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Forecast Error Revenue Weight One Sku Tool

Calculate forecast error revenue weight one sku from explicit caller-supplied inputs.

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Description

Return revenue-weighted error contribution for one SKU.

Business accounting and analytics distinguish gross, net, allocated, recognized and forecast amounts. Currency, period, eligibility and interaction-allocation conventions determine a reported contribution; reconciling one term does not verify revenue, payment rights or future commercial outcomes.

Return revenue-weighted error contribution for one SKU.

When to use this tool

Use Forecast Error Revenue Weight One Sku when reconciling the stated business amount, share, bridge or forecast convention.

How to use the tool and how it works

  1. Enter forecast, actual, unitRevenue, totalActualRevenue. Use the units and conventions below.
  2. Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
  3. Read signedError, absoluteRevenueError, weightedContribution. Use the output convention below.

Return revenue-weighted error contribution for one SKU. Require forecast/actual/unitRevenue >= 0 and totalActualRevenue > 0; signedError = forecast-actual, absoluteRevenueError = abs(error)*unitRevenue, weightedContribution divides by total actual revenue.1

Input fieldMeaning and unitsAccepted input
forecastForecastRequired. Finite number; minimum 0.
actualActualRequired. Finite number; minimum 0.
unitRevenueUnit RevenueRequired. Finite number; minimum 0.
totalActualRevenueTotal Actual RevenueRequired. Finite number; strictly above 0.
Output fieldInterpretationReturned shape
signedErrorSigned ErrorRequired. Finite number.
absoluteRevenueErrorAbsolute Revenue ErrorRequired. Finite number.
weightedContributionWeighted ContributionRequired. Finite number.
json
{
  "input": {
    "forecast": 120,
    "actual": 100,
    "unitRevenue": 5,
    "totalActualRevenue": 1000
  },
  "output": {
    "signedError": 20,
    "absoluteRevenueError": 100,
    "weightedContribution": 0.1
  }
}

Limitations and assumptions

  • This is one supplied term rather than an aggregated metric; forecast horizon, price basis and evaluation validity are not verified.
  • Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
  • Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.

Alternative or Complementary methods

Use complete verified accounts and governing commercial terms, and apply the appropriate accounting and financial judgment for actual reporting, payment or investment decisions.

References

  1. Calculation and input contract: business-analytics/forecast-error-revenue-weight-one-sku — tool.io

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