What is unfavorable variance in SAP (EPM-BPC - Business Planning and Consolidation)?

SAP Term: unfavorable variance

• Component: EPM-BPC

• Component Name: Business Planning and Consolidation

• Description: A KPI definition that determines the unfavorable variance for a KPI.

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• Key Concepts: 
  Unfavorable variance is a term used in SAP EPM-BPC Business Planning and Consolidation (BPC) to describe the difference between the actual and budgeted amounts for a given period. It is calculated by subtracting the budgeted amount from the actual amount. If the result is negative, it is considered an unfavorable variance. 
  
  How to use it: 
  Unfavorable variance can be used to identify areas of financial performance that are not meeting expectations. It can be used to compare actual results to budgeted amounts, and to identify areas where corrective action may be needed. It can also be used to track trends over time, and to identify areas where additional resources may be needed. 
  
  Tips & Tricks: 
  When analyzing unfavorable variance, it is important to consider both the magnitude of the variance and the reasons behind it. It is also important to consider other factors such as changes in market conditions or changes in business strategy that may have impacted the results. 
  
  Related Information: 
  Unfavorable variance can be used in conjunction with other metrics such as return on investment (ROI) or cost of goods sold (COGS) to gain a better understanding of financial performance. It can also be used in conjunction with other financial analysis tools such as break-even analysis or cash flow analysis.