Forecasting refers to the process of predicting future values based on historical values. For instance, you might want to predict this year’s sales based upon the past two years. When providing financials for a company, it is standard to include actual data (actuals) and predicted data (forecast). With the Forecast Sheet feature in Excel, you can quickly create a visual financial forecast of your sales data or view trends in any time-based data, such as inventory or number of customers.
The Forecast Sheet feature is on the Forecast group of the Data Ribbon. Once you click Create, Excel inserts a new worksheet containing a table and a chart, containing actual values and forecasted values.
To Create a Forecast
- Select that data range you want to use.
- Click the Data tab on the Ribbon.
- Click the Forecast Sheet icon on the Forecast group of the Ribbon.
- To view additional setting, click Options on the bottom of the window. Make any desired choices.
- Click Create