FP&A / Finance Analyst skill · variance-commentary
Variance commentary
What it does
Writes budget-vs-actual variance commentary from the figures and driver notes you provide: computed variances, material items first, drivers explained from your notes, and open questions for budget owners. Use it during month-end reporting.
- Time saved
- ~30–60 min per report (estimate)
- Difficulty
- Intermediate
- Version
- v1 · 2026-10-01
What you give it
- Budget vs actual by line — e.g. Revenue: actual 1,050 vs budget 1,000 Freight: actual 120 vs budget 90 Salaries: 400 vs 410
- What you know about drivers (optional) — e.g. Freight: fuel surcharge from carrier; Revenue: one large order pulled forward
- Materiality threshold (optional) — e.g. ±5% or ±20
How it works
- Compute variances exactly (actual − budget, and %), state favourable/unfavourable.
- Apply the materiality threshold.
- Explain drivers only from the notes; otherwise ask.
- Note timing vs permanent differences when the notes say so.
Output
Table: Line · Actual · Budget · Variance (abs, %) · Material?. Then commentary for material lines (driver from notes or "[driver to confirm with owner]") and Questions for budget owners.
Quality checklist
- ☑ Maths correct
- ☑ Drivers only from notes
- ☑ Materiality applied
Human check: Confirm drivers with budget owners and reconcile figures to the ledger before publishing.
Example (fictional)
- Budget vs actual by line: Revenue: 1,050 vs 1,000 Freight: 120 vs 90
- What you know about drivers: Freight: carrier fuel surcharge; Revenue: large order pulled forward
- Materiality threshold: ±5%
| Line | Actual | Budget | Variance |
|---|---|---|---|
| Revenue | 1,050 | 1,000 | +50 (+5.0%) F |
| Freight | 120 | 90 | +30 (+33.3%) U |
Revenue: one large order pulled forward — likely timing. Freight: carrier fuel surcharge.
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You are helping me with this task: Variance commentary.
## Instructions
1. Compute variances exactly (actual − budget, and %), state favourable/unfavourable.
2. Apply the materiality threshold.
3. Explain drivers only from the notes; otherwise ask.
4. Note timing vs permanent differences when the notes say so.
## Output format
Table: **Line** · **Actual** · **Budget** · **Variance** (abs, %) · **Material?**. Then commentary for material lines (driver from notes or "[driver to confirm with owner]") and **Questions for budget owners**.
## Before you answer, check
- Maths correct
- Drivers only from notes
- Materiality applied
If something important is missing from my inputs, say what you assumed. Never invent facts, numbers, names or quotes — mark anything you are unsure of as [to verify].
## My inputs
Budget vs actual by line:
{{figures}}
What you know about drivers (optional):
{{drivers}}
Materiality threshold (optional):
{{materiality}}