Sample Inventory Process

The Steps for an example simple inventory process for a Cheeseburger are shown below.

The Ingredients for the Cheeseburger are:

1 Hamburger Patty
1 Hamburger Bun
1 American Cheese Slice

Step 1: Setup the Inventory Items for a Cheeseburger

Note:Inventory Groups, Subgroups, Units and Vendors must be established before completing the following steps.

Enter the Inventory Item, Hamburger Patty. In this example, Hamburger Patties are sold by the Recipe Unit Each and counted in the Stock Unit Each. The Purchase Unit is Case. The Par Level is 3 Cases and the Min. Purchase is 1 Case. The Purchase Cost of a Case is $12.00 or $0.50 a Hamburger Patty (see Figure 4.27).

Figure 4.27

Enter the Inventory Item, Hamburger Bun. In this example, Hamburger Buns have a Recipe Unit of Each and a Stock Unit of "Each". The Purchase Unit is Case. The Par Level is 3 Cases and the Min. Purchase is 1 Case. The Purchase Cost of a Case is $6.00 or $0.25 a Ham- burger Bun (see Figure 4.28).

Figure 4.28�

Enter the Inventory Item, American Cheese Slice. In this example, American Cheese Slices have a Recipe Unit of Each and a Stock Unit of "Each". The Purchase Unit is Pkg. The Par Level is 2 Pkgs and the Min. Purchase is 1 Pkg. The Purchase Cost of a Pkg is $10.00 or $0.10 an American Cheese Slice (see Figure 4.29).

Figure 4.29
Step 2: Procedure to enter the Recipe for the Cheeseburger Menu Item

Create a Menu Item named "Cheeseburger" and set the price to $5.95 for this example (see Figure 4.30).

Figure 4.30

Enter the Recipe for the Cheeseburger as shown in Figure 4.31. The Total Ingredient Cost is $0.85 bringing the Food Cost percentage for the Cheeseburger to 14.28% (see Figure 4.31)

Figure 4.31
Step 3: Create an Inventory Worksheet Report

Select the Items (American Cheese Slice, Hamburger Bun and Hamburger Patty) used for the Cheese burger that will be used to Enter Inventory, Enter Invoices and view the Inventory Usage Analysis Report. In this example, the Inventory Worksheet is named "Cheese- burger Worksheet" (see Figure 4.32).

Figure 4.32
Step 4: Enter the Initial Inventory

For this example, the Inventory was taken at the end of the day on 06/01/200X. The Inventory is calculated at the end of the business day it was taken (see Figure 4.33).

Figure 4.33

For this example, 67 American Cheese Slices, 32 Hamburger Buns and 48 Hamburger Patties were counted at the end of the business day 06/01/200X and entered into the Cheeseburger Worksheet below. Verify the Qty and Post the Inventory (see Figure 4.34).

Figure 4.34

Select the Post Date and the Invoice # for the Invoice. Select the Cheeseburger Worksheet and select Create (see Figure 4.35).

Figure 4.35

Enter the Qty for the Items received on the Invoice. For this example, 3 Cases of Hamburger Patties, 3 Cases of Hamburger Buns and 1 Pkg of American Cheese Slices were received (see Figure 4.36). Verify the Qty and Price and Post the Invoice.

Figure 4.36
Step 6: Enter the Ending Inventory to calculate the Variance on the Inventory Usage Analysis Report.

In this example, the Inventory was taken 06/08/200X, a week after the previous Inventory was taken (see Figure 4.37).

Figure 4.37

For this example, 158 American Cheese Slices, 97 Hamburger Buns and 112 Hamburger Patties were counted at the end of the business day 06/08/200X and entered into the Cheeseburger Worksheet below. Verify the Qty and Post the Inventory.

Figure 4.38
Step 7: Viewing the Inventory Usage Analysis Report.

Select the latest Inventory Cheeseburger Worksheet to view the report (see Figure 4.39).

Figure 4.39

The Inventory Usage Analysis Report is displayed below (see Figure 4.40). For this example, 7 Cheeseburgers were sold between 06/02/200X and 06/08/200X.

Note: In this example, the Actual Quantities are not equal to the ideal quantity to better illustrate the various computation on the Inventory Usage Analysis Report.

The Actual End Inv. should equal the Initial Inventory + Purchases QTY Sold. However, the actual number is not equal to the ideal number in this example and will show up on the Inventory Usage Analysis Report.
User-added image
Figure 4.40

Figure 4.40.1 American Cheese Slice Usage Analysis