What is a Department Revenue and Expense Forecast Form?

Financial forecasts by department are considered important corporate planning tools and are used by budget managers and department heads to manage revenues and expenses and to replace annual budget figures. One key functionality in this type of forecast form allows users to view actual historical amounts through the current month and input forecast amounts for the rest of the year. You will find an example of this type of forecast form below.

Purpose of Departmental Forecast Forms

Companies and organizations use Departmental Forecast Forms to replace annual budgets for the current year and have a fresh outlook for the remaining periods. When used as part of good business practices in a Financial Planning & Analysis (FP&A) and Accounting Department, a company can improve its planning accuracy and its use of resources, as well as reduce the risk that the company completely misses its financial targets.

Departmental Forecast Form Example

Here is an example of a parameter-driven forecast input template by GL account and department.

Department Revenue and Expense Forecast Form

Department Revenue and Expense Forecast Form

You can find 100’s of additional examples here.

Who Uses This Type of Forecast Form?

The typical users of this type of forecast form are: CFOs, controllers, budget managers and department heads.

Other Forecast Forms Often Used in Conjunction with Departmental Forecast Forms

Progressive Financial Planning & Analysis (FP&A) and Accounting Departments sometimes use several different Departmental Forecast Forms, along with sales forecasts, 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 SL, Sage Intacct, Sage 100, Sage 300, Sage 500, Sage X3, SAP Business One, SAP ByDesign, Netsuite and others.

In analyses where budgets or forecasts are used, the 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)

Corporate Performance Management (CPM) Technology Solutions and More Examples