1. Administering Financial Consolidation and Close
  2. Working with Dimensions
  3. Defining Accounts
  4. Account Types and Variance Reporting

Account Types and Variance Reporting

An account’s variance reporting property determines whether it is treated as an expense when used in member formulas:

  • Expense: The actual value is subtracted from the budgeted value to determine the variance.

  • Non-Expense: The budgeted value is subtracted from the actual value to determine the variance.

Examples:

  • When you are budgeting expenses for a time period, the actual expenses should be less than the budget. When actual expenses are greater than budget expenses, the variance is negative. For example, if budgeted expenses are $100, and actual expenses are $110, the variance is -10.

  • When you are budgeting nonexpense items, such as sales, the actual sales should be more than the budget. When actual sales are less than budget, the variance is negative. For example, if budgeted sales were $100, and actual sales were $110, the variance is 10.