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Update Finance Concepts

samantha
2026-03-21 07:42:15 +00:00
parent e9355ba705
commit 9602107dea
1 changed files with 9 additions and 9 deletions
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Finance-Concepts.md

@@ -9,11 +9,11 @@ This page explains the FP&A domain concepts implemented in the engine. It's usef
A variance is the difference between a budgeted amount and an actual amount for a given GL account, department, and fiscal period. A variance is the difference between a budgeted amount and an actual amount for a given GL account, department, and fiscal period.
``` ```
variance_abs = actual − budget variance_abs = actual - budget
variance_pct = (actual − budget) / budget × 100 variance_pct = (actual - budget) / budget x 100
``` ```
Whether a variance is good or bad depends on the **account type** — see Favourability below. Whether a variance is good or bad depends on the **account type** - see Favourability below.
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@@ -29,7 +29,7 @@ A cost going over budget is bad. Revenue coming in above budget is good. The eng
| CAPEX | `false` | actual < budget (capital spend under plan) | | CAPEX | `false` | actual < budget (capital spend under plan) |
| Headcount | `false` | actual < budget (salary/contractor cost under plan) | | Headcount | `false` | actual < budget (salary/contractor cost under plan) |
The `status` field in variance responses is `"favourable"` or `"unfavourable"` based on this logic. It is not simply positive or negative variance — a cost account coming in -5% is favourable, while a revenue account coming in -5% is unfavourable. The `status` field in variance responses is `"favourable"` or `"unfavourable"` based on this logic. It is not simply positive or negative variance - a cost account coming in -5% is favourable, while a revenue account coming in -5% is unfavourable.
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@@ -55,16 +55,16 @@ Accounts are typed to drive both P&L rollup structure and favourability logic.
| Type | Description | `favour_high` | | Type | Description | `favour_high` |
|---|---|---| |---|---|---|
| `revenue` | Top-line income | `true` | | `revenue` | Top-line income | `true` |
| `cogs` | Cost of Goods Sold — direct costs of delivering revenue | `false` | | `cogs` | Cost of Goods Sold - direct costs of delivering revenue | `false` |
| `opex` | Operating expenses — Sales, Marketing, G&A, R&D | `false` | | `opex` | Operating expenses - Sales, Marketing, G&A, R&D | `false` |
| `capex` | Capital expenditure — depreciable assets | `false` | | `capex` | Capital expenditure - depreciable assets | `false` |
| `headcount` | Salaries, benefits, and contractor costs | `false` | | `headcount` | Salaries, benefits, and contractor costs | `false` |
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## Fiscal Periods ## Fiscal Periods
Periods are stored as integers 1–12, decoupled from calendar months. This means the schema supports fiscal years that start in any calendar month (e.g. a company with a July fiscal year start uses period 1 = July, period 12 = June). Periods are stored as integers 1-12, decoupled from calendar months. This means the schema supports fiscal years that start in any calendar month (e.g. a company with a July fiscal year start uses period 1 = July, period 12 = June).
When loading actuals from an ERP, map your ERP's period numbering to the engine's period integers at ingest time. When loading actuals from an ERP, map your ERP's period numbering to the engine's period integers at ingest time.
@@ -72,7 +72,7 @@ When loading actuals from an ERP, map your ERP's period numbering to the engine'
## Actuals Idempotency ## Actuals Idempotency
The actuals ingest endpoint is idempotent by the combination of `(fiscal_year, fiscal_period, department_id, gl_account_id)`. Posting the same combination twice updates the amount — it does not create a duplicate row. This makes it safe to re-run ERP export feeds without needing to truncate and reload. The actuals ingest endpoint is idempotent by the combination of `(fiscal_year, fiscal_period, department_id, gl_account_id)`. Posting the same combination twice updates the amount - it does not create a duplicate row. This makes it safe to re-run ERP export feeds without needing to truncate and reload.
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