How to automate Stock Movements in your forecast

In this guide we’re going to walk through how we can automate our stock movements by combining FUTRLI’ Formula Forecast Method and Advanced Options. This will involve us forecasting Stock purchases on the Balance Sheet and then using a Formula to decrease the value of our Stock as Sales are made.

Written by Ross MacLeod

 

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In this guide we’re going to walk through how we can automate our stock movements by combining FUTRLI’s Formula Forecast Method and Advanced Options. This will involve us¬†forecasting Stock purchases on the Balance Sheet and then using a Formula to decrease the value of our Stock as Sales are made.

Step One

First, we create a Forecast Item against our Stock Line to represent a new purchase. This will cause our Stock line to increase by the value indicated:

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Step Two

Next, we’re going to create a Forecast Item on our Direct Costs line which is tied to our Sales. This will allow us to automate our Costs and associated Stock movements. In this example we’re assuming that our Costs will be 30% of our Sales, and forecasting accordingly using the Formula Forecast Method:

We’re then going to set our Credit Terms and VAT to zero and select our Advanced Options. Here we’re going to enter this as a No Cash Item, which will decrease the value of our Stock:

Now, whenever we enter Sales on our Sales line:

We’ll see 30% of the value of the Sale automatically being assigned to Direct Costs:

And our Stock Value fall by the same amount: