Detailview for term
- name of the term: Sales Budget
- descriptions of the term:
Head or Number?
This term is often used synonymously with sales planning. Sales and turnover can hardly be separated in terms of content. There are two sides to a coin: head or number / sales or turnover?
Anyone who plans only sales, but not turnover as well (and thus explicitly the price development) will be able to make sensible assumptions about the development of costs in his profit and loss account at best. Anyone who plans tunrover at the same time as sales and determines the demand for goods that can be assumed for the planning horizon would be much better.
Many variants are conceivable and feasible, but they will lead to the same goal: Consistent planning of sales volumes, prices and turnover.
In the case of simultaneous planning of quantity, price and turnover, the quantities are determined from the given sales and price (or vice versa). Depending on the size of the article master, you can plan on individual articles or on meaningful aggregations (for example, product group). You could also convert sales to quantity view using a price table.
Using the splashing algorithms of the planning system, the aggregated values are then broken down to the level relevant for production (individual items) and form the basis of production planning, purchasing planning and capacity planning. Special cases of sales planning are subscription models in which the planned conclusion of a contract generates a specific output of the article I of the company's performance over a period of one or more years. Sales planning does not have to be done by hand - depending on the business model, a sales plan can also be created very well using AI methods.