How To Set Up A Restaurant Profit Maximizer

Transcription

1 Inventory Guide Version 8 2 nd Edition Revised 2013 KIS Software, Inc.

2 Table of Contents Introducing MicroSale s RPM Inventory Program... 2 Features of MicroSale RPM Program... 2 Getting Started... 3 Navigating Through RPM: Understanding the Main Menu... 3 Inventory Setup... 4 Inventory Maintenance... 5 Sub Recipes... 8 Creating a Sub Recipe... 8 Menu Recipes... 9 Adding a Recipe to a Menu Item... 9 Purchase Orders and Invoices Creating a Purchase Order Receiving the Order from P.O. Number Receiving an Order Directly to Invoice without a P.O Reviewing an Invoice Later Update EDI (Electronic Data Interchange) Operational Procedures Frequency of Inventory Counts Print Inventory Sheet Inventory Count Receive new products via Purchase Orders and Invoices Inventory Comparison Cost Reports Plate Cost Cost Over % Plate Cost by Transaction Weight Inventory Items Variance Reports Purge Inventory Server Setup

3 Introducing MicroSale s RPM Inventory Program One of the best ways to increase profits in the hospitality industry is by controlling food and beverage costs. Our inventory and food costing module, the Restaurant Profit Maximizer (RPM module), allows owners and operators to keep track of their product inventory levels and purchases, easily creating purchase orders for each vendor when needed. This module can further help by tracking minimum par levels for products and recommending a reorder amount when the actual inventory level falls below the desired par level. The RPM module also links to the menu such that recipes can be created based upon the raw products that are used, and plate costs can be easily determined based on product costs. Reports for cost-of-goods can be generated that break down food costs into your predefined groups of products with percentage of totals for each. The RPM module can also help calculate recommended prices for individual menu items based upon your desired food cost percentage. The RPM Program is easy to setup and maintain. The first phase of setting up the inventory is entering the Storage Locations, Category and group names, Vendors and measurements. The second phase involves adding the Inventory Items, purchasing information and portion controls, Sub Recipes and finally creating the Menu Item Recipes. RPM works in conjunction with the front of the house program and as the items are sold or consumed the inventory is depleted in real time. As vendors deliver food and liquor items simply enter the purchases into the inventory program. The manager will perform a physical count and enter those counts in to the system. RPM reports can help reduce food and beverage cost while improving your margins. Features such as the Inventory Comparison allows you to inventory key items on a daily basis. It will figure the ideal usage and On Hand amount and run a comparison. The Variance Report will compare the theoretical inventory versus the on hand inventory alerting you to any problems in item counts. Features of MicroSale RPM Program Perpetual Inventory Management Multiple Storage Locations EDI - Electronic Data Interchange (Vendor Integration) Invoices and Purchase Orders Ideal Cost and Usage Normalized Units of Measurement Inventory Reports Comparisons Variance Reports (On-hand versus Theoretical) Store Count, Purchasing and Invoice updating at Corporate Real time 2

4 Getting Started To access the Inventory Module, RPM, go to the Manager Menu, click Options List, then RPM Cost Analysis. Before you can use the features and benefits of the program, you must build your inventory and recipe files. Navigating Through RPM: Understanding the Main Menu The initial setup requires a keyboard for entries while regular usage may be performed with a touchscreen. The toolbar and large buttons in the middle of the screen offers many of the same functions. All initial setup will be used with the first two items on the tool bar, Inventory Set up and Inventory Maintenance. The right hand side of the Main Menu provides the time span for comparing and viewing inventory information. The Beginning Date must be inserted as the starting point and the Ending Date is the cut off for the comparison. The dates in the lower box are references when inventory counts were entered. 3

5 STEP 1 Inventory Setup The Inventory Setup must be inputted before inventory items can be created. It is important to start with Product Storage Locations and work your way down to Condiment Offset; each section builds off of the previous. Begin at the top and work your way down the list. 1. Product Storage Locations: The physical location of where inventory items are stored. The location names are helpful when printing out the inventory sheets for manual counts. Locations may be defined as Dry Storage, Freezer, Walk in Refrigerator, Bar Refrigerator. 2. Category Group Names: General names such as Food, Supplies, Linen, etc. that will group the inventory. [Similar to Menu Item Departments; general group names] 3. Category Names: Specific categories that will be assigned to a Category Group Name. For Example, a restaurant may have several categories assigned to the Food group such as Fish, Chicken, and Red Meat. 4. Vendors: All purchases should have a vendor, the name of the company that supplies the inventory items. 5. Condiment Offset: A percentage of sales for usage of condiments that are not tracked as products, such as mayonnaise, mustard or ketchup. Five Percent is a typical estimated percentage. 6. Measurements: This area is not necessary to set up if the restaurant is using the standard measuring system with Ounces, Pounds, etc. as this unit of measurement is already programmed into the software. You may add customized measurements such as Pinch, Bottle, to make the logic easier to understand for the restaurant. 4

