For this we have to add one more column to our data. I have added column Data Source to the end of data table. Existing data is marked as Actual and I have added more data rows which are marked as Budget. File : Updated Data with Budget. We will separate them in our next steps. You can drag and show Budget column before the Actual.
In case you forget to select Data Source filed on PivotTablecalculated item will remain disabled. So make sure that you have selected Data Source filed before getting calculated item option. You cannot add calculated item to grouped filed.
This is due to grouping we have done in our PivotTable, you will need to ungroup all those fields before adding calculated item. PivotTable Report treats calculated item as another row. So you need to be careful while using them, avoid using total values. These can mislead you. Click here to download the pivot report example file and play with it. Actual Charts articles to get more ideas.
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Budget to Actual Variance Analysis in FP&A
Here are five of the easiest to create and cleanest budget vs. I spent three hours searching through different Excel techniques and methods on the web and picked these five for being easy to create and cleanly showing the differences between budget and actual values. When you present your consulting findings to management you want to insure you communicate clearly. These charts are invaluable for prodding us to meet our goals.
Colored markers show budget vs actual in an Excel column chart. This is the basic actual vs. You should master this one before trying any others. This is one of our most popular articles and ranks first on a couple of Google search result pages. It is quick and easy to create and people understand it naturally; the blue columns are actual values and the red markers are the budgeted or target values.
Click here to get 21 Excel budget templates and tips on creating budgets in Excel. Use color to highlight the difference in a budget vs actual Excel chart. When you want to show the variance between actual and budget target then use this Excel chart. This chart shows the difference between actual and budget targetbut with just a few mouse clicks it colors the negative values with a different color so they pop out.
Use Sparklines to show budget vs actual Excel charts within a cell. He did a great job here showing six different ways of charting actual vs. If you need column reports to show a lot of data these in-cell charts or icons allow managers to quickly see which line items are not meeting target. The variance box shows at the top of this budget vs actual Excel chart. The variance box shows at the right of this budget vs actual Excel chart.
This is a quick and easy tip that can be used with columns or bars. I think a lot of managers would like to see this. Thanks Jon. Colors show the difference in this budget vs actual Excel chart. Although Chandoo is comparing productivity of a company to the national average in this example, his technique works just as well to compare budget vs. In this example, Acme Inc. Above national average productivity produces green shading and below national average productivity produces red shading.
At the end of the same article Chandoo hints at four other ways of making similar budget vs.Get this free workbook, then enter budget forecast amounts and actual amounts. View or print the report sheets, where formulas show the year to date totals, and calculate the variance between the forecast and actuals. This example uses a simple budget -- enter forecast amounts for each month, then fill in the actual amounts at month end. There are no macros in the sample file -- the navigation buttons use hyperlinks.
In this template, there is a menu sheet, with navigation buttons and cells to enter the location name and the fiscal year start date. The buttons have hyperlinks that go to a specific sheet, and cell A1 on that sheet. Note : The Location is not used in any of the formulas -- it is for information only. On a separate worksheet, named Forecast, you'll enter the budget forecast amounts, for each month and each budget category.
You can change the category headings in column A, and insert or delete the rows in the Overhead section. There are total formulas in column O and row 25, using the SUM function. For example, the formula in cell C25 is:. If you add or delete rows in the Overhead section, make sure that all the rows are included in the SUM formulas in the Total Overhead row.
In row 27, the Net Income is calculated by subtracting the total overhead from the total revenue.
On another worksheet, named Actual, you'll enter the actual amounts, for each month and each budget category. This data entry section of the sheet is set up exactly the same as the Forecast sheet, with formulas to calculate the grand total for each category, and for each month. The only difference from the Forecast sheet is in cell A4. On this sheet, a formula checks row 11, to see how many months have revenue entries.
That count is used to calculate the current month. In this screen shot above, there are two entries in row 11, so the current month is calculated as February -- the second month in the fiscal year. The structure is the same as the Actual and Forecast sheets, with budget categories and month headings.
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A formula compares the date heading to the current date in cell A4. Here is the formula from cell CAnother area etc would be for reviewing the effectiveness of promotions where there is a comparison between actual sales figures achieved during promotion vs Baseline Sales Figures.
Main analysis would be the below diagram which segregate the effects of promotions into the respective categories.
An estimate. Sales Price Variance : The reduced margin due to the promotional markdown. Sales Volume Variance : The increase in sales due to increase in quantity sold for pdts with positive price elasticity of demand.
Cannibalization : impact on other products with negative cross elasticity of demand. Halo Effect : Opposite of Cannibalization. Impact on other products with positive cross elasticity of demand. To perform the above, there is a need to review historical records and perform the necessary filtering, averaging, and adjusting for seasonal fluctuation factors for the respective product types. Thus there is a need for a compiling tool for creating a central database ; and a reporting tool for analysis.
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Budget vs. Actual Profit Loss Report using Pivot Tables
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TimeSheet Template. Waterfall Charts for Variance Analysis. Logic of Anarchism. Logic of Capitalism. Logic of Freedom. Purpose for Self-sufficiency.Whether it is daily life thing or any day at work, we are always comparing to see whats good and what is not so good. Whenever, whatever and whoever is deciding, you got to have the variance report to better understand the situation and what control actions are needed.
