Forecasting is an essential component of CAPEX Management in Capexplan, allowing organizations to plan and track capital and operational expenditures. This article outlines the procedures for forecasting budgeted and non-budgeted items, creating forecasted items, and the methods for calculating forecasts.
1. Forecasting for Budgeted Items
Creating a Request
- When creating a request, indicate “Yes” to the question if the item is budgeted and select the corresponding item to establish the link.
- Forecasts are automatically set to either the monthly budgeted amounts or zero, depending on the account settings.
Post-Approval Forecasting
- Once a request is approved, users can edit the monthly forecast on the Tracking Page. This data is then transferred to the Manage Budget page.
- Managers can override the monthly forecast directly on the Manage Budget page.
Forecast Adjustments
- For the current and previous months, users can toggle between actuals and forecasts using the blue links.
- Past forecasts can be reviewed with the Passed Quarters view.
Reporting
- Forecast reports can be generated using the Report Generator.
- Forecasts are also visible on the Dashboard and can be exported via the Help/Export Capex submenu.
2. Forecasting for Non-Budgeted Items
Creating a Request
- Indicate “No” to the question if the item is budgeted. The monthly forecast will be displayed as zero for each month.
- Similar to budgeted items, users can edit the forecast on the Tracking Page after approval, with the data flowing to the Manage Budget page.
Forecast Adjustments
- For the current and previous months, users can choose between actuals and forecasts with the blue links.
- The Passed Quarters view is available for multi-year projects with historical data.
3. Creating Forecasted Items
Defining Forecasted Items
- Forecasted items are those not budgeted but anticipated for future capex/opex requests.
- When creating a new request, select “No” to the budgeted question and “Yes” to the forecasted question to access the list of forecasted items for the business unit.
Entering Monthly Forecasts
- Monthly forecasts can be entered similarly to normal capex requests, whether they are budgeted or non-budgeted.
4. Forecasting at the Tracking Level
Editing Forecasts
- Forecasts can be manually edited monthly on the Tracking Page. Other forecasts are system-generated.
- Changes made in the Manage Budget page will be reflected back in the Tracking Page.
Original Forecast
- Once the first fiscal month is complete, the Original Forecast is locked and used for reference throughout the year.
5. Calculating Forecasts
Total Forecast (Year to Date – YTD)
- Option 1: Forecasts are incremental, starting from the fiscal year’s first month (most popular).
- Option 2: Forecasts show the anticipated total at the end of the year.
Forecast LTD (Life to Date)
- Similar to the total forecast but accumulates without resetting annually.
6. Calculating Forecasts with Actuals
Forecast and Actuals Integration
- Actual amounts replace forecasted amounts each new month.
- For example, by May, the total forecast comprises five months of actuals and seven months of forecasts. In October, it includes ten months of actuals and two months of forecasts.
Year-End Calculations
- At the fiscal year’s end, the Total Forecast equals the total actuals, as the forecast comprises twelve months of actuals.
- For multi-year projects, Forecast LTD continues to increment, reflecting the forecasted amount up to the current date.
7. Remaining Forecast
Available to Forecast Calculation
- The Available to Forecast is calculated as the Approved amount minus the amount forecasted in the Forecast (monthly) column.
- For example, if a capex was approved with a disbursement timeline, the Available to Forecast amount adjusts according to the disbursements and forecasted amounts.
