How do I eliminate the manual work of exporting data to Excel or hunting through static ERP reports to identify financial fluctuations? Continue reading to answer this question.
AI Variance Analysis allows you to identify and investigate fluctuations between financial results across different time periods. Integrated directly with your FloQast platform through the Financial Data Model (FDM), it uses customizable rules to define exactly which accounts and thresholds matter to your business, eliminating the need to export data to Excel or hunt through static ERP reports, and allowing you to move directly from data detection to decision-making.
Follow these steps to access the AI Variance module:
- Open the Reporting application.
- Choose AI Variance Analysis from the menu.
- On the AI Variance Summary page, pick your preferred date to view the relevant data.
NOTE: AI Variance Analysis is available to NetSuite customers with SuiteAnalytics and Workday customers. Other ERP configurations are on the roadmap.
What can I do with AI Variance Analysis?
- Rule-Based Methodology — Define custom rules and materiality thresholds (e.g., "Always explain amounts above $10,000") so the system automatically flags only the exceptions that matter.
- AI-Powered Detection & Explanations — The system automatically identifies material variances and can draft transaction-based explanations for you, significantly reducing manual effort.
- Multi-Dimensional Analysis — Analyze data beyond the basic chart of accounts by grouping and filtering by department, subsidiary, or custom accounting books.
- Automatic Data Comparison — Compare multiple periods — such as month-over-month (MoM) and quarter-over-quarter (QoQ) — within a single view.
- Transaction Drill-Through — Select any value in a report to view the underlying source transactions for full transparency.
- Flexible Currency Reporting — Perform analysis at the subsidiary level in functional currency or at a consolidated level in the parent's reporting currency.
Best Practices
- Establish Clear Rule Collections — Group rules by process or comparison period (e.g., "Monthly Revenue Analysis") to keep your workspace organized.
- Optimize Your Start Dates — Set rule collections to begin on the last day of your close (or the day before) to ensure all journal entries are posted before analysis begins.
- Use Descriptive Naming — Include the period type (Month, Quarter, Year) in your rule collection names for quick identification.
- Leverage Focus Mode — Use Focus Mode to review transaction-level details, trend graphs, and notes in a single centralized view while editing explanations.
Frequently Asked Questions
Q: What is the difference between AI Variance Analysis and "Classic" Variance?
A: Classic Variance is typically report-based and often requires multiple distinct reports to compare different periods (like MoM vs. QoQ). AI Variance Analysis is built on a rule-based system that allows for more flexible, in-depth investigations and multi-period comparisons in one place.
Q: How do notifications work?
A: AI Variance Analysis features automated email notifications that alert preparers of newly material fluctuations and notify reviewers when items are ready for sign-off, eliminating the need for manual status checks.
If you have additional questions, contact support@floqast.com.
🎓Ready to learn more? the interactive Centralizing and Configuring Financial Data in FloQast FDM course on FloQademy. It is CPE-eligible through the FloQast AI Variance Analysis & Reporting program.