Defining how financial variances display in reports

The application includes a financial variance formula that determines if a variance is favorable or unfavorable, using these factors:

  • The account type
  • The sign of the account type in the database
  • If the account balance is positive or negative

The business logic behind the formula is shown in this table:

Account type Favorable result Unfavorable result
Assets Increase Decrease
Liabilities Decrease Increase
Revenue Increase Decrease
Expenses Decrease Increase

An example of a favorable result is when the calculation shows a decrease in expenses. An example of an unfavorable result is when the calculation shows an increase in expenses.

The syntax of the formula is:

Financial variance = Parameter 2 - Parameter 1

In the examples of a balance sheet and profit and loss statement on the Report Display tab, Parameter 2 is the value from the 2014 column. Parameter 1 is the value from the 2015 column.

The financial variance formula is calculated on the values stored in the database, not those displayed in the report.

  1. In Financial Consolidation, select Parameterization > Group Parameterization > Global Sign Definition.
  2. Click the Report Display tab.
  3. In the Define How Variances Display in Reports section, select how to display the variance for each account type.
    The example balance sheet and profit and loss statement are adjusted to show how a report looks according to your selections.