1. Go to the P&L
Go to Work > P&L.
2. Add a forecast
Under Forecast, click the Add button to enter your sales forecast.
What is gross revenue?
This is the amount you think you will sell of each of your editions of your work’s products. It’s the money you receive in from customers after their discount, sometimes known as ‘net receipts’. It is called ‘gross revenue’ because it is before returns.
3. Add channel-level forecasts
You see the channels listed for each product, along with the sales profile, returns profile and quantity.
Adjust the profiles for sales and returns for each channel. Then enter in the quantities and click Save to return to the P&L.
Sales profiles and returns profiles are pre-defined ratios of sales that you expect month-by-month from particular kinds of products.
- A ‘lead title’ might have a strong first month of sales, followed by a steep decline.
- A ‘Slow builder’ might have a gentler curve.
Consonance uses these profiles to calculate detailed forecast numbers, saving you the task of entering them manually. Set these up in Configuration > Settings > Sales profiles and Configuration > Settings > Returns profiles.
- Choose a name and description that suits your needs.
- Enter relative numbers to each month to create the curve. These do not need to be percentages: the numbers 100, 20, 20, 20, 20 in the first five months generates the same curve as 50, 10, 10, 10 10.
- Click Save
- Return to the P&L page.
4. Save and review
After saving your quantities and profiles, you now see your forecast gross revenue on the P&L. Edit your quantities: click the Add button.
How was my forecast gross revenue calculated?
Consonance has used the quantities you’ve just entered, as well as the retail price of each product (amendable in Metadata) and the average discount for your chosen channels (amendable in Settings > Sales channels).
What about foreign currencies?
If you enter this income in dollars based on the dollar price, the dollar income is converted into your base rate (sterling if you are UK based) in Consonance, because you would need all income to be in sterling in the P&L for the purposes of comparison. The exchange rate is set in Configuration > Settings > Currencies. Read about how to set them in Currencies.
5. Edit your forecast
If you want to view or edit your forecast gross revenue, click drilldown. You see the estimated revenues (Estimate amounts) produced by your quantities. Click the Edit link to amend an estimate amount.
The money history column lists any estimates you’ve previously created for each product and channel. If you amend an estimate, it’ll be recorded here.
6. Add your confirmed gross revenue forecast
Click + to open a form to add a confirmed revenue.
What is confirmed gross revenue?
This is revenue from orders that you’ve already received (a grant, for example). Despite being confirmed, it is still be included in the forecast. Click the charts icon to view your confirmed sales orders for a work. If you an order isn’t appearing on the P&L, check that its status is set to ‘Approved’ and that there is a base currency set (in Settings > Configuration > Finance > Currencies ⤴). If a co-edition deal is confirmed, add it as a confirmed gross revenue. Go to the Production summary page to create a co-edition. Consonance then uses the quantity and the price to generate a confirmed order in your base currency.
7. Add line items
After creating a revenue and clicking save, you see that you’ve created a sales order. Click Add a line item to build up the order or go to Work > P&L.
After returning to the P&L, you see your confirmed gross revenue has updated. If you want to edit, click drilldown.
8. Co-edition forecast gross revenue
If you don’t know how much revenue you will get from the co-edition deal yet, add a co-edition gross revenue forecast rather than a confirmed sales order. Click on the + on the Co-editions forecast gross revenue line.
Fill in the form.
Return to the P&L by clicking on P&L, where you see your forecasts updated. Click drilldown to edit.
Why hasn’t my forecast updated?
This may be because you are missing some key data. Check that you’ve entered prices for each product in the currencies you need for your channels in Metadata. Check that each channel has an average trade discount: %<= t(:Gotothechannelspage) %>.
9. Licensed rights deal forecast gross revenue
If you expect to do a rights deal, click + to enter your forecast gross revenue
Add the language, rights type, revenue type, sales profile, amount *and *deal start date. Click Save.
You see your forecast gross revenue updated with your licensed rights deal.
Have you added licensed rights to your head contract?
If not, click on the Contract tab and scroll down to Licensed rights
Click the Edit icon to open a form.
Enter the details of your chosen licensed right and click Save to close.
Click P&L to return to the P&L.