> ## Documentation Index
> Fetch the complete documentation index at: https://docs.encoreos.io/llms.txt
> Use this file to discover all available pages before exploring further.

# Rolling Forecasts & Scenario Planning — User Guide

> This module extends the budgeting system with rolling forecasts, budget scenarios, and reusable budget templates. It enables dynamic financial planning through…

## Overview

This module extends the budgeting system with rolling forecasts, budget scenarios, and reusable budget templates. It enables dynamic financial planning through what-if analysis and continuous forecast updates.

**Navigation:** Finance & Accounting → Budgeting → Rolling Forecasts / Scenarios / Templates

## Rolling Forecasts

### What is a Rolling Forecast?

A rolling forecast extends beyond the traditional annual budget by continuously projecting financial performance over a fixed horizon (e.g., 12 or 18 months). As each month completes, the forecast rolls forward, always looking ahead the same number of periods.

### Creating a Rolling Forecast

1. Navigate to **Rolling Forecasts** and click **New Forecast**
2. Enter a **Forecast Name** and optional description
3. Select the **Source Budget** to base the forecast on
4. Set the **Forecast Horizon** (number of forward periods)
5. Choose a **Sharing Level** (private, department, organization-wide)
6. Click **Create**

### Editing Forecast Lines

1. Open a forecast to view its line items (inherited from the source budget)
2. Adjust amounts for each period based on latest information:
   * Updated revenue projections
   * Known expense changes
   * New initiatives or cuts
3. Changes are saved automatically

### Version History

Every time you save significant changes, a **version snapshot** is created:

* View all versions in the **Version History** tab
* Each version captures the complete line\_snapshot at that point in time
* Compare versions to see how the forecast evolved
* Versions track who made changes and when

### Forecast Statuses

| Status       | Description                            |
| ------------ | -------------------------------------- |
| **Draft**    | Work in progress, not yet shared       |
| **Active**   | Current working forecast               |
| **Archived** | Historical reference, no longer active |

## Budget Scenarios

### What are Budget Scenarios?

Budget scenarios let you create alternative versions of a budget to model different outcomes. Common scenario types include best case, worst case, and custom projections.

### Creating a Scenario

1. Navigate to **Budget Scenarios** and click **New Scenario**
2. Enter a **Scenario Name** and description
3. Select the **Base Budget** to start from
4. Choose a **Scenario Type**:
   * **Best Case** – Optimistic projections
   * **Worst Case** – Conservative/defensive projections
   * **Custom** – Any other modeling purpose
5. Click **Create**

### Editing Scenario Lines

The scenario inherits all lines from the base budget. Modify them to reflect the scenario's assumptions:

1. Open the scenario detail page
2. Use the **Line Editor** to adjust amounts by account, fund, department, or program
3. Each line shows the **base budget amount** alongside your **scenario amount** for easy comparison
4. Add notes to document your assumptions

### Comparing Scenarios

The **Scenario Comparison View** shows scenarios side by side:

1. Select 2+ scenarios to compare
2. View differences by account, department, or program
3. Variance columns show absolute and percentage differences
4. Use this to present options to leadership for budget decisions

### Scenario Statuses

| Status       | Description                  |
| ------------ | ---------------------------- |
| **Draft**    | Being developed              |
| **Active**   | Approved for use in planning |
| **Archived** | No longer in active use      |

## Budget Templates

### What are Budget Templates?

Budget templates provide reusable starting points for creating budgets. They define a standard set of line items, accounts, and dimensional coding that can be applied to new budgets.

### Creating a Template

1. Navigate to **Budget Templates** and click **New Template**
2. Enter a **Template Name** and description
3. Define **template lines**:
   * GL Account assignments
   * Default amounts (optional – can be zero as placeholders)
   * Fund, department, and program coding
4. Save the template

### Template Library

The **Template Library** provides a browsable collection of templates:

* **Organization templates** – Created by your team
* Filter by category or search by name
* Preview template structure before applying
* Click **Use Template** to create a new budget from a template

### Applying a Template

1. When creating a new budget, choose **Start from Template**
2. Select a template from the library
3. The new budget is pre-populated with the template's line items
4. Adjust amounts and coding as needed for the specific fiscal period

## Tips & Best Practices

* **Update forecasts monthly** – Roll forward after each month-end close
* **Limit active scenarios** – 3-4 scenarios per budget cycle is optimal
* **Document assumptions** – Use notes on scenario lines to explain changes
* **Archive old versions** – Keep the workspace clean by archiving completed forecasts
* **Standardize with templates** – Create templates for recurring budget patterns (e.g., department operating budgets, grant budgets)
* **Use comparison views** – Present scenario comparisons to stakeholders for informed decision-making

## Glossary

| Term                 | Definition                                                       |
| -------------------- | ---------------------------------------------------------------- |
| **Rolling Forecast** | A continuously updated financial projection over a fixed horizon |
| **Forecast Horizon** | The number of forward periods the forecast covers                |
| **Version Snapshot** | A point-in-time capture of all forecast line amounts             |
| **Budget Scenario**  | An alternative budget model exploring different assumptions      |
| **Base Budget**      | The approved budget a scenario or forecast is derived from       |
| **Template**         | A reusable budget structure with predefined accounts and coding  |