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Package nexus-account-variance-analysis
Short Description Variance analysis, trend analysis, and significance evaluation for financial accounts
License MIT
Informations about the package nexus-account-variance-analysis
Nexus\AccountVarianceAnalysis
Framework-Agnostic Financial Variance Analysis Engine
Overview
Nexus\AccountVarianceAnalysis is a pure PHP package that provides the core engine for analyzing financial variances between actual results and budgets, forecasts, or prior periods. It calculates variances, identifies significant deviations, performs trend analysis, and provides attribution analysis to explain the drivers of variances.
This package is framework-agnostic and contains no database access, no HTTP controllers, and no framework-specific code. Consuming applications provide comparative data through injected interfaces.
Installation
Package Responsibilities
| Responsibility | Description |
|---|---|
| Variance Calculation | Calculate differences between actual and budget/forecast |
| Significance Evaluation | Determine if variances exceed materiality thresholds |
| Trend Analysis | Identify patterns and trends over multiple periods |
| Attribution Analysis | Break down variances into contributing factors |
| Statistical Analysis | Provide statistical measures (std dev, moving averages) |
| Rolling Forecasts | Update forecasts based on actual results |
Key Concepts
Variance Types
| Type | Comparison | Use Case |
|---|---|---|
| Budget Variance | Actual vs Budget | Annual/quarterly budget comparison |
| Forecast Variance | Actual vs Forecast | Rolling forecast accuracy |
| Prior Period | Current vs Prior | Period-over-period analysis |
| Year-over-Year | Current YTD vs Prior YTD | Annual trend analysis |
| Plan Variance | Actual vs Strategic Plan | Long-term goal tracking |
Significance Levels
- Critical - Variance exceeds 3x threshold
- High - Variance exceeds 2x threshold
- Medium - Variance exceeds 1.5x threshold
- Low - Variance exceeds threshold
- Insignificant - Within acceptable range
Architecture
Contracts (Interfaces)
Core Interfaces
VarianceCalculatorInterface
The main entry point for variance calculations.
TrendAnalyzerInterface
Analyzes trends across multiple periods.
SignificanceEvaluatorInterface
Evaluates whether variances are significant.
AttributionAnalyzerInterface
Breaks down variances into contributing factors.
VarianceDataProviderInterface
Contract for consuming applications to provide data.
Value Objects
VarianceResult
TrendData
SignificanceThreshold
VarianceAttribution
AccountVariance
ForecastVariance
Enums
VarianceType
VarianceStatus
TrendDirection
SignificanceLevel
Services
VarianceCalculator
Core variance calculation logic:
- Amount variance (Actual - Budget)
- Percentage variance ((Actual - Budget) / Budget × 100)
- Favorable/unfavorable determination by account type
- Batch calculations for efficiency
TrendAnalyzer
Trend analysis capabilities:
- Linear regression for trend line
- Moving average calculations (3, 6, 12 period)
- Growth rate calculations
- Seasonality detection
- Future value projections
SignificanceEvaluator
Threshold evaluation:
- Percentage-based thresholds
- Absolute amount thresholds
- Combined threshold logic
- Significance level assignment
AttributionAnalyzer
Variance attribution:
- Price/Volume analysis
- Mix variance
- Rate/Efficiency analysis
- Multi-dimensional attribution
StatisticalCalculator
Statistical functions:
- Standard deviation
- Coefficient of variation
- Correlation analysis
- R-squared calculation
RollingForecastCalculator
Forecast updates:
- Reforecast based on actuals
- Remaining period projections
- Accuracy tracking
Exceptions
| Exception | When Thrown |
|---|---|
VarianceCalculationException |
Variance calculation fails (division by zero, etc.) |
InsufficientDataException |
Not enough data points for trend analysis |
InvalidThresholdException |
Threshold configuration is invalid |
Usage Example
Variance Analysis Formulas
Basic Variance
Favorable/Unfavorable Logic
| Account Type | Over Budget | Under Budget |
|---|---|---|
| Revenue | Favorable ✅ | Unfavorable ❌ |
| Expense | Unfavorable ❌ | Favorable ✅ |
| Asset | Contextual | Contextual |
| Liability | Contextual | Contextual |
Price/Volume Analysis
Integration with Other Packages
| Package | Integration |
|---|---|
Nexus\Finance |
Provides actual GL balances |
Nexus\Budget |
Provides budget amounts |
Nexus\FinancialStatements |
Variance data in statement notes |
Nexus\Notifier |
Alert on significant variances |
Nexus\AuditLogger |
Log variance analysis events |
Related Documentation
- ARCHITECTURE.md - Overall system architecture
- CODING_GUIDELINES.md - Coding standards
- Nexus Packages Reference - All available packages
License
MIT License - See LICENSE for details.