Create report sections that display differences between two sources, such as Budget versus Actual.
Being able to calculate variances across different accounts and departments, taking into account revenue or expense favorability, is crucial for efficiently evaluating financial or operational performance across actuals and various plan scenarios. Utilize Variance calculations in report sections to easily and quickly compare imported accounting actuals to how you thought the business would perform per your budget or forecast plans.
Variances between two Sources per each Report Group can be added to most Report types. To begin your Variance Analysis:
- Navigate to the Report area
- Select the desired Report
- Select Edit Columns from the right side of the screen
- Verify there are at least 2 Sources selected - Primary Source and Comparison Source #1 (checked as ON)
- Enable Variance # and/or Variance % (check ON)
- Choose the right Variance # and $ configuration
Variance # calculation can be configured in multiple ways (for 3 Sources selected):
- Primary Source less Comparison Source #1
- Primary Source less Comparison Source #2
- Comparison Source #1 less Primary Source
- Comparison Source #1 less Comparison Source #2
- Comparison Source #2 less Primary Source
- Comparison Source #2 less Comparison Source #1
Variance % calculation can also be customized and based on one of the below formulas:
- when Variance # is maintained for Primary Source and Comparison Source #1:
- (Primary Source - Comparison Source #1) / Primary Source
- (Comparison Source #1 - Primary Source) / Comparison Source #1
- Primary Source / Comparison Source #1
- Comparison Source #1 / Primary Source
- when Variance # is maintained for Primary Source and Comparison Source #2:
- (Primary Source - Comparison Source #2) / Primary Source
- (Comparison Source #2 - Primary Source) / Comparison Source #2
- Primary Source / Comparison Source #2
- Comparison Source #2 / Primary Source
- when Variance # is maintained for Comparison Source #1 and Comparison Source #2:
- (Comparison Source #1 - Comparison Source #2) / Comparison Source #1
- (Comparison Source #2 - Comparison Source #1) / Comparison Source #2
- Comparison Source #1 / Comparison Source #2
- Comparison Source #2 / Comparison Source #1
Variance # and % calculations can also be customized for Headcount Summary and Custom Sections by clicking on the Advanced dropdown.
An example of what a Revenue and Expenses Variance # dropdown may contain if the Primary source is 2024 Rollings Fcst of This Year and the Comparison Source 1 is Actuals of Previous Year:
- 2024 Rolling Fcst:This Year - Actuals:Previous year
- Actuals:Previous year - 2024 Rolling Fcst:This Year
An example of what a Revenue and Expenses Variance % dropdown may contain if the Primary source is 2024 Rollings Fcst of This Year and the Comparison Source 1 is Actuals of Previous Year:
- 2024 Rolling Fcst:This Year - Actuals:Previous year / 2024 Rolling Fcst:This Year
- Actuals:Previous year - 2024 Rolling Fcst:This Year / Actuals:Previous year
- 2024 Rolling Fcst:This Year / Actuals:Previous year
- Actuals:Previous year / 2024 Rolling Fcst:This Year
Highlight favorable/unfavorable variances from the % Formatting options located on the right side of the screen.
To display Favorable and Unfavorable Variances, enable them by selecting 'ON'. Afterward, you can choose the colors you would like to designate for both Favorable and Unfavorable Variances.
Apply the Variance for all Report Rows or apply Custom Selection per Report Rows. Formatting is enabled for this Report Rows where Variance values meet the Materiality Threshold set in the Variance Rules Settings.
To review, delete, modify & add Favorable Variance thresholds, go to Settings ⚙️ and select Variance Rules.
Variance Rules are set per Data Elements, instead of lines, which means that the Variance Rule can be set for whole Revenue Data Element, and not for individual lines in Revenue.
Custom Lines calculated within Custom Tables, such as Ending ARR, New ARR, CAC, and CLTV to CAC Ratio, must also be explicitly defined via the Settings ⚙️> Variance Rules.
Additional Resources: