Analyzing Shortages

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Analyzing Shortages

To analyze shortages in your system, there are several reports you’ll need to examine.  Most notably is the Ideal Usage Variance Report.  This report examines the sales of each inventory item and compares it to the total amount of the item used which adds waste, spoilage and shrinkage to those sales.  The difference between the two numbers is calculated, and a cost is calculated based on individual receipts of that inventory item.

Also of use is the Inventory On-Hand report.  This takes your current on-hand values and tells you exactly how much of each item you should have broken down into your case, package and unit quantities.  Used in conjunction with an inventory count, this report can tell you items that are continually coming up short against what the Inventory module indicates you should have.

The Inventory Shrinkage report should probably be examined if neither of these reports are providing the information you require.  This report will detail each item that ends up having shrinkage and what that shrinkage quantity is, and when it occurred.  Shrinkage is recorded when a count is performed and actual on-hand stock ends up being less than what the Inventory module claims you should have.

Finally, the Recipe Card report can be useful to determine if the recipes you have are not using the correct portions of each inventory ingredient.  This report should be used in conjunction with your product sales by category report in Point of Success to determine how many of each recipe you have sold, to make sure that the portions seem to be accurate.  If they are not, it might require stricter portion control when each recipe is being made.