Not much a of a fan like this… right? Lets face it! That is why colors, charts and mix of other things are used. Following are 10 techniques to take variance analysis beyond simple numbers and percentages. Got a question? Contact details are here View Contents. Simplest of all and very formal too. Putting numbers in brackets make it much easier on eyes to separate the good from bad.
This is how to do it:. Lets change the code as following and see what it does:. See we are adding it only to positive number and zero portion of the code.
This will give positive numbers in blue color, negative numbers in red and 0 will remain default color. This code will show positive numbers in blue and negative numbers in brackets with red color while keeping the column aligned nicely. So what we did is basically add color codes in square brackets for each of the positive and negative number portion of the code. You can use other specific color codes as well or apply a color only to negative or positive number.
The basic trick is to input character code using number pad while holding down the ALT key on the keyboard. Go to custom and remove anything from type input bar. Let go of ALT key and an arrow up will be inserted!
Same goes for negative number but this time instead of 3 and 0, press 3 and 1 and it will insert an arrow down. This is done by adding one additional element which is esterisk. So the structure will be as following:. As you can see we are including only esterisk symbol before the space character to the same code discussed earlier. Now we can put a formula to color the cells with negative numbers with a simple formula like this one:. Click format button and select the color of cell you desire and make other formatting related changes if you want.
Once done click OK to apply the conditional formatting. We saw how to use arrows to differential positive and negative figures using custom number formatting in method 3 above, but you can do very similar thing using conditional formatting as well.Most companies create plans and budgets to establish benchmarks for future performance in sales, production, operations, labor, etc. The starting point of these plans and budget are usually estimated cost and revenue figures.
The goal is to meet these budgets, but as with all goals - they are not always met. Managers use variance analysis to track the actual performance against these goals. If this analysis is not performed afterwards, then setting budgets is useless. In other words: after a period i.
Variance is defined as the difference between the actual values costs, revenue, head count, An example of favorable variance is when actual total costs are lower than planned total costs.
An example of adverse variance is when actual revenue is lower than planned. Note : not all adverse variance is bad and not all favorable variance is good! For example: a variance analysis might show higher production costs than planned adverse variance. However, a deeper look reveals that the higher costs are a direct consequence of significantly higher sales favorable variance.
There are a couple of different ways to perform variance analysis. Excel spreadsheets are still the most widely used tool for it, so we'll use them in our examples as well.
Here are three examples of variance reports :. In this most common example you'd have the budget values in one column, the actual values in another column and the variance in the third column. Add some additional columns for good measure, spice it up with some color and you soon end up with an illegible mess like this:.
A much better way to display the variances is using the plus-minus variance charts. Following this advice, we can use Zebra BI charts to present the above data in this way:.
Every variance should provoke questions. Why did we perform poorly in Western Europe and Hungary? Is this negative variance a change in plans, an execution failure, an advertizing campaign gone wrong, a certain move from one of the competitors or was the budget unrealistic at the start? The answers to questions like these should be written on the report itself using a couple of short comments like you see above. Without this data and without these answers, the management can't make the right decisions for the future of the company.
They will ask the question why anyway, so it's better to include the answer right from the start. Note : The data in the above report represents sales. Lower costs than planned is a good thing greenhigher costs is bad red. If we have a flat structure without subtotals a good way to compare the elements is to use integrated variance charts. They display the actual values as bars or columns while the absolute variances are integrated in the bars or columns themselves.
We can also add Zebra BI lollipop charts to display relative variances. Of course, don't forget to write a descriptive title and comments! To visualize this we use the same type of report as above, but divide it into two parts.In life we all want to be in control. Anyways we will discuss the philosophy of perception vs reality some other time. So back to our topic comparisons and making budget vs actual reports.
Excel provides is immense flexibility to make variance analysis super easy either in numerical form using conditional formatting or custom formats or in the form of variance charts. Today we are looking at yet another technique of reporting variances which is more of an in-the-cell charting. We are not going to make actual charts but it will be visually as helpful as normal charts. Its really easy to do if you know how to use REPT function. But it has quite a big role today. So lets learn it.
Budget vs Actual Variance Reports with “In the Cell Charts” in Excel
Download this workbook to help you walk through the steps discussed as under. Step 1: In a separate column make a heading of Variance. In our case it will go in cell F5. And in cell F6 put this formula and double click the fill handle to populate the formula down the whole range:. Step 2: Now that we have calculated the variances, for the sake of better understanding lets separate the negative and positive values in two columns.
These are not needed if one has a good grip on IF functions but for simplicity I will be employing helper columns. Once inserted simply close the dialogue box. Step 4: Select cell J5 and K5 and merge them together. And in cell K6 put the following formula and drag the fill handle down to fill the formula in appropriate range:.
Step 6: Now coloring part is manual as we have separate favourable and unfavourable variances from each other. Not always a negative figure is a bad thing and not always a positive figure is a good thing. So items like Revenue, Operating profit etc their positive variance is favourable so I colored them Blue whereas items like expenses their, positive variance indicate increase in cost therefore it is an unfavorable variance so I colored them Red.
So hope you have enjoyed learning a new technique as must as I enjoyed writing about it. Check out more Excel tutorials by clicking here. Excelente tutorial!!!! Como siempre muy agradecido por tus valiosos videos. Muchas gracias!