Have you ever found it hard to keep your financial forecasts current in a constantly changing business environment?
A rolling forecast in SAP can help you stay accurate and respond to new changes quickly. It lets companies update their financial outlook regularly by predicting the next few months instead of following old yearly plans.
Setting up rolling forecast layouts in SAP gives businesses the flexibility to adjust their forecasts when market conditions or performance change.
In this blog, we will explore how to create these flexible layouts in SAP and why they are important for today’s financial management.
Understanding Rolling Forecasts in SAP
Before configuring, it’s important to know what a rolling forecast is and why it’s important for businesses. A rolling forecast is a financial planning tool that lets organizations update their forecasts regularly, such as monthly or quarterly.
Unlike traditional budgeting, which happens once a year, a rolling forecast adjusts continuously based on actual performance and changing conditions. This method offers more flexibility, allowing businesses to respond quickly to market changes.
In SAP, rolling forecasts are usually set up in the SAP Business Planning and Consolidation (BPC) or SAP Integrated Business Planning (IBP) system. These systems provide the tools needed to manage the forecasting process and connect it with your financial data.
Why Configure Rolling Forecast Layouts in SAP?
A rolling forecast helps your organization adjust to changing market conditions, making long-term planning more dependable. By updating your forecasts regularly, you can increase accuracy and use resources more efficiently.
- Flexibility: A rolling forecast adjusts to market changes, making long-term planning more accurate.
- Accuracy: Regular updates make forecasts more accurate, helping to use resources effectively.
- Alignment with Strategy: Rolling forecasts help keep financial plans in line with the organization’s current goals and strategies.
With this understanding, let’s move into how to configure rolling forecast layouts in SAP.
How to Configure a Rolling Forecast Layout in SAP
To configure a rolling forecast layout in SAP Analytics Cloud, you need to use the “Forecast Layout” table type. This layout type automatically generates time members based on the system date and offers a flexible way to compare actuals with forecast data.
Here’s a step-by-step guide on how to configure a rolling forecast layout:
1. Choose the Forecast Layout Table Type
Start by selecting the Forecast Layout as the type of cross-tab for your table. Once you select this option, the Forecast Layout dialog box will appear with several configurable sections.
2. Configure the Layout Section
The first section in the dialog box allows you to set up the core details of your forecast layout:
– Look Back On
This refers to the version for the historical data you wish to display (usually the “Actuals”). You can also add an input control to allow users to choose the version of data they want to look back on.
– Look Ahead On
This is the version for forecasting or projecting future periods. Similar to the “Look Back,” you can create an input control for users to select the version for the forecast.
– Cut-over Date
This is the date that separates the past (Look Back) and future (Look Ahead). You have three options for defining this date:
- Today: The default choice, which uses the current date.
- Specific Date: Select a specific date from the calendar.
- Last Booked (Actuals): The latest date that actual data was entered into the system.
4. Define the Timeframe Section
In this section, you define how the forecast periods will be structured, including the granularity (such as quarters or months) and the look-back/look-ahead periods:
1. When Type is Forecast
- Granularity: Choose the granularity of the forecast period (e.g., Month or Quarter).
- Range: Select whether you want to display forecast data for the next year or quarter.
- Look Back Additional: Define how many periods (e.g., months, quarters, years) you want to include as historical data for comparison.
- Look Ahead Additional: Set how many future periods you want to forecast and their granularity (e.g., months, quarters, years).
2. When Type is Rolling Forecast
- Look Back: Define the number of historical periods (and their granularity) to display.
- Look Ahead: Specify how many periods you want to forecast ahead.
3. Calculation
This option defines how SAP should handle the data. You can choose to sum the data for different periods (Cut-over Year, Look ahead periods, etc.), or leave it as none if no summation is needed.
4. Additional Versions
This feature allows you to compare your forecast layout with other versions of data, like Actuals vs. Forecast. SAP automatically displays a Delta column, which shows the difference between the forecasted data and the selected version, helping you track any discrepancies or variations.
Conclusion
Setting up rolling forecast layouts in SAP might look complicated, but once you do it, it becomes a valuable tool for businesses. It helps them make better predictions and react quickly to market changes.
With proper setup, companies can keep their forecasts relevant and current, which helps prevent financial surprises. SAP is flexible, allowing you to customize these layouts for budgeting, long-term planning, or strategic decisions.
At Vizio Consulting, we help businesses get the best out of their SAP systems. Our team ensures smooth integration and better performance. We guide you in setting up your rolling forecast layouts, so your business can plan confidently for the future.