Budgeting Allocation , Material

Power BI Data Model
1

Hi, I am super excited to be part of this community. Thanks for your hard work on this important topic material, Sam. I really get many benefits from this excited material.

I have 4 Questions Regarding Budgeting,

Q1) About the measure (Product Sales to reach the budget (PSB) ) as the picture shows Auckland need extra 183,082 $ to reach the budget

Budget%20Reaching
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The calculation of (PSB) for Auckland = 78$ Does it means the average one unit price for each product in Auckland to reach the budget should be 78 $? If not then what is it? and what the number of Quantity Items we need to sell in order to reach the budget for that particular City?

Q2) Do You think it is more feasible to reach the budget through the average order size?
Note: average order size=Total Sales/Total No Of Orders?

Q3) The Measure (Days In Year) = 366 days, It is common in the real world that one year = 365 days, why it calculated with additional one day?

Q4) What is the main reason(benifits) for using the Cumulative total sales?

2

  1. This is just working out how many units at the average sale price for that region you would need to sell to reach budget

  2. I believe it is average order size from memory on this particular example

  3. In leap years yes. I believe 2016 was the last leap year and potentially this is filtered on 2016

  4. Cumulative total sales? I can’t see it there, but in general cumulative totals are the best visual for showcasing trends over time, and comparing trends over time in my view.

3

Thank you,
Sam Can you please check this equation and correct it if it is wrong:

Auckland Has shortages by 183,082 $ to reach the budget, based on the Measure (PSB) we need to sell at least 78 units with average item price for Auckland = 2,260.42 $ (Total Sales In Auckland/Total Quantity) if we calculate the equation would be:
2260.42 * 78 = 176,313.11 ----> but the result is less than the (PSB) by 6768 $ , Is this equation True or not? what about the small amount of shourtage?

4

This is what I see it’s being worked out at.

Rather than get caught up with specifics, the technique and way of thinking how to solve insights like this is what should be the focus.

That is the same with all the material and content released by Enterprise DNA. By understand the technique you can learn how to audit the results quite easily.

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5

Thank you sam