Plans and variance

FP&A Analyst builds a budget or forecast for an organization, fiscal year, period and version. Plan lines identify a cost center, spend category, account, quantity, unit rate and actual amount. Calculated amount and variance fields keep planned and actual figures together. Budget vs Actual compares cost centers and drills into the lines behind a total.

• Build. FP&A Analyst sets the organization, plan type, period and version before adding cost center lines.
• Compare. Budget vs Actual opens the lines behind a cost center variance.
• Decide. Finance Approver reviews an in review plan before using Approve Plan and checking its decision and receipt.

For a software cost center that runs above plan, open Budget vs Actual and trace the variance to its plan lines. Check the selected plan version and period before explaining the movement. The plan owner can add notes and submit the plan for review. An in review plan can be approved through Approve Plan; the action records a review decision and an operation receipt.

Agree who owns actual spending data, how cost centers map to finance accounts and which plan version is current. Name the approver for the period and decide what evidence supports a material variance. Keep returned or rejected review decisions visible with reason codes so the analyst can correct the right line.

Select a plan version with a known cost center variance for the first review. Check the actual amount on each contributing line against the source maintained by Finance. Keep the plan version and fiscal year visible when discussing the variance, so reviewers compare the same period.

FP&A Analyst selects Plans Awaiting Approval and prepares a variance explanation for Finance Approver. The approver inspects the plan header, cost center lines and supporting evidence. On approval, compare the plan’s Approved state with the new review decision and operation receipt. Rehearse an invalid approval request and check that it is refused with a Skipped receipt.

After Finance Approver decides, FP&A Analyst should open Approved Plans and verify the version and organization. Follow the related decision and receipt; if an approval attempt was skipped, leave the plan for review rather than treating the attempted action as approval.

• Plans Awaiting Approval — Inspect in review plans and their cost center lines.
• Approved Plans — Compare approved versions and their planned and actual totals.
• Review Exceptions — Read Returned or Rejected decisions with their reason codes.

Use plan approval and variance to trace a version from cost center review to decision. Review the data model when mapping source identifiers and roles when assigning the people who may act.