What is moving average in SAP SBO - SAP Business One?

SAP Term: moving average

• Component: SBO

• Component Name: SAP Business One

• Description: The average of commodity prices, constructed on a fixed period and showing trends for the latest interval. When a new price is included in the calculation, the oldest price is dropped from the average.

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• Key Concepts: 
  Moving average is a forecasting technique used in SAP Business One (SBO) to predict future demand for a product or service. It is based on the average of past demand over a certain period of time. This technique is useful for predicting future demand and can help businesses plan their inventory and production accordingly. 
  
  How to use it: 
  In SBO, moving average can be used to forecast future demand by taking the average of past demand over a certain period of time. To do this, the user must first select the product or service they want to forecast and then enter the number of periods they want to use for the calculation. The user can then view the forecasted demand for the product or service. 
  
  Tips & Tricks: 
  When using moving average in SBO, it is important to consider the seasonality of the product or service being forecasted. Seasonal products or services may require more frequent calculations in order to accurately predict future demand. Additionally, it is important to consider any external factors that may affect future demand, such as changes in market conditions or customer preferences. 
  
  Related Information: 
  SAP Business One also offers other forecasting techniques such as exponential smoothing and regression analysis. These techniques can be used in combination with moving average to provide more accurate forecasts. Additionally, SAP Business One offers a variety of reporting tools that can be used to analyze past and present data in order to make more informed decisions about future demand.