Setting up Forecast Configuration and Creating Forecasts
Setting up Forecast configuration
- If the forecast configuration is edited, the current and future forecasts that are based on the old configuration will be deleted. Completed forecasts will be archived.
- Changing the fiscal year of the organization will delete all the existing forecasts as well as the archived forecasts.
- The forecast configuration applies to all the forecasts across Teamspaces.
- Forecast model: By default, the top-down model is selected. You can switch to the bottom-up model if that suits your organization. Read more about When to use which model? (cross link)
- Hierarchy based on which the forecast will be created: By default, role and territory hierarchies will be displayed. If reporting hierarchy is enabled, role hierarchy will be replaced with reporting.
- Forecast based on deal revenue or deal quantity: It is recommended to select both options to create amount and unit-based forecasts as it allows to create forecasts for either of these metrics. A system-defined field (count of deals), all standard and custom currency fields, and number fields will be available.
- Fiscal year and its display: The Fiscal year as set under the Company details will be displayed here. It can be edited if needed from Manage the fiscal year settings at Setup > General > Company Settings > Fiscal Year.
- Log in to your CRM account as an Administrator.
- Go to the Forecasts module.
- In the Forecast homepage, click Configure Forecast.
- If you have already created Forecast Configuration, click the More button (...) and select Edit forecast configuration to make changes.
- In the Create/Edit Forecast Configuration page, do the following:
- Choose the forecast model: Top down or Bottom up.
- Choose the Hierarchy: Role/Reporting or Territory.
- To choose the forecast type:
- Select Deal Revenue and choose a currency field from the drop-down.
- Select Deal Quantity and choose a number field from the drop-down.
Creating forecasts
- A forecast manager can create forecasts and set targets.
- In the reporting and territory hierarchy, the respective managers (reporting manager/ territory manager) are automatically considered as the forecast managers.
- In role hierarchy, a forecast manager can be manually assigned by CRM users who have the permission to manage roles in their profile. In role hierarchy, there can only be one forecast manager for a particular role. For example, a user from the regional sales manager role, a user from the strategic account executive role, and a user from the sales executive role can be forecast managers.
- In a forecast hierarchy, there can be multiple forecast managers. This allows them to create forecasts for their team and approve targets set by the team members in case of a bottom-down model.
- Log in to the CRM account as an administrator.
- Navigate to Setup > Security Control > Roles and Sharing > Roles.
- Hover over a role and click Add manager.
In the Add Manager popup, select a User and click Save.
For assigning reporting managers (reporting hierarchy), see: Reporting hierarchy.
- For learn more about territory hierarchy and territory managers, see: Using Territories.
- Edit a role or hover on the Manager icon.
- In the Edit role page, under Forecast Manager, select a User.
- Click Change.
Forecast type
Forecast period
Forecast for all or selected deals
Set target
- If it is top-down, a target is set for the organization, and then its drilled-down into smaller targets for other entities (roles, territories, reporting managers) in the hierarchy. Finally, targets are assigned for individual users. This is an approach where the targets are set and driven from the top to the bottom of the hierarchy. Most users will not be involved in setting the target.
If the split-up doesn't match with the total target, then a warning icon will be displayed showing the incorrect amount. You can adjust the values to meet the total target amount or continue to save the forecast despite the mismatch. If it is bottom-up, targets are set for different users, and these will get summed up as the organization's target. For example, if you've assigned and approved targets for every user in a role hierarchy, the individual targets will get rolled up into targets for roles. In turn, the roles' targets will be summed up as the organization's target.
- Only one role can be assigned to a user, so a user can only have one target, as per the forecast.
- If you want to assign the same target value to the users in that role, you can click on Apply this target to all peers option. This option will appear ONLY while entering the target value for the first user in a role and if the model is top-down.
- If a user belongs to multiple territories, they can be assigned different targets in each territory. Therefore, one user can have more than one target from different territories.
- Let's say a territory (Europe) has sub territories (North and South). The territory manager for Europe will be able to set targets for the North and South sub territories as well.
- If a territory does not have a manager, a manager from any of the superior territories can set targets for the users in various sub territories.
- Target cannot be set for non-territory users.
- If you want to assign the same target to all the users, then you can apply this target to all peers by clicking the option that appears ONLY while entering the value in the first row.
- Though it is not mandatory to set a target for the non-reporting users, it is a best practice to assign every individual a target for meaningful forecasting.
