Variance Reporting
Variance reporting is the explanation layer between planned cost and realized cost.
What Variance Answers
Section titled “What Variance Answers”- Where did the budget move?
- Which systems or subsystems changed?
- Which costs exceeded expectations?
- Was the cause market, design, logic, execution, or decision?
Provisional and Substantiated Variance
Section titled “Provisional and Substantiated Variance”The report shows two views:
| Type | Meaning |
|---|---|
| Provisional | All entries — including unsubstantiated ones |
| Substantiated | Only entries backed by a document, or by both an invoice number and a supplier |
There is no hard block on unsubstantiated entries. They contribute to provisional variance totals but are clearly distinguished from substantiated amounts. The same evidence rule applies across cost control: unsubstantiated entries never count toward commitment consumption or cancellation guards, only toward display and variance totals. See Actual Costs.
Variance Findings
Section titled “Variance Findings”A Variance Finding is a human-attributed explanation for a delta between budgeted and actual cost, linked to a specific cost group. Each finding includes:
- Cause — price, quantity, scope, execution, or decision
- Note — optional explanation. An AI draft must use figures present in evidence and respect the direction of the difference. Failed validation returns a reason without text; review or write the explanation yourself
- Source entity — optional link to the entity believed responsible (module, material, labor, or expense)
- Recorded amounts — the budget, actual costs, and substantiated costs at the time you created the finding. Later cost edits do not change those recorded amounts
Finding Lifecycle
Section titled “Finding Lifecycle”Open → InLearning → Resolved| Status | Meaning |
|---|---|
| Open | Finding exists; no work request created yet |
| InLearning | An active work request is linked to the finding |
| Resolved | Resolution outcome and timestamp are set |
Resolution Outcomes
Section titled “Resolution Outcomes”| Outcome | Meaning |
|---|---|
| Module updated | The relevant module was updated |
| Assumption documented | An estimating assumption was recorded or corrected |
| Pricing practice changed | Pricing approach was adjusted |
| Accepted variance | Variance is accepted as a legitimate outcome |
Learning Queue
Section titled “Learning Queue”The Learning tab in Cost Control lists open findings, findings with linked learning work, and resolved findings. Use Send to Learning to create a linked work request and choose who will own the investigation. The person responsible reviews the evidence and makes any recipe or pricing change before recording the outcome.
For the full exercise, see Record a Cost and Review a Variance.
Send to Learning requires an unresolved finding with no other active learning request. Carry-over groups preserving historical costs are ineligible. Currently, substantiated actual must be positive and cover at least 50% of the group’s provisional actual; there is no company setting for this threshold.
Complete the linked request with an outcome and note to resolve the finding. For Module updated, confirm the module you actually changed. Resolution records the decision; it does not edit the recipe for you.
Three-Layer Variance Analysis
Section titled “Three-Layer Variance Analysis”With commitments, variance can be drilled down as:
- Baseline → Commitment — procurement variance (did we buy at the planned price?)
- Commitment → Actual — execution variance (did final costs match the commitment?)
- Baseline → Actual — total project variance
Module Learning Accuracy
Section titled “Module Learning Accuracy”The module’s Learning tab shows findings and outcomes alongside a trend of estimated versus substantiated actual cost. Accuracy uses groups exclusively owned by that module. Coverage measures how much of its estimated contribution can be traced to those groups; the default requires at least 70% and substantiated actual costs.
Unavailable points explain why: mixed composition, missing source attribution, or no substantiated actuals. Finding history and the accuracy trend are separate views; resolving a finding does not guarantee an accuracy point.
Why It Matters
Section titled “Why It Matters”The recorded difference gives the team evidence to decide what to improve in modules, prices, or assumptions. Every project teaches the next one when a person reviews and accepts what is worth keeping.