Top-down forecasting uses sales projections for categories and narrows them down to products based on the product contribution into the category.
When should you use top-down forecasting?
- When you have enough sales data in categories (more than 12 months), the top-down forecasting can automatically account for spikes in sales.
- It also works for products without long sales history. Top-down forecasting uses the product category pattern to help predict future sales.
To enable top-down forecasting, go to Account -> Settings -> Forecasting and enable Use top-down forecasting setting.