What is automated variance analysis in SAP EPM-BPC - Business Planning and Consolidation?

SAP Term: automated variance analysis

• Component: EPM-BPC

• Component Name: Business Planning and Consolidation

• Description: A feature that allows the user to quickly determine their business performance, through the use of four out-of-the-box algorithms: root cause analysis, child performance, status indicator analysis, or contribution analysis. Based on the analysis type, the system searches the database to find the most relevant results.

Smart SAP Assistant

• Key Concepts: 
  Automated variance analysis is a feature of SAP EPM-BPC Business Planning and Consolidation (BPC) that allows users to quickly and accurately compare actual financial results to budgeted or forecasted results. This analysis helps users identify and analyze variances between the two sets of data, allowing them to make informed decisions about their business. 
  
  How to use it: 
  To use automated variance analysis in SAP BPC, users must first create a budget or forecast. Once the budget or forecast is created, users can then compare it to actual financial results. The automated variance analysis feature will then generate a report that shows the differences between the two sets of data. This report can be used to identify areas where actual results differ from budgeted or forecasted results, allowing users to take corrective action if necessary. 
  
  Tips & Tricks: 
  When using automated variance analysis in SAP BPC, it is important to ensure that the budget or forecast is accurate and up-to-date. This will ensure that the report generated by the automated variance analysis feature is as accurate as possible. Additionally, it is important to review the report generated by the automated variance analysis feature regularly in order to identify any potential issues or discrepancies between actual and budgeted/forecasted results. 
  
  Related Information: 
  For more information on automated variance analysis in SAP BPC, please refer to the official SAP documentation at https://help.sap.com/viewer/product/SAP_EPM_BPC/10_0/en-US.