Percent Discrepancy Calculator

| Added in Business Finance

What is Percent Discrepancy?

Percent Discrepancy measures the difference between expected and actual values as a percentage. This metric is widely used in inventory management, financial auditing, quality control, and any situation where you need to quantify the gap between what you expected and what you found.

How to Calculate Percent Discrepancy

The formula for calculating percent discrepancy is:

[\text{Percent Discrepancy} = \frac{\text{Discrepancy Value}}{\text{Expected Value}} \times 100]

Where:

  • Percent Discrepancy is the discrepancy expressed as a percentage
  • Discrepancy Value is the absolute difference between expected and actual
  • Expected Value is the planned or anticipated value

Calculation Example

Suppose your inventory records show 1,000 units, but a physical count reveals only 985 units (a discrepancy of 15 units).

Step 1: Identify the values:

  • Expected Value: 1,000 units
  • Discrepancy Value: 15 units

Step 2: Apply the formula:

[\text{Percent Discrepancy} = \frac{15}{1000} \times 100]

Step 3: Calculate:

[\text{Percent Discrepancy} = 1.5%]

The inventory shows a 1.5% discrepancy.

Industry Benchmarks

Application Acceptable Discrepancy
Retail inventory 1-2%
Warehouse management 0.5-1%
Financial records < 1%
Manufacturing 0.1-0.5%
Pharmaceutical < 0.1%

Frequently Asked Questions

Percent discrepancy measures the difference between expected and actual values as a percentage of the expected value. It is commonly used in inventory management, budgeting, and quality control.

Discrepancy typically refers to an unexplained difference, often suggesting an error. Variance is a broader statistical term that can include expected fluctuations.

This varies by industry. Retail inventory typically allows 1-2% shrinkage. Manufacturing may require less than 0.5% for critical components. Financial audits often flag discrepancies over 1%.

Investigate when the percentage exceeds your established threshold, when discrepancies show a pattern, or when the absolute dollar amount is significant regardless of percentage.