When a company's sales are seasonal, you can create a seasonality profile.
Seasonality profile can be used with some of PlanGuru's projection methods to allocate annual amounts among the interim periods.
The default percentage entries for seasonality profile are to divide the year into equal percentages.
Enter the percentage you wish to assign to each period to enable your projection to more closely reflect your actual seasonal activity.
The total of all percentages must equal 100%.
Seasonality information is specific to an analysis.
Seasonality factors can be applied to the following projection methods.
1. Entered by user – When the “Entered by user” method is selected and the “Enter an annual amount and allocate among periods” assumption is chosen, you have the option of using the seasonality profile to allocate your annual amount. Using this method you have to enter the annual amount into the Add/Change category tool and let PlanGuru distribute that amount among the interim periods.
2. Trend based on historical – The trend based on historical method runs a linear regression and projects an annual amount based on historical data. By selecting the “Using seasonality factors designed during setup” option will distribute the yearly calculated amount in accordance with your seasonality profile.
3. Adjust prior period amount – When using the “Adjust prior period amount you can apply a “growth rate” to a prior period amount to forecast your line item. By selecting the “Adjust prior year amount by annual % and allocate using seasonality factors” you can apply a yearly growth rate and use the seasonality factors to distribute the calculated amount among interim periods.
For additional questions please consult the internal help within PlanGuru or log a ticket with the help desk.