Model Summary
The % of Sales model will be forecasted as a specified percentage of the overall sales for the revenue streams you select. % of Sales costs will fluctuate directly with sales in any given month.
To forecast costs as a % of sales you first must select all of the appropriate revenue streams that you would like to use as a basis for the projection. Once you’ve selected all of the appropriate revenue streams, associate the specific % of each revenue stream that you would like to contribute to the forecast of this cost or expense.
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Cost Category
The Cost Category field will determine where this cost will be placed on the income statement, and whether it will be included in specific analytics.
Select a category based on the following criteria:
Cost of Revenue: If this cost is directly used to produce, and provide, your products or services to customers.
Sales & Marketing: If this cost is used to attract, acquire or maintain new, existing or current customers. If Sales & Marketing is selected this cost will be included in the overall Cost of Customer Acquisition.
General: If this is a cost that generally contributes to the overall operations of the business or project, but is not directly tied to customer acquisition or revenue production.
Begin Month
The month you would like to begin projecting this cost.
End Month
Select the month you would like to stop forecasting this cost. The month you select will be the final month of the projection and you will no longer incur this cost in the months following your selection.
Credit Terms (Days to Pay)
The average number of days between the day this cost is incurred and they day it has to be paid.
Revenue Stream
Choose the specific revenue stream(s) you would like to use as the foundation for projecting this cost.
Expense as % of Sales
The total % of this revenue stream that will be contributed toward the forecasted cost.
+ Add Revenue Module
Allows you to include additional revenue streams as a basis for projecting this cost as a % of sales. Additional revenue streams will be cumulatively added to make up the total projected cost.