Correction Factor in Forecasting view

[Former Member]

Dear Gurus,

Can any one throw light on the correction factor tick which is there in Forecasting view - Control Data.

If we maintain the correction for the current year 2008 and factor as 2.500, what does it mean.

Is the forecast value - suppose 100, with correction factor will be displayed as 250 if tick is applied.

Pl. reply.

Srini

[Former Member · Accepted solution]

Hi,

Indicator: correction factor

You set this indicator if you want the correction factors as defined in customizing to be used in the calculation of the forecast values.

means if you have marked tick for correction factor tick in Forecasting view and if it's value is defined as 2.5 in customizing then your forecast value suppose 100 as u told will be multiplied with 2.5 and it will become 250.

pls. find more details about the same :

Correction factor for period forecast values

Factor that is used to weight the calculated forecast value.

Procedure

If the correction factors indicator ("Correction factors" field) is set in the material master record, the system reads the correction factors defined in the table when it runs a forecast, and weights the historical and forecast values of the relevant periods accordingly.

Maintain Correction Factors for Forecast

You use the correction factors to influence the forecast calculation:

determining the requirements

Here, the requirements quantity for the period is multiplied by this correction factor.

weighting consumption

Here, the quantity consumed for the period id divided by this correction factor.

Note

You need correction factors to take deviations in consumption quantities and in requirements quantites in MRP into account.

Recommendation

Actions

1. In the material master record, you determine for every material whether or not you want to work with correction factors.

2. Maintain the correction factors for a specific plant.

HOpe this helps.

Regards,

Tejas