The Variance Analysis Integration with Reconciliations feature brings the Variance Analysis module into the mainstream reconciliation process by connecting your Actual to Actual Variance Analysis Reports and your Reconciliations. It is currently available for NetSuite and Intacct clients with the Variance Analysis module enabled and have added an Actuals to Actuals Month-over-Month Variance Analysis Report.
This feature will highlight all material fluctuations in the Month-over-Month Variance Analysis Report directly on the Reconciliations and Folders pages in FloQast. Anytime you refresh your reconciliations, FloQast will determine the month-over-month fluctuation amount for each GL account. The materiality threshold that you have set in your Variance Analysis Settings is taken into consideration, and then a check mark appears next to each reconciliation to indicate whether a fluctuation was material or immaterial.
A material fluctuation will be indicated by a red check mark, whereas an immaterial fluctuation will be indicated by a green check mark.
A green check mark will flash three times before disappearing since no explanation is necessary, and therefore there is no action item. When a red check mark appears, it will remain visibly static next to the reconciliation. This indicates a comment on your Variance Analysis Report is required to explain this month-over-month variance. Rather than navigating away from your current page to load the Variance Analysis tab, you can now simply click on the red check mark to launch an explanation window. This pop-out will include:
- The current month's value
- The prior month's value
- $ change month-over-month
- % change month-over-month
- A comment box where you can enter your explanation and Save it directly to your Flux Report
FloQast Best Practice: The Preparer and/or Reviewer of a reconciliation are typically responsible for leaving the Variance Analysis explanation for that particular GL account. If you are assigned to reconciliation, we encourage you to leave your Variance Analysis explanation immediately upon completing your sign-off, just like the GIF above! This ensures that the work done to prepare the reconciliation is fresh in your mind, and you won't need to circle back to review this account's monthly activity when it comes time to prepare your Flux Report.
Once an explanation has been added, the red check mark becomes gray and remains visible next to the reconciliation. You may click on the gray check mark at any time to view, edit, or delete the comment from either the Reconciliations or Folders tabs.
Of course, this explanation will also be visible on the Variance Analysis tab for the particular account!
Please Note: The Variance Analysis tab may be labeled as "Flux Analysis" for customers without Budget-to-Actuals enabled.