Sales Forecasting terminology

Use the following list of terms to gain an understanding of Sales Forecasting concepts, components, and configuration.

Forecast Model

The Forecast Model is a framework or method used to predict future sales based on historical data, current sales activities, and other relevant factors. It helps businesses estimate the expected sales figures over a specific period, such as a quarter or year. Only one forecast model, Opportunity Amount Forecast is available to the users. You can forecast the sales for the current opportunities in the system. The Submission Required option is enabled by default. From the Submission Frequency list, select weekly, monthly, or configure a customized time period to submit your final forecasts. For more info, see Creating business calendars. By default, Sales Team is selected in the Forecast Hierarchy Type list and the Sales Forecasting dashboard displays the forecasts based on sales teams. To view forecasts by regions or territories, select Territory from the Forecast Hierarchy Type list. To configure a territory see, Configuring the Territory. For more info, see Sales Territory Management​.

Forecast Category

The classification of opportunities is based on the level of certainty regarding their closure. The longer a sales prospect progresses along the sales pipeline, the better their chances of converting.  The forecast admin can configure these categories. By default, these six categories are available:

• Won:  Opportunities that have already been closed and won.​
• Commit: Opportunities that sales representatives are confident will close in the forecast period.​
• Strong upside:  Opportunities with greatest potential to close but have some minor uncertainty.
• Upside: Opportunities with potential to close but with lower level of certainty.
• Pipeline: Opportunities in the early stages of the sales process with uncertainty if they will be closed deals.
• Omitted:  Opportunities that are excluded from forecast​ due to lack of data.

Forecast rollup method

The forecast model defines how opportunities in different categories are aggregated into a forecast. ​There are two primary types of rollups: single and cumulative.

When you select Single, this rollup method ensures that each forecast category is represented in its own column, with only the opportunities in that category being included.

Table 1. Single rollup method

Column Name on Forecast page	Opportunities that roll up to it from a forecast category
Pipeline	Pipeline
Upside	Upside
Strong Upside	Strong Upside
Commit	Commit
Won	Won

When you select Cumulative, this rollup method aggregates forecast categories in a cumulative manner, where each subsequent category includes the opportunities from the previous categories. Each cumulative rollup method aggregates opportunities from higher order forecast categories.

Table 2. Cumulative rollup method

Column Name on Forecast page	Opportunities that roll up to it from a forecast category
Open pipeline	Pipeline + Upside + Strong Upside + Commit + Won
Cumulative Upside	Upside + Strong Upside + Commit + Won
Cumulative Strong Upside	Strong Upside + Commit + Won
Cumulative Commit	Commit + Won
Won	Won

Forecast schedule

The forecast schedule fetches all the opportunities in the system and generates the latest forecast data.

Sales Quota Management

You can assign sales quota targets to sales representatives and managers based on their hierarchy, role, and forecast period.

What to explore next

• Configure Sales Forecasting
• Using Sales Forecasting