How do you calculate variance during month-end close?

Detailed Explanation

You can calculate the absolute variance by subtracting the previous period's actual amount from the current period's actual amount. Variance = Current Month Actual − Previous Month Actual. To calculate the percentage variance, divide the absolute variance by the previous month's actual amount and multiply by 100. Percentage Variance = (Variance / Previous Month Actual) × 100. When the comparison base is zero or negative, use an appropriate alternative presentation rather than relying on the standard percentage calculation.