Sales Cycle Method

Many businesses have an annual sales cycle. The most common example is a retail outlet that has most of its sales leading up to Christmas. The Sales Cycle method annualizes a partial period based on the business's sales cycle so that the data will reflect seasonal variations.

Applying the Sales Cycle Method

To apply the Sales Cycle method:

On the Financial Statements Assumptions Sheet, set the Annualization Rate Calculation Method assumption to Sales Cycle.

From the Financial Statements \ Adjustments \ Income Statements folder, select the Sales Cycle Worksheet.

For each month, enter last year's revenue for that month.

The annualization factor is calculated automatically and applied in the last column of the income statement for the partial period.