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

SAP Term: variance

• Component: EPM-BPC

• Component Name: Business Planning and Consolidation

• Description: The difference between two data values, such as time periods or categories.

Smart SAP Assistant

• Key Concepts: 
  Variance is a measure of the difference between actual and expected results. In SAP EPM-BPC Business Planning and Consolidation, variance is used to compare actual results to budgeted or forecasted results. Variance can be calculated for any type of financial or operational metric, such as revenue, expenses, profits, or customer satisfaction.
  
  How to use it: 
  In SAP EPM-BPC Business Planning and Consolidation, variance can be calculated by entering the actual and expected values into the system. The system will then calculate the variance and display it in a graphical format. This allows users to quickly identify areas where actual results differ from expectations.
  
  Tips & Tricks: 
  When calculating variance in SAP EPM-BPC Business Planning and Consolidation, it is important to ensure that the actual and expected values are entered correctly. This will ensure that the variance calculation is accurate and meaningful. Additionally, it is important to consider other factors that may affect the variance calculation, such as changes in market conditions or changes in the company’s operations.
  
  Related Information: 
  Variance analysis is a key component of financial planning and analysis (FP&A). Variance analysis can be used to identify areas of potential improvement in a company’s operations or financial performance. Additionally, variance analysis can be used to identify trends over time or compare performance across different business units or locations.