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Difference between revisions of "Variances"
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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. | ||
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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. 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. | ||