The YTD Variance report shows a particular month and the YTD variances. This report is important if you are managing your income and expenditure carefully.
How to use the report
Typically, you'd look at the difference between your actual expenditure and income for the last month compared to the planned expenditure and income for the same month.
If you find any significant areas where your income or expenditure is over or under you'd review the year to date data. The year to date data helps you understand if the variation in your monthly data is a timing issue or are you seeing a trend emerging.
A variance in a month can be fine if it rectifies itself subsequently. Monthly variance that do not correct themselves over the year, may need further explanation.
How to create the report
Go to Reports > YTD Variance.
Select the two sets of data you want to compare.
Column A should be your main source of data.
Column B should be the data you want to compare against.
The most common application:
Column A will be your Actuals for the current year and
Column B will be your baseline plan for the current year.
Select the date range you wish to report on.
The most common application would be to have your First month set as the first month of the financial year and the Last month be the the most recent month that you have a full set of data entered into Farm Focus.
Select Payment date to include all items that have been paid within the selected timeframe OR select Accrual view to include all items that have been invoiced within the selected timeframe. Learn more about Accrual reporting here.
Select View YTD Remaining column, to understand what income you have left to earn or what you have left to spend.
Click Apply to display the report.
TIP: Farm Focus will default to the most recent month. Make sure all transactions are matched to invoices or fully coded.
Quantity columns. Quantity columns can be switched on or off by using the view icon in the top right hand corner and selecting or unselecting the checkbox. The quantity column is relevant for items such as milk solids, fertiliser, or livestock numbers purchased and sold.
GST Exclusive / GST Inclusive. Report can be viewed as GST Exclusive or GST Inclusive.
Section, category or extended code detail. Use the chevron's on the left hand side of the report to collapse or expand the report to the required level of detail. This can be useful to understand the variance at a high level or more detailed level, depending on your needs.
Filter. Use the filter icon in the top right hand corner to filter for codes, bank account or by tag. This can be useful if you want to focus on a specific part of your business.
How is the Variance calculated?
If you select the information icon on the variance column, it will give you an explanation of how the variance in Farm Focus is calculated.
Calculation = (Column A / Column B) x 100
If Column A is greater than Column B the percentage will be > 100%
If Column A is less than Column B the percentage will be < 100%
If Column A and Column B are equal, the percentage will be 100%
How to interpret the data
Column a shows main source of data.
Column b shows the data you want to compare against.
Column c shows the actual dollar variation.
Column d shows the percentage variation.
The red box (left hand side) shows the variation for the month you have selected.
The purple box (right hand side) shows the YTD variation.
The yellow box (last column) shows the YTD remaining, if you have selected this view.
Any variances that are less than $1000 will not show a percentage.
Any variances that are over 999% will be capped at 999%.
Amounts are rounded to the nearest dollar or whole number.
TIP: Utilise the settings or filter icons, so you are only viewing the data that is required.
TIP: For larger values, look at the actual dollar variation rather than the percentage variation. The percentage variation for a large income or expense may only be a few percent but it could be a significant amount of money.
Remember to check out the Variance report