Predict future demand

The Purchasing Management report helps you accurately predict future demand and make well-informed decisions about which products to order and when to place the order. The forecast is based on your sales history, profit, and the number of days stock is held before being sold. You can select the desired forecast period and create Purchase orders based on the recommended reorder quantity.

Demand Forecasting can be performed in the following ways:

• By sales — based on data about products sold during the selected period;
• By consumption — based on data about products used as raw materials in production and listed in the Operation Report.

To create a Demand Forecasting, select Purchases → Purchasing Management and click By sales or By consumption to select the preferable variant.

Use the filters to sort the data you need. Click to save the search parameters. Click to customize the report.

You can also print the Purchasing Management report in Excel, PDF, or Open Office Calc, and receive the reports automatically via email.

• Predict future demand by sales
• Predict future demand by consumption
• Purchase order based on the forecast
• On Hand calculation

Predict future demand by sales

The report for each product provides the following indicators:

• Product name, SKU, Supplier Code, Unit of measurement (UOM).
• Sales History:
  • Quantity (Qty) — the quantity of products sold during the selected period. The analysis period is specified in the filter.
  • Amount — the revenue generated from the sold products.
  • Cost Amount — the cost of the sold products.
  • Profit = Amount − Cost Amount.
  • Margin = (Profit ÷ Cost Amount) × 100%.
  • Sales per Day = Qty ÷ Number of days in the period.
• Current Balance:
  • On Hand, Committed, In Transit, Available — represent the stock status at the time of the report generation. On Hand Calculation
  • Days in Stock — the number of days the product has been in stock as of the report generation.
• Forecast:
  • Days of Stockpile = Available ÷ Sales per Day — the number of days required to sell the available stock.
  • Stockpile = Days of Forecast × Consumption per day — the quantity of product that will be used during the forecast period. You can adjust the forecast period in the Forecast for XX Days field. After making changes, click Find in the filter.
  • For Order = Stockpile − Available — the quantity of product that needs to be purchased if the current stock is insufficient to meet the demand during the forecast period.

Predict future demand by consumption

The report for each product provides the following indicators:

• Product name, SKU, Supplier Code, Unit of measurement (UOM).
• History of consumption:
  • Quantity (Qty) — the quantity of products used as raw materials in production during the selected period. The analysis period is specified in the filter.
  • Cost amount — the cost of the used products.
  • Consumption per day — the average quantity of products used as raw materials in production per day.
• Current Balance:
  • On Hand, Committed, In Transit, Available — represent the stock status at the time of the report generation. On Hand Calculation
  • Days in Stock — the number of days the product has been in stock as of the report generation.
• Forecast:
  • Days of Stockpile = Available ÷ Consumption per day — the number of days required to use the available stock.
  • Stockpile = Days of Forecast × Consumption per day — the quantity of product that will be used during the forecast period. You can adjust the forecast period in the Forecast for XX Days field. After making changes, click Find in the filter.
  • For Order = Stockpile − Available — the quantity of product that needs to be purchased if the current stock is insufficient to meet the demand during the forecast period.

Purchase order based on the forecast

Based on the forecast, the following types of Purchase Orders can be created:

• Common — a single Purchase Order is created for an unspecified supplier. To assign a specific supplier, edit the order;
• Split by Suppliers — multiple Purchase Orders are created for the suppliers specified in the product cards. If no supplier is specified in the product card, the order is created for an unspecified supplier.

To create a Purchase Order based on the forecast, select Purchases → Purchasing Management, click +Purchase Order and select the preferable variant in the drop-down menu.

On Hand calculation

The On Hand calculation in the report is influenced by the following:

• Purchase Order (considered if marked as In Transit) — increases In Transit and Available.
• Purchase Return — decreases On Hand and Available.
• Receiving — increases On Hand and Available.
• Sales Order (considered if marked as Committed) — increases Committed and decreases Available.
• Shipment — decreases On Hand and Available.
• Sales Return — increases On Hand and Available; decreases Profit and Profit Margin.
• Stock Adjustment — increases On Hand and Available.
• Write-off — decreases On Hand and Available.
• Production Order (considered if marked as Committed) — increases Committed for raw materials and decreases Available for raw materials. No filtering by warehouse.
• Operation Report — increases On Hand and Available for finished products; decreases On Hand and Available for raw materials. No filtering by warehouse.