That's right.
For example you might plot let's say 1000 meters from your boat.
You have the bearing overlay mod right? 1000m is within the bearing overlay, so compare them. Then you see that 1000 meters on the plot tool is 50 meters off. The bearing tool got it right. So for close plotting less than 15km/30km (depending on wich one you use), you better use the bearing overlay.
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