- If a user or role is deleted from the organization: For the forecast period that is completed, the user will be retained but tagged as deleted.
- The users or role names will be deleted for the current and future forecasts.
To create a forecast
- Navigate to the Forecasts module and click Create Forecast.
- In the Create New Forecast page, do the following.
- Forecast Type: Select Revenue based or Quantity based forecast.
- The forecast type will be based on the configuration that is set in the forecast configuration by the admin.
- Forecast Period: Select Quarterly or Monthly and choose the current, future, or completed quarter or month. In case custom fiscal year is chosen, your options will be Quarterly and Periodly.
- Forecast Name: Enter the forecast name. (e.g. High value deals)
- The forecast name will be followed with quarter and year/month (e.g. High value deals Q4 2024 or High value deals Jan 2024)
- Forecast on: Select All Deals or Selected Deals.
- Define criteria for selected deals.
You will be redirected to the target setting page.
To set a target
If top-down model is chosen
In the Set Target page, enter the value for the Company Target.
The same target value will be populated for the highest role or parent territory. (eg., CEO/Zylker as parent territory).Split the target value among:
Depending on the type of hierarchy set in your org.Role, users in a role, sub-roles, and users in sub-roles OR
Reporting manager and subordinates OR
Territories, users in a territory, sub-territories, and users in sub-territories.
Click Apply this target to all the peers to assign the same target to subsequent users.
This applies only while entering the target for the first user under a role or territoryClick Save.
If the bottom-up model is chosen
In the bottom-up model, the users at each role can set targets for themselves and send them for approval to their reporting managers or anyone at the higher role or hierarchy. Once the forecast is created, users can be notified via email to set the targets.
To notify users to set targets
In the Set Target page, go to the respective role and for the respective user click Notify to set target.
The user will receive an email notification to submit their target.In case you (admin/forecast manager/user in highest role or position) want to set the target for a user, you can do so. In this case, the target will be considered approved by default.
Click Save.
To notify users to set a target after the forecast is created
Navigate to the Forecasts module and select a desired forecast.
Hover on the period and click View Full Hierarchy.
In the page that opens, go to the Target Achievement Report section.
For the users in the hierarchy, you'll be able to:
Notify a user to submit their target
View when a user was last notified
Submitting and approving targets
- Navigate to the Forecasts module.
- In the Waiting for your Target Submission section, click Submit your target against the forecast.
- In the Submit Your Target popup that appears, enter the target and click Submit for Approval.
- In the Forecasts module, hover on the period of the desired forecast and click Submit your target.
- In the Forecasts module, click the desired forecast. In the detailed report page, hover over the desired period, and click Submit your target.
This option is available once you've submitted your target. - Hover on the period of a desired forecast and click View Full Hierarchy. Go to your card and click the edit icon. In the popup that appears, set your target and click Submit for Approval.
Approve or reject submitted targets
- Navigate to the Forecasts module and select a desired forecast.
- Hover on the period and click View Full Hierarchy.
- In the page that opens, go to the Target Achievement Report section.
- Go to a user's card and click Approve or Reject.
Bulk approve or reject submitted targets
- Navigate to the Forecasts module and select a desired forecast.
- Hover on the period and click View Full Hierarchy.
- In the page that opens, go to the Target Achievement Report section.
- Click Awaiting Target Approvals.
Locking and unlocking target submission
Admins can lock Target Submission to prevent others from submitting, approving, or rejecting targets. Once locked, only the admin can make changes to the targets.
Navigate to the Forecasts module and select a desired forecast.
Hover on the period and click View Full Hierarchy.
In the page that opens, go to the Target Achievement Report section.
Click Lock Target Submission.
In the Lock Target Submission popup that appears, click Yes, Proceed.
Unlock Target Submission
Admins can unlock target submissions as well.
Navigate to the Forecasts module and select a desired forecast.
Hover on the period and click View Full Hierarchy.
In the page that opens, go to the Target Achievement Report section.
Click Unlock.
In the Unlock Target Submission popup that appears, click Yes, Proceed.
Setting forecast category
After the forecast is configured, the forecast category will be automatically populated based on the configuration done in the stage probability mapping. The forecast category will be auto-populated as per the deal stage. If the deal is in an open stage, the category can be edited depending on the progress.
In stage probability mapping, the deal category determines the current state of a deal. There are three deal categories:
Open - The deal is in pipeline.
Closed won - The deal is won and closed.
Closed lost - The deal is lost and closed.
