast and true-up.
Forecasting is done at the rebate contract level for a customer for the duration of the contract; this forecasts the rebate for that customer and the accrual for the accrual account.
Key points:
Leverages the existing forecasting.
Creates simple seasonality & flat forecasting.
Creates accruals for the agreement duration.
Simple true-up.
Parameterized and easy to extend.
In this section:
Input
Name | Values | Section |
|---|---|---|
Forecast Type | Rebate Forecast | Header |
Accrual Method | Seasonal Naive | Header |
Sales Goal Increase % | A number | Header |
Forecast Interval (= payment period of the particular Line Item) | Monthly | Line Item |
Note: If you select Accrual Forecast as Forecast Type, it displays both output rebate forecast and accrual forecast on the header and line item level.
Calculations
Accrual Forecast
Forecast for particular Line Items in Rebate Agreement is calculated for an interval relevant to the Forecast Interval input (= payment period of the particular Line Item).
Formulas below are shown for the monthly interval case and are dependent on a selected Accrual Method.
Accrual Method | Accrual Forecast Baseline Calculation |
|---|---|
Seasonal Naive Method | This year's accrual forecast for a month: adjust the corresponding month's revenue from last year up/down by the sales goal and use the seasonal naive approach. Formula for particular months of the year: |
Average Method | This year's accrual forecast for a month: adjust last year's total revenue up/down by the sales goal and use the average method for flat accruals forecast. Formula for particular months of the year: |
Notes:
This year = contract validity period (Start Date and End Date or Rebate Agreement)
Last year = contract validity period decreased by one year
For the Start/End Dates which are not set for the beginning/end of a month, the result value is calculated as the percentage of the value for particular month. This percentage is given by the percentage of the number of days within that month.
For example: the calculated value for September is 500, the End Date = 15th of September (which has 30 days), then the percentage is 50%, so the final value is 50% of 500 which is 250.
For the following Rebate Types the formulas inputs is Volume (not Revenue as it is for the other types):
Single Volume Total Amount
Single Volume Total Percent
Single Volume Per Unit
Once the Accrual Forecast baselines are calculated according to the particular Rebate Type, the relevant Rebate calculation is applied with the Accrual Forecast Baseline as its input.
Location
Rebate Agreement – All the particular Accrual Forecasts for all the included periods (monthly, quarterly, semi-annually or annually) are saved in the Rebate Agreement with the Line Item.
Rebate Records – The particular forecast for the particular period is included in the columns of the Rebate Record for the particular period.
True-up
The True-up amount is the Accrual Forecast minus the Current Rebate.
Calculation
True-Up = Accruals Forecast for a given period - Current Rebates for a given period
Example for a quarterly period:
True-Up = Accruals Forecast (M1 + M2 + M3) - Current Rebates (M1 + M2 + M3)
Location
Rebate Agreement – All the particular True-ups for all the included periods (monthly, quarterly, semi-annually or annually) are saved in the Rebate Agreement with the Line Item.
Rebate Record – The particular True-up for particular period is included in the columns of the Rebate Record for the particular period.
Output
All the outputs are presented in the Calculation Results section of the Rebate Agreement at both Header and Line Item level:
Line Item – The data is displayed on the basis of the selected payment period of each Line Item.
Header – The data is always displayed on monthly basis. In case of quarterly, semi-annually or annually intervals, to get the values for particular months the quarterly, semi-annually or annually values are divided by actual amount of months: either 3 (quarterly), 6 (semi-annually) or 12 (annually).
Example:
- Case 1: Start Date = 01/01/2020; End Date = 31/12/2020; Q1 contains M1, M2, M3; Value of Q1 = 3,750
then value of M1 = M2 = M3 = 3,750 / 3 = 1,250
- Case 2: Start Date = 01/02/2020; End Date = 31/12/2020; Q1 contains M2, M3; Value of Q1 = 3,750
then value of M2 = M3 = 3,750 / 2 = 1,875
- Case 3: Start Date = 01/03/2020; End Date = 31/12/2020; this year contains 10 months; Value of this year= 3,750 then value of each months in this year = 3,750 / 10 = 375
Summaries
Rebate Agreement Header
The summaries of the following Line Items outputs are presented in the Calculation Results section in the Header of the Rebate Agreement as a summary of all of these.
Output | Value Type | Notes |
|---|---|---|
Accrual Forecast | Rebate Value |
|
True-up | Rebate Value |
|
Accrual Comparison Chart | Rebate Value |
|
This year’s Sales Forecast Table | Baseline Revenue | Active/visible only when Line Items contain Revenue Rebate Type |
This year’s Sales Forecast Chart | Baseline Revenue | Active/visible only when Line Items contain Revenue Rebate Type |
This year’s Quantity Forecast Table | Baseline Quantity | Active/visible only when Line Items contain Volume Rebate Type |
This year’s Quantity Forecast Chart | Baseline Quantity | Active/visible only when Line Items contain Volume Rebate Type |
Line Item Header
The following outputs for the particular periods are presented in the Calculation Results section in each of the Line Item as a summary of all of these.
Output | Value Type | Notes |
|---|---|---|
Accrual Forecast Baseline Value | Baseline Revenue |
|
Accrual Forecast Quantity | Baseline Quantity | Active/visible only when Line Items contain Volume Rebate Type |
Accrual Forecast | Rebate Value |
|
True-up | Rebate Value |
|
Accrual Comparison Chart | Rebate Value |
|
This year’s Sales Forecast Table | Baseline Revenue | Active/visible only when Line Items contain Revenue Rebate Type |
This year’s Sales Forecast Chart | Baseline Revenue | Active/visible only when Line Items contain Revenue Rebate Type |
This year’s Quantity Forecast Table | Baseline Quantity | Active/visible only when Line Items contain Volume Rebate Type |
This year’s Quantity Forecast Chart | Baseline Quantity | Active/visible only when Line Items contain Volume Rebate Type |
Accrual Comparison Chart
A bar chart displaying Previous Rebate vs. Current Rebate vs. Accrual Forecast.
Previous Rebate – Previous rebate per the previous relevant period (monthly, quarterly, semi-annually or annually) in Rebate Records.
Current Rebate – Current rebate per the current relevant period (monthly, quarterly, semi-annually or annually) in Rebate Records.
Accrual Forecast – Calculated Accrual Forecast in the Rebate Agreement (for the particular Rebate Type).
The data is displayed for the contract validity period (Start Date - End Date in Rebate Agreement).
This Year’s Sales Forecast Table
The table displaying this year’s sales forecast by Payment Period of the particular line item. The example below is Monthly.
This Year’s Sales Forecast Chart
A bar chart displaying this year’s sales forecast by Payment Period of the particular line item. The example below is Monthly.
This Year’s Quantity Forecast Table
A table displaying this year’s quantity forecast by Payment Period of the particular line item. The example below is Monthly.
This Year’s Quantity Forecast Chart
A bar chart displaying this year’s quantity forecast by Payment Period of the particular line item. The example below is Monthly.