Write notes in reports where variances are shown to explain the variance

Description

This functionality allows users to provide context or explanations for deviations or differences observed between expected and actual results. It not only enhances data interpretation and decision-making processes but also facilitates better collaboration and communication among various departments within an organization.

Example Use Case

Scenario: A global manufacturing company uses CPM software for financial performance tracking. In their monthly financial report, significant variances are observed between budgeted and actual expenses for their European operations.

Solution: Using the note-writing feature, the finance team annotates these variances with notes explaining causes such as increased freight costs due to logistical disruptions or higher raw material prices. These notes help other departments, including management, to understand reasons behind such variances, facilitating data-driven decision making.

Considerations

CPM tools allow notes to be included near variances in one of two ways:

• In the cell that shows the variance
• Separate column specifically for notes

It is not always practical to have a separate column, especially when a report already contains multiple Budget/Actual columns and variances. Adding another column to the mix could make the report unwieldy.

If the tool provides cell validation, it should also allow a notes cell to be required should the variance deviate from an expected norm. It may also color-code the cell to indicate that an explanation is required, and not allow the user to move on until a note is entered.

Bonus points if the cell notes allow a message string where multiple parties leave notes and can reply to notes.

Questions to Ask a Vendor

• Entering Notes: How easy is it to add, modify, or delete annotations for specific variances? Where do notes go - on the budget, actual, or variance cells?
• Cell Validation: Can the system force a user to enter data to explain a variance? If not, can it at least color code it to indicate that we need an explanation?
• Note Flow: Do the variance notes flow to any sort of report showing all notes in a budget version?