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Unformatted text preview: ing the actual sales were lower
than planned. Positive numbers here mean actual
sales were higher than planned.
As you look at the variance for the sales forecast
for the ﬁrst three months, you should see several
1. Unit sales of systems are disappointing,
well below expectations.
2. The average revenue for systems sales is
3. Unit sales for service are disappointing,
but dollar sales are way up.
The Variance setting automatically shows plan vs.
actual results for the different tables in the menu. 4. Sales are well above expectations for
software and training. HURDLE: THE BOOK 20.4 ON BUSINESS PLANNING Adjusting the Sales Plan
The Adjusted Sales Plan in Actual Table illustration shows how the company from the previous page
makes its course corrections. Compare the difference in the February and March columns in the
Beginning Sales Plan illustration, the original plan, page 20.3, and the Adjusted Sales Plan in Actual
Table shown below. ADJUSTED SALES PLAN IN ACTUAL TABLE The illustration shows revisions in the April and May columns, even before they happen, to reﬂect
the changes shown in the January-March period.
In this example, if the company knows by March that real sales will be different from planned goals
in April, they should estimate the revised forecast, as a correction to future results. When the actual
results are available, they can replace revised plan numbers with actual results. The actual results area
can then become a plan area for course corrections.
In the Adjusted Sales Plan in Actual Table illustration above, notice how the forecast has been revised
for April and May. Since the company knew systems sales would be down, they planned on it and
made a revised forecast in the actuals area. The same revision affects projected proﬁts, balance sheet,
and — most important — cash. CHAPTER 20: PLANNING FOR IMPLEMENTATION The Starting Plan for
Proﬁt and Loss 20.5 PLANNED PROFIT AND LOSS Following the sales example
in this chapter, the Planned
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- Winter '09