Use this form to explain variances from project-specific thresholds. For more information, see Explain Variance Overview.
After progress is entered, earned value is calculated, and actual costs are loaded into the cost system, the Explanation of Variance is used to identify thresholds defined on the WBS (or another code field) that have been exceeded. PM Compass provides a method to schedule the automatic creation of Explanation of Variances that exceed the threshold. For more information, see Automatically Create Explanation of Variances.
Alternatively, you can manually create an Explanation of Variance and select a control account. Any variance that exceeds the thresholds is highlighted in the Cost Details grid and listed in the Variances that exceeded thresholds text box that explains the type of thresholds exceeded.
The Explanation of Variance form always displays data at the control account level.
When the workflow process creates the Explanation of Variance form, the project, control account, and cost grid information are also created to ensure that the project or control account cost information in the grid are current as of the period when the form was created. Similarly, when the Explanation of Variance form is manually created, the cost grid information displays on the form when the project and control account values have been entered or selected.
You have the option to copy posted narratives and open corrective actions from the previous period to save time in completing the current period's Explanation of Variance form.
From the Explanation of Variance form, you can do the following:
Identify the variances from the plan that are exceeding the thresholds.
Document the explanation, impact, corrective action, and monthly summary.
Create Corrective Actions to assign someone and track the progress of the documented corrective actions.
All workflow categories in PM Compass share a common form toolbar.
The Explanation of Variance form has the following tabs:
Run an Explanation of Variance report
View the workflows assigned to you
Customize the form using Form Designer
Automatically create Explanation of Variances