| name | variance-commentary |
| description | Write flux commentary for P&L and balance-sheet lines over threshold, comparing current period against prior period and budget with drivers explained from underlying activity. Use for month-end close packages and management reporting. |
| metadata | {"short-description":"Write month-end variance commentary"} |
Variance Commentary
Given current-period actuals, prior-period actuals, and budget for the same scope, produce a commentary table.
Threshold
Flag a line for commentary if either condition is true:
- Absolute variance is at or above the firm's materiality threshold.
- The line is on the always-comment list, such as revenue, headcount cost, or cash.
If no threshold is provided, use 5% of the line or a fixed floor if the user supplies one.
For Each Flagged Line
| Column | Content |
|---|
| Line | Account or caption |
| Current / Prior / Budget | The three values |
| Delta vs prior and Delta vs budget | Amount and percent |
| Driver | One sentence explaining the movement from underlying activity |
A driver explains why, not what. Good: "Cloud spend up $1.2M on incremental GPU reservations for the May launch." Bad: "Cloud spend increased $1.2M, or 18%."
Sourcing the Driver
Inspect the activity behind the line, such as journal-source breakdown, vendor mix, headcount delta, or volume times rate. Use configured GL, ERP, and document tools through interpreter-app tools ... when available.
If the driver is not clear from the data, write "driver unclear - flag for controller" rather than inventing one.
Output
Return the commentary table plus a short narrative, three to five sentences, summarizing the period's biggest movers.
