What is variance in SAP FIN-FSCM-CLM - Cash and Liquidity Management?

SAP Term: variance

• Component: FIN-FSCM-CLM

• Component Name: Cash and Liquidity Management

• Description: The difference between the actual liquidity movements and the planned liquidity movements in the context of liquidity planning.

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• Key Concepts: 
  Variance in SAP Cash and Liquidity Management (CLM) is the difference between the expected and actual values of a financial transaction. It is used to measure the accuracy of a forecast or budget. Variance can be calculated for any type of financial transaction, such as cash flow, revenue, expenses, and investments. 
  
  How to use it: 
  In SAP CLM, variance is calculated by subtracting the expected value from the actual value. The result is then divided by the expected value to get the variance percentage. This percentage can be used to measure the accuracy of a forecast or budget. Variance can also be used to identify areas where improvements can be made in order to increase accuracy. 
  
  Tips & Tricks: 
  When calculating variance in SAP CLM, it is important to ensure that the expected and actual values are based on the same time period. This will ensure that the variance calculation is accurate and meaningful. Additionally, it is important to consider other factors that may affect the accuracy of a forecast or budget when calculating variance. 
  
  Related Information: 
  Variance analysis is an important tool for financial planning and budgeting in SAP CLM. It can be used to identify areas where improvements can be made in order to increase accuracy and efficiency. Additionally, variance analysis can help identify potential risks and opportunities that may not have been previously considered.