Traffic Light variance reporting is a concept where you can use traffic light ratings as a visual indicator on your variances. A simple combination of colours can indicate whether your variances are Unfavourable (Red),  On Track (Amber), or Favourable (Green).  

In this video we will add a conditional formatting rule to the $ variance column. The actual condition is based on the % variance value. In some reports the % variance column may not be displayed, but as this video shows, you can use any available data, not just that which is in the column you apply the rule to.