Revenue forecasting is the process of estimating how much of the project value you are likely to earn, or how much work has been completed in future months. This article will the different calculations CMap can perform to automatically forecast the revenue for each Project based on key Project information (such as timelines or resourcing).
You can use the Revenue Scheduling tool on Live Projects (All Editions) or Potential Projects (PSA Edition only).
1. From your Dashboard, go to the Projects tab. Click Project and select the Project No-Title to go to the Project Details page.
2. Click the Revenue Scheduling tab and you will see a table like this:
3. You will see a list all of the months which you can Forecast revenue for. These are the active cells which can be typed directly into. The cells will probably be blank when you first come into the tool. So now you can either enter values straight into the cells or you can choose to populate the cells using one of the Auto Forecast options.
If you have any closed months, you may see values (or zeros) but these would be un-editable as the month has been closed and the revenue has been recognised.
Option 1: Manual approach
You can add revenue manually on a month-per-month basis by typing directly into the text box. You can enter a percentage (%) here and CMap will automatically convert this for you.
You can bulk update Revenue manually via the Standard Reports. Go to Revenue Scheduling (Live Projects & Potentials).
Option 2: Auto Forecast options
This tool allows you to select how you would like to phase the revenue for this project.
1. On the right-hand side of the Revenue Scheduling page, click the button.
2. Click into the Fees drop-down menu and select from the following Forecasting options:
The Auto Forecast options marked with an asterisk (*) are only available in the CMap Pro and Enterprise plans.
|Auto Forecast options||Description|
|Resourcing (Weighted by Time)*||
This pulls resourcing time information from the project's Resource Schedule and spreads the remaining Revenue using the resources and information to weight the values month-on- month.
|Resourcing (Weighted by Charge Rate)*||
This pulls resourcing information (Time multiplied by Charge Rate) from the project's Resource Schedule and spreads the remaining Revenue using the resourcing information to weight the values month-on-month.
|Resourcing (Weighted by Cost Rate)*||
This pulls resourcing information (Time multiplied by user Cost Rate) from the project's Resource Schedule and spreads the remaining Revenue using this resource information to weight the values month-on-month.
This pulls resource information from the project's Resource Schedule and forecasts the future months using the value of resourcing entered.
|The total number of hours/days per Role.|
The total number of fees per Role and their amalgamated Total.
The amalgamated value of Adjustments.
3. Now you need to select the Auto Forecast option for the Additionals. Click into the Additionals drop-down menu and select from the following Forecasting options:
|Auto Forecast options||Description|
This will take your project's Budget and apply a flat spread of remaining Revenue to the end date of the project.
This uses the project stage start and end dates and their values to spread the Revenue based on which months the stages fall into.
|Invoiced||The value which will be forecast each month will be based on the values of scheduled invoices in the month.|
|Ignore||This will ignore the Additionals as part of Revenue Forecasting for this project.|
4. When you have set your Auto Forecast options, click OK to forecast Revenue according to your selection.
The forecast option you select will be remembered and CMap will use this forecast option until you choose to update it again in the future.
Should you need to edit the Revenue Schedule, you can directly type into the text box to manually edit the Revenue for future months. However, you cannot edit Revenue for months that have been closed in CMap, as the Revenue has been already been recognised.
Hey presto! Hopefully you now understand what the Revenue Scheduling tool is used for and how you can select from the Auto Forecast options or update Revenue manually. The Revenue Scheduling tool also gives you the ability to recognise revenue.