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2 min demo: Variance Analysis Reporting


Watch this video to investigate in variance analysis between budget and actuals or any other scenario. Learn how to dissect your variance into operational versus currency impact leveraging constant FX rate conversion capabilities, with further breakout of the operational variance due to price or volume changes.


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Transcript

With amplified FX rate volatility the variance between budget and actuals is increasingly skewed due to foreign exchange translation impact.

In CCH Tagetik, being a multi-currency system, keeping that FX variance separated from pure operational variance is important to us, to give you a more accurate pulse on your business.

With a single click let's see how easy it is to neutralize that FX translation impact, using our standard reporting functionality with on the fly currency conversion capabilities.

Now, in this example we are taking a look at an annual P&L; statement to compare our 2017 budget numbers to the 2017 actual numbers that just came in.

Now, in this particular case, we do not have any currency rates effect, this is because we're reporting in US dollars for our corporate USA entity, for which the functional currency assigned at the entity level is also US dollars, hence no currency rates effect.

But we have identified our pure operational variance in CCH Tagetik, we can always do some further investigation by leveraging our analysis capabilities or simply by clicking on the number to breakout my variance and revenue, in this example, into variance coming from units, variance in price or both, as an example of 'Product 3' where I'm seeing a price increase of $50 which could have contributed to my negative variance in units of $946.

Now, if we needed to report in a different currency, I can quickly switch my view to Euros for example and have CCH Tagetik perform all the currency conversion on the fly, in-memory and run a constant currency analysis by converting 2017 actuals numbers to Euros, using one constant 2017 budget FX rate, so that we can start comparing apples to apples.

Now using a simple math we can isolate the currency rate effect and identify our pure operational variance in Euros.

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