Also called Budget vs actual.
Not a rule. FP&A convention — not codified. US GAAP governs recognition, measurement and presentation, not bookkeeping mechanics. Sources
The lessons that teach this
From the free founder back-office course, taught on one company's books, with exercises to work it yourself.
- FinanceBudget vs actual › The flexed budgetNorthwind's cost of revenue against a budget restated at the revenue actually earned: a favorable total hiding an unfavorable cost per sale.5 min
- FinanceThe monthly board packNorthwind's September pack: three statements, cash and runway with their basis, the variances worth a sentence, the 13-week low point, and every metric defined.10 min
Variance, in use
Quoted from the 11 documents that use the word: what it does to an interface, in the spec's own words.
Actual, budget, variance (absolute and relative) and forecast, by period and by dimension.
The variance is always taken against the first series declared, and the readout disappears when that series is isolated away.
Scale is applied, not just labeled. header.scale of thousands or millions puts "in thousands" in the header and the caption and presents every figure, variance and hover change at that scale: divided from the exact minor units and rounded once, half away from zero, at display (presentScaled in lib/format-money).
What it is not called
Each of these means something else. Use one here and an accountant reading the product notices.
- error
- a bare plus or minus
Components that render this
These components name it in their spec, grouped and labeled exactly as the catalog shows them.
5Ledger & tables
Family spec7Dashboard & charts
Family spec11Payables (AP)
Family spec12Close, controls & consolidation
Family specAlso in Finance & planning
Defined in Lexicon. This page is generated from that document, so the two can't disagree.