> For the complete documentation index, see [llms.txt](https://kb.bevica.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://kb.bevica.com/documentation/reporting-and-analytics/reporting_in_bevica_-_overview/item_group_forecasting.md). # Item Group Forecasting Calculate forecasts from Item Sales History and feed the Requisition Worksheet. Item Group Code and [Item History (Sales)](/documentation/reporting-and-analytics/reporting_in_bevica_-_overview/item_history_-sales.md) can be used to calculate a simple sales forecast to help with purchasing decisions, which can then be used in the Requisition Worksheet. {% hint style="info" %} **Note:** Bevica **Item Sales History** is a separate extension. Please contact your system administrator or your TVision contact if you would like further information or would like to install Bevica Item Sales History. {% endhint %} {% hint style="info" %} ## Prerequisites Posted Item transactions Sales History Item Groups assigned to items. {% endhint %} ## Creating a Forecast 1. Go to **Bevica Setup** 2. On the ribbon go to Related > Operations > Forecasting > **Calculate Forecast from Item History** 3. Set the following fields: | Field | Usage | | -------------------------------- | --------------------------------------------------------------------- | | Production Forecast Name | The Demand Forecast you want to use | | Delete Existing Forecast Entries | If re-using a forecast you can clear it first | | Location Filter | If you want to filter entries only by a particular Location | | Start Date | The date of the first forecast entry. Should always be 1st of a month | | No. of Periods | The number of future periods to forecast | | Period | Months only | | Item Group Code Filter | The item group you want to forecast for. Filter from available fields | | Item Sales History Filter | Filter from available fields | Then select **OK**. The selected **Demand Forecast** will be populated with entries from the Item Sales History table plus the forecasted values. The 'Description' field on the **Demand Forecast Entries** shows Forecast where it is a forecasted value and for item history values shows the item history entry no. Sales for individual items are in the history entries, but forecasted entries use the 'Replenishment Item No.' from the Item Group Code. ### Prediction Rules Four prediction rules are available: * **Quantity +/-** takes the sales from the same month in the last year then adds or subtracts the **Percentage** value. * **12 Month Average** calculates the average over the last 12 months of sales, then applies the percentage variance. * **3 Month Average** calculates the average over the last 3 months of sales, then applies the percentage variance. * **3 Month Weighted Average** calculates the average over the last 3 months of sales but allows a bias to be entered for the most recent month by using the value. ### Prediction Rules Examples Assuming we have the following settings: * Percentage = 0% * \= 0.7 And that we're forecasting for 3 future months starting from 1st February 2022. | Month | Sales | Quantity +/- | 12 Month Avg. | 3 Month Avg. | 3 Month Weighted Avg. | | ------ | ----- | ------------ | ------------- | ------------ | --------------------- | | Jan-21 | 67 | Actual | Avg. | | | | Feb-21 | 70 | Actual | Avg. | | | | Mar-21 | 67 | Actual | Avg. | | | | Apr-21 | 58 | | Avg. | | | | May-21 | 98 | | Avg. | | | | Jun-21 | 66 | | Avg. | | | | Jul-21 | 96 | | Avg | | | | Aug-21 | 69 | | Avg. | | | | Sep-21 | 53 | | Avg. | | | | Oct-21 | 55 | | Avg. | | | | Nov-21 | 53 | | Avg | Avg. | Actual | | Dec-21 | 59 | | Avg. | Avg. | Actual | | Jan-22 | 96 | | Avg. | Avg | Weighted Actual | | Feb-22 | | 70 | 70 | 69.3 | 78.4 | | Mar-22 | | 67 | 70 | 69.3 | 78.4 | | Apr-22 | | 58 | 70 | 69.3 | 78.4 | Calculations being: 1. **Quantity +/-** Feb 2022 = Feb 2021 2. **12 Month Average** Feb 2022 = SUM(Feb 2021 to Jan 2022) / 12 3. **3 Month Average** Feb 2022 = SUM(Nov 2021 to Jan 2022) / 3 4. **3 Month Weighted Average** Feb 2022 = (Jan 2022 \* 0.7) + ((1 - 0.7) \* (Dec 2021 + Nov 2021)) / 3 ## Requisition Worksheet ### Stockkeeping Units Items must have a **Stockkeeping Unit** (SKU) for the location(s) that the demand forecast will be used for. The SKU should be location specific and not split by variant code. Refer to this article: [Set up stock keeping units](https://docs.microsoft.com/en-gb/dynamics365/business-central/inventory-how-to-set-up-stockkeeping-units) You can run a **Create Stockkeeping Units** report to generate SKU's for multiple items. ### Planning Parameters The planning system in Business Central is complex and can involve a lot of trial and error testing to understand it fully. Details can be found here: * [Setup best practices supply planning](https://docs.microsoft.com/en-gb/dynamics365/business-central/setup-best-practices-supply-planning) * [Design Details Supply Planning](https://docs.microsoft.com/en-gb/dynamics365/business-central/design-details-supply-planning) Note that the requisition worksheet shares functionality with the planning worksheet which is used in manufacturing processes. In the standard documentation these references are sometimes interchanged. We would recommend the following setup on the Planning FastTab of the Item or SKU. We also recommend understanding what the function of the fields is: | FastTab | Field | Setting | Notes | | ------------- | ----------------------- | ----------- | -------------------------------- | | Replenishment | Replenishment System | Purchase | | | | Vendor No. | Not blank | Vendor should have a lead time | | Planning | Reordering Policy | Lot-for-Lot | | | | Dampener Period | 1M | To fit with the forecast periods | | | Include Inventory | Yes | | | | Lot Accumulation Period | 1M | | | | Rescheduling Period | 1M | | ## Running the Requisition process 1. Go to **Requisition Worksheet** and select **Process > Calculate Plan** from the ribbon 2. Set the appropriate parameters on the options, making sure you choose the correct **Use Forecast** value. 1. The **Item** filter should be set to the replenishment item from the Item Group Code if you want to filter to a specific item 3. The Vendor set on the Item (or SKU) is used as the Vendor No. and the Variant Code (duty type) on the requisition worksheet comes from their default duty code setting. 1. To have multiple vendors for an item it should be set in the **Item Vendor Catalogue** 4. Once you have the plan then use the standard functions to create or amend purchase orders in bulk: [Requisition Worksheet](https://docs.microsoft.com/en-gb/dynamics365/business-central/production-about-planning-functionality#requisition-worksheet) --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. 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