explain-work-package-cost-variancelisted

# Explain work-package cost variance ## When to use Use for a versioned project baseline and a reporting cutoff. Explain differences; do not approve spending or alter a budget. ## Inputs - Baseline work-package amounts, currency, period and scope; approved changes with effective dates. - Posted actuals, original accruals, signed accrual reversals or clearing entries, commitments and forecast-to-complete records with exact cost-event, order, receipt, accrual and invoice links. - Supplied allocation, exchange-rate and reporting rules, including the source's balance basis, settlement treatment, cutoff and shared charges. ## Procedure 1. Reconcile the original baseline through approved changes to the current authorized baseline. Keep unapproved requests outside that bridge. 2. Assign each actual, accrual and commitment to one work package and cutoff period using source identity; keep ambiguous charges unassigned rather than split by guess. Link each cost event through its commitment, receipt, accrual, clearing entry and posted invoice where they exist. 3. For each event, compute open accrual as original accrual plus signed adjustments and reversals through the cutoff. A posted actual replacing an accrual needs an exact settlement link and reversal or policy-defined clearing evidence. If both remain positive for the same event, hold the final incurred figure rather than adding them. Reject negative open accrual unless an evidenced correction explains it. 4. Compute incurred-