Variances - Revision history

Nic at 04:30, 23 August 2013

2013-08-23T04:30:10Z

← Older revision		Revision as of 23:30, 22 August 2013
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	In a number of BudgetLink reports, variances between Actual and Budget values are calculated. There are two types of variance calculations: Standard and Impact. The Standard variance calculation is used in MYOB and it is the same for all account types (Actual - Budget). The Impact variance calculation is the default used in BudgetLink reports and it differs for account types such that variances that have a negative impact on the business are displayed as negative values and those with a positive impact are displayed as positive values. The Impact variance calculation by account type is shown below.		In a number of BudgetLink reports, variances between Actual and Budget values are calculated. There are two types of variance calculations: Standard and Impact. The Standard variance calculation is used in MYOB and it is the same for all account types (Actual - Budget). The Impact variance calculation is the default used in BudgetLink reports and it differs for account types such that variances that have a negative impact on the business are displayed as negative values and those with a positive impact are displayed as positive values. The Impact variance calculation by account type is shown below.


			[[File:VariancesExample.png\|400px\|thumb\|right\|Variances Example]]

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	The example shows how these formulas are applied in a Profit and Loss report.		The example shows how these formulas are applied in a Profit and Loss report.

	~~[[File:VariancesExample.png\|300px\|thumb\|right\|Variances Example]]~~

	For an Income account, if the Actual value is greater than the Budget value, then the Variance is calculated as a positive as earnings were higher than expected and this has a positive impact on the business.		For an Income account, if the Actual value is greater than the Budget value, then the Variance is calculated as a positive as earnings were higher than expected and this has a positive impact on the business.

Nic at 04:29, 23 August 2013

2013-08-23T04:29:42Z

← Older revision		Revision as of 23:29, 22 August 2013
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	~~Calculation of Variances~~

	In a number of BudgetLink reports, variances between Actual and Budget values are calculated. There are two types of variance calculations: Standard and Impact. The Standard variance calculation is used in MYOB and it is the same for all account types (Actual - Budget). The Impact variance calculation is the default used in BudgetLink reports and it differs for account types such that variances that have a negative impact on the business are displayed as negative values and those with a positive impact are displayed as positive values. The Impact variance calculation by account type is shown below.		In a number of BudgetLink reports, variances between Actual and Budget values are calculated. There are two types of variance calculations: Standard and Impact. The Standard variance calculation is used in MYOB and it is the same for all account types (Actual - Budget). The Impact variance calculation is the default used in BudgetLink reports and it differs for account types such that variances that have a negative impact on the business are displayed as negative values and those with a positive impact are displayed as positive values. The Impact variance calculation by account type is shown below.


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	\|}		\|}

			The example shows how these formulas are applied in a Profit and Loss report.

	~~The example below shows how these formulas are applied in a Profit and Loss report~~.		[[File:VariancesExample.png\|300px\|thumb\|right\|Variances Example]]

	For an Income account, if the Actual value is greater than the Budget value, then the Variance is calculated as a positive as earnings were higher than expected and this has a positive impact on the business. However, for a Cost of Sales account, if the Actual value is greater than the Budget value, then the Variance is calculated as a negative as the cost was greater than expected and this has a negative impact on the business.		For an Income account, if the Actual value is greater than the Budget value, then the Variance is calculated as a positive as earnings were higher than expected and this has a positive impact on the business.

			However, for a Cost of Sales account, if the Actual value is greater than the Budget value, then the Variance is calculated as a negative as the cost was greater than expected and this has a negative impact on the business.

	If you would like to change the calculation from Impact to Standard in your BudgetLink reports, please contact Accounting Addons for more information.		If you would like to change the calculation from Impact to Standard in your BudgetLink reports, please contact Accounting Addons for more information.
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Nic at 04:27, 23 August 2013

