What is Sales Budget?
A sales budget is the forecast of expected sales revenue by product, customer, or region over a planning period. It is usually the starting point for the overall master budget.
How It Works
- Estimate volumes and average prices.
- Build the budget bottom-up by territory or product line.
- Use the sales budget to drive production, purchasing, and cash budgets.
Saudi Context
Saudi retailers heavily seasonalize the sales budget around Ramadan, Hajj, back-to-school, and Saudi National Day. ZATCA-aligned forecasting improves VAT planning.
Example
A Saudi retailer budgets SAR 80 million in annual sales, weighted 30% to Ramadan and the school season.