variance-commentary

Variance commentary flags material movements in P&L and balance sheet lines by comparing current, prior, and budget data, then generates one-sentence driver narratives explaining the underlying activity. It requires current actuals, prior actuals, and budget data for the same scope.

Driver analysis in financial variance reporting identifies the specific underlying activities causing financial movements. It generates one-sentence explanations for each flagged line, and if the driver is unclear, it returns a flag for the controller to review.

Set materiality thresholds to define which current versus prior or budget variances get flagged for commentary. Lines crossing these thresholds or sitting on an always-comment list are automatically flagged for driver narrative generation.

Variance commentary works with both P&L and balance sheet lines for management reporting and month-end close workflows. It compares current, prior, and budget data to identify drivers behind movements across financial statements.

If the underlying driver behind a variance is unclear, the system returns a designated flag for the controller to review. This ensures unexplained movements are escalated rather than generating inaccurate commentary.

Variance commentary generates a structured commentary table alongside a concise 3-5 sentence narrative summary. This output explains flagged movements and driver explanations for management reporting and month-end close.