2013-08-23T04:27:12Z

← Older revision		Revision as of 23:27, 22 August 2013
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	\|Asset \|\| Actual - Budget \|\| (Actual - Budget) / Budget		\|Asset \|\| Actual - Budget \|\| (Actual - Budget) / Budget
	\|-		\|-
	\|Liability \| Budget - Actual \| (Budget - Actual) / Budget		\|Liability \|\| Budget - Actual \|\| (Budget - Actual) / Budget
	\|-		\|-
	\|Equity \| Budget - Actual \| (Budget - Actual) / Budget		\|Equity \|\| Budget - Actual \|\| (Budget - Actual) / Budget
	\|-		\|-
	\|Income \| Actual - Budget \| (Actual - Budget) / Budget		\|Income \|\| Actual - Budget \|\| (Actual - Budget) / Budget
	\|-		\|-
	\|Cost of Sales \| Budget - Actual \| (Budget - Actual) / Budget		\|Cost of Sales \|\| Budget - Actual \|\| (Budget - Actual) / Budget
	\|-		\|-
	\|Expenses \| Budget - Actual \| (Budget - Actual) / Budget		\|Expenses \|\| Budget - Actual \|\| (Budget - Actual) / Budget
	\|-		\|-
	\|Other Income \| Actual - Budget \| (Actual - Budget) / Budget		\|Other Income \|\| Actual - Budget \|\| (Actual - Budget) / Budget
	\|-		\|-
	\|Other Expenses \| Budget - Actual \| (Budget - Actual) / Budget		\|Other Expenses \|\| Budget - Actual \|\| (Budget - Actual) / Budget
	\|}		\|}

Nic at 04:26, 23 August 2013

2013-08-23T04:26:39Z

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 |Asset || Actual - Budget || (Actual - Budget) / Budget
 |-
 |}
 The example below shows how these formulas are applied in a Profit and Loss report.

Nic at 04:23, 23 August 2013

2013-08-23T04:23:07Z

← Older revision		Revision as of 23:23, 22 August 2013
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	{\|		{\| class="wikitable"
	\|+ Variances Calculations		\|+ Variances Calculations
	!Account Type !! Value Formula !! Percentage Formula		!Account Type !! Value Formula !! Percentage Formula

Nic at 04:22, 23 August 2013

2013-08-23T04:22:15Z

← Older revision		Revision as of 23:22, 22 August 2013
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	{\|		{\|
	\|+ Account Type \|\| Value Formula \|\| Percentage Formula		\|+ Variances Calculations
			!Account Type !! Value Formula !! Percentage Formula
	\|-		\|-
	\|Asset \|\| Actual - Budget \|\| (Actual - Budget) / Budget		\|Asset \|\| Actual - Budget \|\| (Actual - Budget) / Budget

Nic: Created page with "Calculation of Variances In a number of BudgetLink reports, variances between Actual and Budget values are calculated. There are two types of variance calculations: Standard ..."

2013-08-23T04:21:11Z

Created page with "Calculation of Variances In a number of BudgetLink reports, variances between Actual and Budget values are calculated. There are two types of variance calculations: Standard ..."

New page

Calculation of Variances

In a number of BudgetLink reports, variances between Actual and Budget values are calculated. There are two types of variance calculations: Standard and Impact. The Standard variance calculation is used in MYOB and it is the same for all account types (Actual - Budget). The Impact variance calculation is the default used in BudgetLink reports and it differs for account types such that variances that have a negative impact on the business are displayed as negative values and those with a positive impact are displayed as positive values. The Impact variance calculation by account type is shown below.

{|
|+ Account Type || Value Formula || Percentage Formula
|-
|Asset || Actual - Budget || (Actual - Budget) / Budget
|-
|}

Liability Budget - Actual (Budget - Actual) / Budget
Equity Budget - Actual (Budget - Actual) / Budget
Income Actual - Budget (Actual - Budget) / Budget
Cost of Sales Budget - Actual (Budget - Actual) / Budget
Expenses Budget - Actual (Budget - Actual) / Budget
Other Income Actual - Budget (Actual - Budget) / Budget
Other Expenses Budget - Actual (Budget - Actual) / Budget

The example below shows how these formulas are applied in a Profit and Loss report.

For an Income account, if the Actual value is greater than the Budget value, then the Variance is calculated as a positive as earnings were higher than expected and this has a positive impact on the business. However, for a Cost of Sales account, if the Actual value is greater than the Budget value, then the Variance is calculated as a negative as the cost was greater than expected and this has a negative impact on the business.
If you would like to change the calculation from Impact to Standard in your BudgetLink reports, please contact Accounting Addons for more information.
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