The Forecast Model supports leadership conversations in identifying and setting Market Center budget goals for the coming year. While one person, such as the MCA, may be responsible for entering the information, the Forecast Model is a tool for the entire leadership team.
Once you have completed the worksheet, submit the goals to your Region per their guidelines. Once the Region has approved your goals, you will enter your budgets into Accountedge/Lonewolf during the year end process.
Setting Your Budget
As you complete this worksheet, you may copy and paste values from one cell to another.
Warning: Do not drag a value from one cell to another. This action will corrupt formulas. You can copy and paste a value to another cell, just don’t click and drag a value.
Step 1: Info Tab
Enter your Market Center Name and Number, then select the accounting package that you use for your market center (AccountEdge or Lonewolf). This selection will set the account number format displayed on the budget tab.
Step 2: Production Metrics
Using your Multi-Year Trends Report, enter the required information. For 2018 and 2019 enter the number from the total column for that metric. For 2020, using the YOY percentage, project where you expect to end 2020 (2019 Total increased/decreased based on YOY percentage for 2020). Then enter your 2021 Goal.
Add the current year, as well as the past two years from your Multi-Year Trends Report. Export your Trend report to an Excel workbook, and then copy and paste values into the fields highlighted in yellow on the Forecast Model.
- Average Price:
Using your Multi-Year Trends Report, use the numbers in the total column for the given year and divide your volume by the units to determine average price. Enter the calculated average in the designated cell.
This number is calculated based on units x average price.
- Financial Metrics:
Using your Multi-Year Trends Report, enter the requested percentages. GCI, Royalty and Company Dollar all have specific percentages calculated for you on the Multi-Year Trends Report report. For Profit Share as a % of GCI, divide your total profit share for the year by the total GCI for the year.
- Financial Goals:
These numbers are calculated based on your entries above. If you need to adjust your 2021 projected amount, you will need to change your estimated units, average price, or one of the financial metrics to affect your 2021 Projected Financial Goals.
Step 3: Upcoming Year Budget
- For 2019 enter the values based on your final 2019 Income Statement.
- For 2020, use your most recent transmitted income statement plus the budgeted amounts for the months remaining.
- Enter your 2021 budget amount for each account below.
NOTE: For any line item with an increate in the budget the percentage change field will be red, decreases in budget less than 10% will be yellow, and decreases greater than 10% will be green. (Income accounts are the reverse, 10% increases in income will be Green, etc)