Question:
When defining the time period to base the proportional factor calculation could anyone describe what needs to be considered when defining the interval to use. Currently we use 6 months history to calculate the proportions going out 18 months.
Other factors to bear in mind are that history is loaded from an InfoCube but realignment is carried out in the planning area (but not the InfoCube). Would it be better to use the the planning area as the basis for calculation?
Any ideas anyone has would be greatly appreciated.
Answer:
There are no specefic rules as such for this but it depends more on the type of data you have.
If the data is more random then use long historixal periods to average out randomness
If the data has a aggressive trend then you short horizon to get the latest trend
If its seasonal use atleast 1 seasonal cycle of historical data.
you also need to use periodicity accordingly for all the above
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