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# Variance Analysis Example
# ==========================
# Run with: forge calculate examples/variance.yaml
#
# This example demonstrates FP&A variance analysis functions:
# - VARIANCE(actual, budget): Simple difference
# - VARIANCE_PCT(actual, budget): Percentage variance
# - VARIANCE_STATUS(actual, budget, threshold): Favorable/Unfavorable status
#
# These are functions Excel doesn't have built-in.
# Every FP&A analyst builds these manually. Forge has them native.
_forge_version: "5.0.0"
# ─────────────────────────────────────────────────────────────────────────────
# Budget Data
# ─────────────────────────────────────────────────────────────────────────────
budget:
revenue:
value: 1000000
formula: null
cogs:
value: 400000
formula: null
gross_profit:
value: null
formula: "=revenue - cogs"
opex:
value: 300000
formula: null
operating_income:
value: null
formula: "=gross_profit - opex"
margin:
value: null
formula: "=operating_income / revenue"
# ─────────────────────────────────────────────────────────────────────────────
# Actual Data
# ─────────────────────────────────────────────────────────────────────────────
actual:
revenue:
value: 950000
formula: null
cogs:
value: 420000
formula: null
gross_profit:
value: null
formula: "=revenue - cogs"
opex:
value: 280000
formula: null
operating_income:
value: null
formula: "=gross_profit - opex"
margin:
value: null
formula: "=operating_income / revenue"
# ─────────────────────────────────────────────────────────────────────────────
# Variance Analysis
# ─────────────────────────────────────────────────────────────────────────────
# VARIANCE(actual, budget) -> actual - budget
# VARIANCE_PCT(actual, budget) -> (actual - budget) / budget
# VARIANCE_STATUS(actual, budget, threshold_or_type)
# - Returns: 1 = favorable, 0 = on target, -1 = unfavorable
# - For costs, use "cost" type (under budget = favorable)
# - For revenue, default behavior (over budget = favorable)
variance:
# Revenue variance (positive = beat budget)
revenue_var:
value: null
formula: "=VARIANCE(actual.revenue, budget.revenue)"
unit: "$"
revenue_pct:
value: null
formula: "=VARIANCE_PCT(actual.revenue, budget.revenue)"
unit: "%"
revenue_status:
value: null
formula: "=VARIANCE_STATUS(actual.revenue, budget.revenue, 0.05)"
# COGS variance (using "cost" type - under budget = favorable)
cogs_var:
value: null
formula: "=VARIANCE(actual.cogs, budget.cogs)"
unit: "$"
cogs_pct:
value: null
formula: "=VARIANCE_PCT(actual.cogs, budget.cogs)"
unit: "%"
# For costs, being OVER budget is unfavorable
cogs_status:
value: null
formula: '=VARIANCE_STATUS(actual.cogs, budget.cogs, "cost")'
# Gross profit variance
gross_profit_var:
value: null
formula: "=VARIANCE(actual.gross_profit, budget.gross_profit)"
unit: "$"
gross_profit_pct:
value: null
formula: "=VARIANCE_PCT(actual.gross_profit, budget.gross_profit)"
unit: "%"
# OpEx variance (cost type)
opex_var:
value: null
formula: "=VARIANCE(actual.opex, budget.opex)"
unit: "$"
opex_pct:
value: null
formula: "=VARIANCE_PCT(actual.opex, budget.opex)"
unit: "%"
opex_status:
value: null
formula: '=VARIANCE_STATUS(actual.opex, budget.opex, "cost")'
# Operating income variance
operating_income_var:
value: null
formula: "=VARIANCE(actual.operating_income, budget.operating_income)"
unit: "$"
operating_income_pct:
value: null
formula: "=VARIANCE_PCT(actual.operating_income, budget.operating_income)"
unit: "%"
# ─────────────────────────────────────────────────────────────────────────────
# Expected Output:
# ─────────────────────────────────────────────────────────────────────────────
# Budget:
# Revenue: $1,000,000
# COGS: $400,000
# Gross Profit: $600,000
# OpEx: $300,000
# Operating Income: $300,000
# Margin: 30%
#
# Actual:
# Revenue: $950,000
# COGS: $420,000
# Gross Profit: $530,000
# OpEx: $280,000
# Operating Income: $250,000
# Margin: 26.3%
#
# Variance Analysis:
# Revenue: -$50,000 (-5.0%) MISS <- Below budget
# COGS: +$20,000 (+5.0%) MISS <- Over budget (bad for costs)
# Gross Profit: -$70,000 (-11.7%) MISS
# OpEx: -$20,000 (-6.7%) BEAT <- Under budget (good for costs)
# Operating Income: -$50,000 (-16.7%) MISS
#
# Key Insight:
# Revenue shortfall (-$50K) combined with COGS overrun (+$20K)
# partially offset by OpEx savings (-$20K) = Net miss of $50K