Overview

The process helps to those who are responsible for the financial controlling to understand the reasons of plan / actual variances, to return the feedback and initiate corrective actions.

Plan / actual variance analysis is a part of financial controlling procedure. During the plan / actual variance analysis process all variances are determined, reasons are identified.

Not only the standard reports P&L, CF, BS, CAPEX is applicable for the variance analysis , but also other specific financial reports.

There are some key requirements for the reports:

  • both scenarious: Actual and planning one - must be included in the system report structure,
  • month-closing procedures must be completed,
  • translation rules of actual data into bubgeting master data - must be maintained.

As a result of the process, all variances between planned and actual finanacial statements are determined, reasons are identified.

Perform plan / actual variance analysis flowchart

Perform plan actual variance analysis

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Paths

Path

Budgeting and planning → Budgets → Budgeting reports

In-app link EN code

e1cib/list/CommonForm.BudgetingReports

In-app link RU code

e1cib/list/ОбщаяКоманда.БюджетныеОтчеты

How to identify plan / actual variancies in P&L, CF, BS, CAPEX by companies and business units

1. Go to the Budgeting reports list.

2. Find the required report, select it and Generate.

3. In the form of report specify the Period, Currency, Companies, Business units filters.

4. Select the Effective date and Generate the report.

5. Review the fugures of the Actual scenario, check if it correlates with the month-closing figures.


Note

If not - translation rules of actual data must be maintained.

6. Save the reports as files (.xlsx or .docx is recommended). Calculate the variancies between figures of the actual scenario and the scenario related to master plan.

How to perform variancies analisys

1. Repeat the same steps for the supporting finanacial reports (financial statements notes) that help to breakdown financial statements.

2. Save the reports as files (.xlsx or .docx is recommended). Perform the financial analisys to find the reasons of the deviations. Leave relevant comments in the files.

3. Provide the feedback with analysis results to the management.

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