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Terminology

Navigating the FP&A terminology

Term
Definition
Model
The model that you build and develop over time to create annual budgets and rolling forecasts.
Annual budget
"How you expect the year to go"
A 12-month plan that is co-developed and approved at each year's outset.
Rolling forecasts
"How the year is actually going"
Updates to the annual budget throughout the year, e.g., including newer actuals or manual adjustments. Rolling forecast versions are typically locked on a monthly or quarterly basis.
Budget variance analysis (BVA)
Compares your company's actual financial performance against it's budgeted performance.
Actuals
Recorded real-world data that has occurred. Actuals are either used for budget variance analysis (BVA) or re-forecasting purposes.
Budget variance analysis: Marked by orange in Francis
Re-forecasting: Marked by purple in Francis
Latest forecast
The live version of your model that you can edit.
Saved version
How you save annual budgets and rolling forecasts throughout the year. Once edits to your latest forecast are done, save it as an annual budget or rolling forecast and name it accordingly.
Models edits
Edits to hardcoded values, formulas, or the forecast start date, all three of which affect forecast values
Scenarios
Alternate model branches with edits leading to different outcomes.

Term	Definition
Model	The model that you build and develop over time to create annual budgets and rolling forecasts.
Annual budget	"How you expect the year to go" A 12-month plan that is co-developed and approved at each year's outset.
Rolling forecasts	"How the year is actually going" Updates to the annual budget throughout the year, e.g., including newer actuals or manual adjustments. Rolling forecast versions are typically locked on a monthly or quarterly basis.
Budget variance analysis (BVA)	Compares your company's actual financial performance against it's budgeted performance.
Actuals	Recorded real-world data that has occurred. Actuals are either used for budget variance analysis (BVA) or re-forecasting purposes. Budget variance analysis: Marked by orange in Francis Re-forecasting: Marked by purple in Francis
Latest forecast	The live version of your model that you can edit.
Saved version	How you save annual budgets and rolling forecasts throughout the year. Once edits to your latest forecast are done, save it as an annual budget or rolling forecast and name it accordingly.
Models edits	Edits to hardcoded values, formulas, or the forecast start date, all three of which affect forecast values
Scenarios	Alternate model branches with edits leading to different outcomes.

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