To determine whether deals from a particular state should be considered for forecasts or not, and, if yes, under which category, we define the forecast category. There are five system-defined forecast categories:
Pipeline - The deals are open and still in the sales cycle.
Best case - The deals that have good chances of winning if everything goes well.
Committed - These deals are committed and are highly likely to be won within the forecast period.
Closed - Deals that are won.
Omitted - These deals won't be included in forecasts.
Once the deals move to the closed (won or lost) stages, the forecast category is locked.
Similarly, the deals that are in closed won or lost state are automatically mapped to closed or omitted state respectively. Users cannot edit the forecast category of deals that are closed.
- When the forecast category of a deal stage is modified, it will be applied to all deals automatically, including both existing and current ones.
- System-defined forecast categories (Pipeline, Best case, Committed) can only be renamed and cannot be deleted.
- In case of deleting a forecast category and mapping existing records for the category to a new option, only records with a closing date after the current date will be updated with the changed forecast category.
Excluding users from forecasts
Irrespective of the type of hierarchy you have chosen: Role-based, reporting-based, or territory-based, your forecast replicates the hierarchy you have created in your organization.
By default, it includes all active users to participate in sales forecasting. However, in reality, not all users might take part in sales or forecasting, and you can exclude the roles or users that are non-participants.
In role-based hierarchy, you can exclude users within each role or exclude the role as a whole.
For example, you can exclude just the user Helen D'Souza or exclude the role sales intern as a whole.
Reporting hierarchy: Exclusion happens individually for each user.
At any point, you would like to add the excluded users back to the forecasting activity, all you have to do is to include them.
Note:
- For role-based and territory-based hierarchies, a user assigned as a forecast manager cannot be excluded. If you'd still like to exclude a forecast manager, you can do so by either removing them from being a forecast manager or entirely excluding the role/ territory they belong to.
- Excluding a senior role will not exclude their subordinates. Exclusion will only apply to them and their subordinates' performance will be attributed to the user or role higher-up in the ladder.
- If you have not excluded a role, a territory, or a user group but also not have allocated targets in the forecasting, the report will show no data related to their achievements.
- An excluded user cannot view the forecast reports.
- This customization applies to the current and upcoming forecasts. Forecasts that are completed will not have this ability to customize.
To exclude users from the forecast
Go to the Forecast module from the list of standard modules in your Zoho CRM.
Click on the Ellipsis button (...) from the top-right corner of the page and select Forecast Hierarchy.
Based on the hierarchy preference in your forecast configuration (Role-/ reporting-based or territory), your forecast hierarchy page will mimic your organization's hierarchy settings.
To exclude a role or a territory altogether, click on the exclude this role/ exlude this territory button.
If you'd like to exclude only a certain users from a role or territory, click on the role/ territory and unselect the users and click Save to exclude those users.
To exclude a user in a reporting-based hierarchy, click on the button Manage Users displayed near the manager's name and unselect the subordinates (users) you want to exclude and click Save.
To exclude users that do not report to anyone in the hierarchy,
You can exclude altogether by clicking on Manage Users button displayed near the root "Non-reporting members" in the hierarchy, unselect the users, and click Save.
If the non-reporting members have subordinates, then exclusion happens from the reporting user's root.
To include users, Click on Include users to include them individually. Or,
Click on Manage users button near an excluded role, territory, or a user group.
Click on All users dropdown available besides the search bar and select Excluded users.
From the list of excluded users, you can check the box near users you want to include and click Save to include them back.
Creating a Continuous Forecast
A new forecast can be created from the existing one to setup continuous forecasts. For example, if you create a Deal revenue forecast for the upcoming quarter based on the previous forecast, you can use a continuous forecast. It allows you to set targets based on achievements and gaps observed in the previous forecast.
An important benefit of continuous forecasting is that you can use Zia's target achievement prediction to compute the ideal target a user can accomplish. Zia predicts the target based on the previous forecasts' achievement. Let's say that in Q2, your team members closed more deals than their target, and as a result, the company observed an increase in deal revenue.
Zia will use the above data to calculate the target that each one can achieve and help you set the predicted target for the upcoming quarter.
When you create a continuous forecast, you can set targets manually or by using the following options:
Zia suggested target: Target calculated by Zia based on the previous forecast will be auto-populated. The targets will be marked as Predicted Target.
Existing forecast target: Targets that were set in the previous forecast will be auto-populated. The user can select which forecast period they want to use.
