> For the complete documentation index, see [llms.txt](https://docs.drivepoint.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.drivepoint.io/using-the-web-app/reports/performance-vs.-plan/performance-vs.-plan.md).
# Performance vs. Plan
## Setup
1. If you just want to see Shopify (DTC) or Amazon (Marketplace) performance vs. plan, use the filter on the bottom right to remove the other channels
2. If you want to understand how you're pacing all the way down the P\&L and understand which channels are driving the differences, unselect the channel filter.
## How does it work?
1. We break down your DTC and Marketplace sales (like Amazon) to a daily level
2. We bring in your monthly plan and apply ratios like margin % to your actual daily revenue
3. Metrics like Operating Expenses, which aren’t tied to a channel, use the plan number directly
4. Any metric marked with a `*` means it's based on an assumption or estimate
5. We then forecast the rest of the month based on this logic
6. Finally, we calculate totals — like Operating Income — depending on whether you’re using channel-level actuals
## Detailed Explanation
This report is built through a complex, multi-step process.
1. We load in transactional data representing DTC and Marketplace (e.g. Amazon) and aggregate it to a daily level.
2. We load in every plan's monthly forecasted financial metrics for the current month and calculate ratios against the net revenue. These ratios are then applied directly to the actual net revenue that's tracked for the day. For instance, we calculate a contribution margin percentage assumed in the plan; this creates a dynamic contribution profit across each day of the month.
1. The exception to this rule is non-channel metrics like Operating Expenses where we directly use the plan's value.
2. Note: Every metric that is labeled with a **\*** is a metric that does not come directly from transactional actuals. These metrics required making an assumption, either to plan or using the ratio calculation mentioned above.
3. We forecast to the end of the month for every metric using the methodology described below in the **How do you calculate the EOM Projections Value?** FAQ below.
4. Finally, we sum up to a non-channel total for all of the channel-specific metrics, such as "Orders", and calculate the downstream metrics like "Operating Expenses" and "Operating Income" that are not channel-specific. This summation step is dependent on the selection of the **Use Channel Actuals**, which is described in the FAQ below.
## FAQ
How do you calculate the EOM Projections Values?
The entire projection functionality is based on your historical in-month cumulative growth trend for each one of these metrics. In other words, **the report uses the historical trends to create the plan projection** instead of a linear projection (month plan value / # of days).
For the high and low projection values, the prediction interval is based on a 95% confidence margin of error around the average, which is based on the standard deviation seen across time for how a month will grow (*e.g. Day 10 is 25% of total month in one month, but it's 30% of total month in another month*). The earlier in the month we are the larger this prediction interval will be given the small sample relative to the month's number of days.
What does the field "Use Channel Actuals" mean?
This field defaults to all of the transactional channels we currently fully support. If you remove one of them, the report will recalculate with the assumption that the channel you removed is now held to the plan value, meaning any deviation from plan is caused by the channel that you are still selecting in the field. For instance, if you only have "DTC Online" selected, all other channels are going to be assumed at the exact forecasted plan value.
What does "Cumulative Chart View" Mean?
The cumulative chart view shows your summed Sales performance (Day 1 + Day 2 + Day 3 + ... + ). This is a helpful view to analyze how you are pacing to your end of month plan forecast.\
The non-cumulative chart view does not sum up the daily values. Instead it shows each day as a stand-alone value (Day 1, Day 2, Day 3, ..., etc).
Why are metrics beyond "Operational Expenses" not categorized by channel?
This is because our standard SmartModel template does not break out these metrics by channel.
I currently only have AMZ connected - will the PvP still work for me?
Currently, this report works for companies that at least have a DTC channel that's updating on a daily basis.
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