Forecast
A forecast is the process of estimating and allocating a budget in advance for a property or project. It relies on analyzing current expenditure patterns from allocated budgets to project future financial needs.
Key aspects of forecasts:
• Budget calculation: The remaining budget balance is determined by subtracting forecasted expenditures from the allocated budget, converting predictions into actionable financial commitments (e.g., orders/contracts).
• Prerequisites: Existing commitments (current orders/contracts) and anticipated future expenditures must be evaluated before creating a forecast.
• Immutable nature: Once finalized, a forecast's budget allocation becomes locked and cannot be modified.
• Value types:
◦ Hard forecast: A fixed projection of remaining budget based on confirmed commitments
◦ Soft forecast: A flexible prediction accounting for potential variables that could impact the hard forecast