Existing forecast achievement: The target achieved in the previous forecast will be auto-populated. For example, if a user's target was 10,000 but they achieved 12,000; then 12,000 will be set as the target in the continuous forecast. Again, the user can select which forecast period they want to use.
- A continuous forecast will take over the name of the previous forecast to help admins identify the source. For example, if the previous forecast was Deal revenue, the same name will be used in the continuous forecast followed with quarter/month and year (Deal revenue Q4 2024).
- If the previous forecast was created for selected deals, then the continuous forecast will also be created for the same set of deals. You cannot change the condition provided for the new forecast.
- You can click on the company target, role's or territory's target to view the open deals and their split among: pipeline, best case, and committed. You can also see the predicted target.
A continuous forecast can be created in two ways:
By creating a forecast from an existing forecast
By creating a forecast for next period
To create a continuous forecast
I. Continue from existing forecast
Go to the Forecasts module and click Create Forecast.
In the Create Forecast popup, select Create from existing forecast.
Select a Forecast from the drop-down list.
Select Forecast period.
Forecast name and Forecast on cannot be changed. They will retain the values present in the old forecast.Click Next.
You will be redirected to the Set Target page.Either set target manually, notify users to set targets (for bottom-up model), or select an option from the Quickly set target dropdown.
In the Quickly Set Target drop-down, choose one of the options:
Zia suggested target
Existing forecast target
Existing forecast achievement
Click the Forecast period, next to the Existing forecast target and Existing forecast achievement to autopopulate the values.
Click Save.
II. Create for next period
Navigate to the Forecasts module and select a Forecast.
Click Create for next period.
In the pop-up, choose the Forecast period.
Click Create.
You will be redirected to the Set Target page.Either set target manually, notify users to set targets (in case of bottom-up model), or select an option from Quickly set target dropdown.
In the Quickly Set Target drop-down, choose one of the options:
Zia suggested target
Existing forecast target
Existing forecast achievement
Click the Forecast period, next to the Existing forecast target and Existing forecast achievement to autopopulate the values.
Click Save.
User actions from the Forecast list view
In the Forecast module, you can see the list of forecasts that are created for the organization. By default, a user will view the forecasts created for the current fiscal year when they land on the list view. Users can perform various actions from the list view such as:
Filtering and viewing selected forecasts.
Editing, renaming, deleting, or cloning forecasts.
Filtering forecasts
Forecasts can be filtered using the following criteria:
1. Forecast type: You can choose whether to view revenue or quantity-based forecasts.
2. Forecast year: The forecasts are grouped as past, current, and future year. You can choose one of the years to view all forecasts created during the time.
3, 4, 5. Forecast based on role, user, or territory: Based on the type of hierarchy used to create a forecast, you can filter and view forecasts created for a particular user, role, or region.
- Region and company filters for territory hierarchy can be used by users who are part of multiple territories.
- Role and user filter for role and reporting hierarchy will be available only to admins and users in highest role.
Renaming and deleting forecast
Rename: An admin, a forecast manager, or a user in the highest role can rename a forecast by clicking on the more (...) icon next to the forecast name.
Delete: Only an admin or a user in the highest role can delete a forecast. You can use this option to delete all forecasts created under the respective forecast name across all periods.
Editing, cloning, and deleting forecast period
You can find these options by clicking on the more (...) icon next to the forecast period.
Editing: The current forecast will be highlighted as the current quarter or month. You can edit them, but you cannot edit the targets of completed forecasts.
Deleting: Upon deleting a forecast period, the existing computation for the users, roles, sub roles, and sub territories will be deleted. The period will be deleted only from the particular forecast. There will be no change to other forecasts that may have been created for the same period.
Cloning: You can clone a forecast period of the current or future quarter or month. When cloned, the target of the original forecast period will be copied on the cloned forecast. The forecast name cannot be changed while cloning.
Viewing Forecasts
View forecast of individual user, role, or territory
In the Forecast list view, you can view all the forecasts that are created in the org. You can click on the desired forecast and expand the period to view the target, achievement, gap, current open deals, and the respective amount for each deal state (pipeline, best case, and committed).
Upon clicking the forecast created for the CEO (deal revenue Q2 2021):
The detailed report showing the target, total achievement, and overall gap will be displayed.
The current deals will be split as: open deals, pipeline, best case, and committed. Upon clicking on one of those numbers (eg. pipeline), you can view the list of contributing deals.
Similarly, you can click on the other categories to find deals contributing towards committed, best case, etc.
