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Learn how to forecast with scenarios using what-if analysis tools in Excel

The Scenario Manager is a feature in what-if analysis and you can use this to enhance your forecasting in Microsoft® Excel®.
A scenario is a set of values that Excel saves and can automatically substitute in specific cells on a worksheet. You can create and save different groups of values on a worksheet, and then switch to any of these new scenarios to view results differently.
For example: Suppose you want to create a budget but you are uncertain of your revenue, you can define different possible values for the revenue and then switch between scenarios by applying any of the what-if analysis tools.
Note: You are welcome to download the workbook to practice.
Applies To: Microsoft® Excel® 2010 and 2013.
1. Click the Projection worksheet.
2. Set up the Best Case scenario:
On the Data tab, in the Data Tools group, click what-if analysis.
Click Scenario Manager, then click Add.
Click in the scenario name text box and enter “2nd Quarter Best Case”.
Click in the Changing cells text box and select the D6:D8.
Press and hold down the Ctrl key then select D10:D11.

 Click OK.
Enter values for the 2nd Quarter Best Case.

Click OK.
3. Set up the Worst Case scenario:
Click Add.
Click in the scenario name text box and enter “2nd Quarter Worst Case”.

Click OK.
Enter values for the 2nd Quarter Worst Case.

Click OK and then Close.
4. To view the scenarios:
On the Data tab, in the Data Tools group, click what-if analysis.
Click Scenario Manager and then click 2nd Quarter Best Case and click Show, Close.
On Data tab, in the Data Tools group, click what-if analysis.
Click Scenario Manager and then click 2nd Quarter Worst Case and click Show, Close.
5. To view a scenario summary.
On the Data tab, in the Data Tools group, click what-if analysis.
Click Scenario Manager.
Click the Summary button then click OK.
As you can see, scenarios give you different views of the same data and also helps in simplifying your forecasting process.
The post Learn how to forecast with scenarios using what-if analysis tools in Excel appeared first on Sage Intelligence.

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