I am working on a spreadsheet that shows: Actual, Budget and Last Year numbers. Then I am showing the Variance in $ and then in %.
The typical (F29-G29)/G29 formula does not work on a consistent basis. F=Actual and G=Budget. This formula works if both my actual and my budget are "Positive Numbers"
Example (Revenue)
Like Actual=$75 and Budget=$55
The Variance would be FAVORABLE because we bought in MORE revenue than we budgeted for
Rev
Act Bud Var
75 55 36%
(F58-G58)/G58
Exp
Act Bud Var
75 55 -36%
(G62-F62)/G62
BUT…now if I have either a NEGATIVE Budget or a NEGATIVE Actual…or BOTH NEGATIVES –
What formula can I use to show the REAL Variance and its meaning (favorable or Unfavorable)??
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