Likewise, if you click on the corresponding user, role, or territory under the forecast period, you can view their target break-up too. In addition, you can navigate to the other roles, territories, or users in the forecast by clicking on the hierarchy displayed right below the forecast.
Detailed view of all deals
In a forecast, you can click on the value under achievement and current open deals to see the contributing deals, the account they belong to, stage, amount, and more.
View complete hierarchy details
From the forecast listing, you can select a forecast period and click View Full Hierarchy to see the detailed breakdown of user, role, sub role, territory, and sub territory. You can see the total target, net achievement, and open deal amount. It will be split up based on category for each entity of the hierarchy.
Adjusting forecast revenues
Irrespective of carefully allocated targets and Zia's predicted achievements, the revenue of an organization might not close as targeted. There will be environmental and economic factors influencing the final amount, and one way to address this difference is to be aware of this deviation in the ongoing deals right away and adjust their expected revenue.
The target is the goal, and the achieved is an accomplished feat; the open deals display the deals in progress at various stages. Thus, to set realistic expectations, the sales representative or the sales manager can adjust their plausible revenue of these open deals.
- Pipeline deals means the deals are at their nascent stages and may take time to close and may not be closing by this forecast period.
- Best case deals are close to negotiation stage. They have above 50% chance to close within the forecast period, if pursued.
- Committed deals are at their final stages. The businesses or customers would have given their final nod on the quoted price, and their deals are at the verge of closure. These deals indicate assured money in this forecast period.
These open deal stages indicate the deals' potential and confidence in closing by the forecast period. Now, to set expectations on the revenue these deals bring for this period, the deal owner or their manager can adjust their values.
Notes: If you have custom forecast categories created in your layout, if they are mapped with open deal categories, then their values can be adjusted as desired. Learn about stage probability mapping and forecast categories.
The deal owner has a fair idea of the amount each open deal category can close at the end of the forecast period: They have direct interaction with their customers, know the momentum and progress of the deals, they are the ones that negotiate with customers and offer discounts, and they can predict shortcomings.
With these first-hand knowledge, the deal owner can adjust the total value of each open deal category.
To make owner adjustments
- Open the forecast report. As a sales rep or the owner, you would see all of your insights displayed in the target achievement report. If you have subordinates, their insights will also be displayed under your forecasts.
Click on the open deals category. You will see the categories and the list of participating deals.
Click on the pencil icon available next to each of the open deal categories. In the adjustment page,
To the Adjusted category value field, provide the total value that you would have assessed for deals in this category would close at by the end of the forecast period. The system will show you the percentage of the adjusted value from the target allocated. It will also display the existing value without adjustment for reference.
To the adjustment note field, provide the reason for this adjustment.
Example: Market slow, customer negotiating aggressively, competitor with equal offer, etc.Click Save.
Imagine the following scenario:
Zylker is into selling both residential and commercial real estate properties. The sales cycle varies between the type of sale that's been signed. As a manager, you would have experiential knowledge of the average closing time of these deals, and if they are included in the open deals and if you estimate that these deals will not close by the forecast period, you can pass your judgment.
All you have to do is toggle on the manager judgment against that deal in the list view, and the judgment of including that deal will be captured in comparison to the closed deal.
To make manager judgment
In the target achievement report of the desired user, click on their open deals.
To make value adjustment, follow the steps detailed in the owner adjustments.
To make judgment
Go to the deals listed.
Enable the toggle available under the Manager judgment column for each deal.
To validate the resulting amount after passing judgment,
The manager and the user can quickly refer the Judged as "In" deal revenue for each user.
- Adjustments work on the forecast level only and do not alter the actual deals' value.
- The adjusted value will be reflected/rolled-up in the open deal revenue of all the hierarchies higher-up and the adjustment switch will be displayed to indicate the overall adjustments.
- The manager must be a forecast manager to exercise this adjustment and judgment privilege and the adjusted values are visible for the adjusted forecast managers and other forecast managers higher-up in the hierarchy.
Note: To perform adjustments, the user and the reporting manager should have "Override forecast" profile permission enabled.
To enable or disable
Go to forecast module, click on the ellipsis icon (...), and select Forecast adjustments.
In the forecast adjustments page, do the following:
Select Manager adjustment to enable managers to adjust or overwrite the owner adjustments.
Select Manager judgment to mark a deal "IN" or "Out" of the revenue for the forecast period.
Select Owner adjustment to enable owners to adjust their open deal revenue.
Click Save.
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