Updated Forecast Error Calculation in Advanced Planning
We have modified the error calculation in Advanced Planning from ((Plan - Actual) / Actual) to ((Actual - Plan) / Actual). Though both calculations are technically correct, we decided to make the change after the input from multiple customers. The consensus among customers is that a positive error measurement means that the Actual exceeded Plan and this change reflects this understanding.
Prior implementation resulted in a negative error if actual exceeded plan:
Updated formula now results in a positive error if actual exceeds plan: