Forecasting Unit Sales Revenue Streams

If you want to enter the number of units you expect to sell, along with the price for each, choose the  Unit sales revenue stream model, and the system will calculate the totals automatically.

Keep in mind that how you define a 'unit' depends on what you sell. If you offer selling products, or widgets, just enter the quantity of those widgets (shirts or computers or whatever) you think you'll sell. Please take into consideration what best aligns with the needs of your business.

For other offerings, you might want to use 'units' to mean consulting engagements, collecting service fees, service charges, fixed-price contracts, or pallets of low-value materials, We recommend you go for Entering service charges revenue streams. 

Adding a Unit Sales Revenue Stream:

1

In your financial forecasting tool, Navigate to the Revenue tab and click on the Add Revenue Stream option:

2

In the overlay that appears, Enter the  Revenue Stream title and click on Save & Next:

3

There are 5 ways to forecast revenue streams. You'll choose the type of  Unit Sales when you set up a revenue stream by clicking the appropriate option.

4

Units: Enter the number of units of this product you think you'll sell. This can be either a constant amount per month or year or varying amounts.

If you chose  The constant amount, enter the number of units you forecast for the month, quarter, or year:

Estimate and enter what will be the percentage change that happens in Units over time.

Inventory Tracking: Sometimes, A product-based business needs to keep track of inventory. For Example, A furniture manufacturer must purchase raw materials to make its products. Then the finished products are held as inventory until they're sold to customers. In those scenarios please enable inventory tracking, Learn more about Adding and managing inventory for product-based Revenue Streams.

If you chose Varying amounts over time, enter the number of units you forecast to sell in any months you prefer:

5

Price: Enter the amount you will charge for each unit of this product. You can enter a constant price or varying prices over time:

Enter the sales tax rate applied. The system will calculate your taxes and add them to the forecast automatically.

6

Refund: Unexpected product returns risks involved with businesses who provide refunds to their customers on product returns, Let's enter how much refund rate you estimate over revenue regenerated by Revenue Stream :

7

Start and End period: Indicate when the revenue starts and end period. Click on save. 

Editing or Deleting A Revenue Stream:

To Edit an Existing Revenue Stream:

1

In the Revenue groups, click on the grid icon of the revenue stream you'd like to edit:

2

In the overlay that will appear, To start editing the revenue stream, Click on the  Edit option:

3

In the form that will appear, You can click on any input fields that you wish to edit:

4

Make your desired changes, and then click on the Save to apply changes.

To Delete a Revenue Stream:

1

On the Revenue Stream, click on the trash option to delete the revenue stream as below:

2

Click on Ok, Remove to confirm the action.

Where does this entry appear in the financial statements?

Your revenue streams will be used to calculate the highlighted lines in the Profit & Loss and Balance Sheet table shown below: