Sales Forecasting


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Sales Forecasting an easy and Simple tool . Created using excel trendline values and seasonal Indexing.

Published in: Business, Technology

Sales Forecasting

  1. 1. Sales Forecasting tool Easy and Simple toolwww.LCDing.Com
  2. 2. Forecasting tool There are many methods of forecasting sales This can be a small handy tool for you to forecast sales using trendlines in excel Download excel by clicking the link here! or , access @downloads on my blog LCDing
  3. 3. How to use the tool ? First read “Readme” sheet in excel. If it makes sense , try it! What you need is at least 2-3 years of monthly data to forecast – the more the merrier! Follow 3 simple steps
  4. 4. Step 1Just input first month of the pastsales data you have in the formatmmm-yyyy in the cell E10e.g: January 2006 as Jan-2006Rest of the months‟ names areautomatically generated
  5. 5. Step 2First delete dummy datagiven in the worksheet incolumn F from F10 to F81Now,input sales from cellF10 …till the present month(maximum of 180 Months)As the number of cells in thecolumn taken forcomputations are 192, somecells in the column may befound empty. Leave them asit is…One Last step to read theforecast of sales!
  6. 6. Step 3Bingo!Forecastsare here!
  7. 7. Caution ! Forecasting works on a principle that the future will be like present ( Similar conditions may prevail ! ) The hope is that near future is not going to be radically different! ( However, who can predict economic meltdowns and Tsunamis ? ) It is idiocy to forecast sales of next 5 Years when you are not sure about the present month sales. Forecasts of distant months (more than 12 Months) could go grossly wrong. Despite all, you may find the tool useful !!!
  8. 8. The „How‟ of this tool ..Best fit Trendline andseasonal indexing isused for forecasts.Test the strength of othertrendlines using thedropdown option here.Seasonal Variations areautomaticallycomputed to give “FinalForecast with SeasonalTrend”
  9. 9. This is Group & Ungroup button If want to check How data is gettingpopulated - click the grouping button “+”
  10. 10. This is where the computations are done for various trendlines
  11. 11. Here are the formulae at the bottom of the sheet
  12. 12. www.LCDing.Com