LOCATION COST SUMMARY John Mohler University of Maryland.
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Transcript of LOCATION COST SUMMARY John Mohler University of Maryland.
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LOCATION COST SUMMARYJohn Mohler
University of Maryland
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Objectives• Location Cost Summary Introduction
• Analyzing• Transfer Detail Analysis: Transfer Cost• Purchase Recap: Ending Purchasing
• Cost Categories• Sorting Inventory by category ie. Meats & Seafood, Frozen
Convenience etc
• Inventory Analysis• Can break down by category to all items.• Good way of checking for accuracy
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Location Cost Summary• Used as an accountability tool• Based on dollars of inventory usage• Can evaluate recipe accuracy and production• Check inventory by category• Errors caused by: overproduction, Invoice not posted
correctly, inventory error• To figure out food cost dollars and %.
• Beginning Inventory +or - Transfers + Inventory Purchases – Ending Inventory = Period Actual Cost
• Period Actual Cost divided by Net Sales.
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LCS: Analyzing• We don’t really use AF at UMD
• But if you do, look at the colors, blue and red, which shows theoretically did not portion food correctly
• Food Cost % = Total Cost/Total Sales• If it’s close to the average• Set “Consolidated Period” to look
• Beginning and Ending Inventory• I’ll look at the total Location Cost Summary first to see if there are
any major differences in total inventory dollars.• Then I’ll look at the cost category to see if there are significant
differences by double clicking on that category.
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Transfer Detail Analysis• See Transfer Cost
• All locations, all inventory numbers• Match up to LCS
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Example
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Purchasing Recap• Ending purchasing for the week• What to get out of this report.• Accurate invoicing• A way to check if every invoice is in the system
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Example
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Cost Categories• Assign Inventory Numbers to a Cost Category• Can set up a Cost Category anytime
• E.g. finished baked food category– Bakery Commissary
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Cost Categories: Inventory #
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Cost Categories: Setting up
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Inventory Analysis• Preview instead of print• Can see Purchase Cost• Analysis sheets are set up in the order of Inventory Books
and by Category• Last page has the total inventory figure needs to match
the ending inventory dollar for dollar for the total
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Inventory Analysis Filter• Suppress Zero Line
• eliminate all items from the Inventory Analysis that have zero beginning inventory, zero ending inventory, no planned usage, transfers or recent purchases. Many items in our uncounted inventory storage are will be under this. Smallwares for example are not counted once these items are introduced.
• Suppress Zero Variance• report will not show items having variance between actual and
planned usage.
• With price changes• only those items with price changes since the prior inventory count.
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Where to find this.
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Inventory Analysis: Analyzing• Look for big % changes in prices• Ending inventory look for big +’$ amounts• Make sure total inventory matches Location Cost
Summary • The responsibility on the analysis falls onto the location. • I looked at these weekly for mistakes to back them up.
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Deviation Case:• Invoicing incorrect. If an invoice has the wrong price in
versus pack size, one item can throw the whole inventory off. An example of this would be putting the case price in for a bottle of Jack Daniels(Golf Course buys it by the bottle and Catering buys it by the case):
1 Case of 12 = $193.00 If FoodPro is set up for bottle pricing and it was invoiced by the case instead of the bottle. Then 36 bottles x $193.00 = $6948.00 when it should be 36x $16.08+=$579.00. If it doesn’t get caught…inventory is overstated by $6369.00.
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Miscellaneous features• File: Print Cost Summary• Preview cost Summary• Export Cost Summary (To save paper)• View :Set Consolidated Periods
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Let’s go live and look at :
• Location Cost Summary• Saving Location Cost Summaries
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Questions?• Thank you!