Sales Budget per Product for a Retail Company

    What is a Sales Price and Cost Budget per Product ? Product price and cost budget templates are considered an essential component of a retail sales budget or forecast and are used by regional sales executives and store managers to plan for weekly or monthly sales. Key functionality in this type of input form displays items by product group down the rows and Price and Cost in the columns. Using budget versioning, multiple price and cost scenarios can be created. The resulting figures are pulled up in a Quantity input template and used to calculate the total expected sales revenue per item. While a corporate user often enters the price and cost in this template, it is typical that regional managers or store managers later capture the forecasted sales quantities. You will find an example of this type of input form below. Purpose of Product Price and Cost Models Retail companies use Product Price and Cost Models to easily capture detailed estimates per item that is then multiplied with sales quantity forecasts to drive the total sales revenue per product, store, region and when consolidated. When used as part of good business practices in a Financial Planning & Analysis (FP&A) department, a retail corporation can improve its sales forecast accuracy which helps to budget for expenses and investments, as well as, reduce the chances that inventories end up too high or too low. Product Price and Cost Budget Model Example Here is an example of Retail planning template for Product Price and Cost. [caption id="" align="alignnone" width="2560"] Sales Price and Cost Budget per Product for a Retail Company Sales Price and Cost Budget per Product for a Retail Company[/caption] You can find hundreds of additional examples here. Who Uses This Type of Input Form ? The typical users of this type of input form are: Budget managers, regional sales managers, product managers. Other Input Form s Often Used in Conjunction with Product Price and Cost Models Progressive Financial Planning & Analysis (FP&A) Departments sometimes use several different Product Price and Cost Models, along with sales quantity budgets, capex, operating expenses, cash flow plans and other management and control tools. Where Does the Data for Analysis Originate From? The Actual (historical transactions) data typically comes from enterprise resource planning (ERP) systems like: Microsoft Dynamics 365 (D365) Finance, Microsoft Dynamics 365 Business Central (D365 BC), Microsoft Dynamics AX, Microsoft Dynamics NAV, Microsoft Dynamics GP, Microsoft Dynamics SL, Sage Intacct, Sage 100, Sage 300, Sage 500, Sage X3, SAP Business One, SAP ByDesign, Acumatica, Netsuite and others. In analyses where budgets or forecasts are used, the planning data most often originates from in-house Excel spreadsheet models or from professional corporate performance management (CPM/EPM) solutions. What Tools are Typically used for Reporting, Planning and Dashboards? Examples of business software used with the data and ERPs mentioned above are:
    • Native ERP report writers and query tools
    • Spreadsheets (for example Microsoft Excel)
    • Corporate Performance Management (CPM) tools (for example Solver)
    • Dashboards (for example Microsoft Power BI and Tableau)
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