6 STEP 2 Inventory Maintenance At this step, you will have already set up your locations, groups, categories, measurements (for custom portions) and vendors. All inventory items will be added using the Inventory Maintenance screen. As inventory items are added, it will appear in the Inventory List displayed in the spreadsheet at the bottom of the screen. Below provides an example of a completed item. Defining the Inventory Maintenance Screen Product Name: Name of your inventory item. HINT: Menu Recipes provide the names of your menu items; product name is the menu item as a whole. Such as a case of Btl Mich Ultra. Category Name: Choose the category that best represents the product name. The categories should have been setup in step one. Bar Code: While this field may stay blank, if a scanner is provided, you can scan in the case of the inventory as it is purchased. Minimum Level: The minimum amount you should have in your inventory; example; you must have a 6 pack of beer in your inventory at the very least before reorder. The minimum level would be.25 which is 1/4 th of a case (there are 4 6-packs in one case) Reorder Qty: The reorder Qty is the typically quantity you would need to reorder at once. (Do you need to order one case at a time or three?) 5

7 Select Type of Inventory Item Include this item in inventory - All inventory items are purchased, which means you will need to have the item registered in the software, however you may not need to count certain items. While most items would be counted in inventory, cases of straws or cases of trash bags may not. Count item daily for inventory control - Check the option if the item will be counted daily Weight Item (Daily Tracking) - Check the option if the item is weighed by a scale. The item weight will appear in a separate area. Only the tare weight will be set up in this area. Tare weight is the weight of the container Vender Name - Using the dropdown, select the correct vendor for the product. Product Code - the code provided by the vendor on the purchase order (important for EDI) Purchased By - Select the appropriate drop down. (Is this product sold by the case, individually (each), by the gallon, etc.) Count Broken - When the case (or other type of package) is broken/opened, how will the individual items be sold? In the above example, the case of beer will be sold by bottle. Purchase Price - The price you pay for the case (or other type of package) Case Count - How many of the individual items are in the case? Set as Default Vendor - Check the option if your restaurant typically buys the product from the vendor selected. It will automatically set that product name to that vendor. Save Alternates - If the product is purchased occasionally from an alternate vendor, the product s price or size could be different; the alternate vendor will be listed in the purchase orders (the set as default should NOT be checked when saving the alternate) Products Located In - The list created in step one will be displayed in this area. Choose the appropriate locations for the product. A product may have more than one location. 6

8 Portion Control Data Portion Item By: typically the portion item will be the same as the case broken item name Total portions: In the case of beer example, the total portion is the same as the case count. However, in other types of inventory items, it will be calculated out by the weight of the total inventory received by the serving weight. EXAMPLE: a box of chicken breasts is 50 lbs and the serving size is 16 oz. (50 lbs x 16 oz = 800 portions) Portion Cost: The portion cost is calculated automatically based on the Waste Percentage. Understanding the Spreadsheet of Saved Inventory Items As you save inventory items, they will appear in the grid below. By default, the Sort is 0 and inventory will be shown alphabetically or by location alphabetically. The Sort number is useful to change the organization of Inventory Items. For example, a shelf has canned goods such as green beans, white beans, navy beans and corn. If you sort the items as 1, 2, 3, 4; the program will keep the order as numbered rather than alphabetically. Changing the Sort Number: 1. Find an Inventory Item that will need a Sort number other than Go to the Sort column and click in the field with the 0, in the correct row of the Inventory Item. 3. [You will see a gray outline around the field box when selected] Type in the new sort number. 4. CLICK SAVE SORT at the top in the tool bar. [Last option on the top] 7

9 STEP 3 Sub Recipes While creating Sub Recipes is an optional step in the setup, it is highly recommended to create sub recipes to better define the recipes that make up the menu items. Example: Micro Café creates its own guacamole in the restaurant. Guacamole as a recipe is used within other menu items. The guacamole recipe itself is broken down in a sub recipe as avocado and pico de gallo. Creating a Sub Recipe 1. Click the Sub Recipe tab on the tool bar. 2. Type in the name of your recipe; Guacamole 3. In the Recipe Yields box, press the drop down and select the measurement of the serving size. What is a Yield? The recipe's yield is how many servings the recipe will make. 1. After you have created a name and the serving measurement, go down to the spreadsheet. In the drop down box, select items that have been already set up in your Inventory List. The price, portion and total will populate automatically when clicking anywhere else in that row. A. I know that 60 Avocados come in a Case and it is broken down into an Each. B. The recipe uses 6 avocados, an avocado in this example is defined as an Each. 1. In the column of Recipe Uses, press the drop down and select Each. 2. In the QTY Used, type in 6 and press Enter or click out of the box. The Cost and Yield will be automatically figured PLEASE NOTE THE RECIPE DATA CHANGES AS INVENTORY IS ENTERED. 2. The Recipe Data section indicates that our guacamole costs $4.17 to make and it yields 14 ounces. The unit cost is.29 cents. 8

10 STEP 4 Menu Recipes Creating recipes is the final step in the setup process. This process is similar to the Sub Recipe section, but instead of creating names, you will use the drop down and select menu items sold at your restaurant. The Menu Item dropdown box will list all the menu items created earlier in Menu Items and Pricing within the Managers Menu. After selecting a menu item, the sale price will appear in the Sale Price field next to the Menu Item field. The Count as Customer checkbox allows you to get an accurate average sale per customer. You would not check this box if the menu item does not represent a customer Adding a Recipe to a Menu Item 1. Select a Menu Item: 10 Wings 2. Check the option for Count as Customer if the menu item should represent one person. 3. [Similar to the Sub Recipe Setup] Begin choosing Inventory Items that makes up the 10 Wings Menu Item The Price, Inv. Portion and Total will automatically be added when you click the price column 9

11 4. Select the serving that the recipe uses and the quantity used. The cost will be figured automatically after #4 is completed In the purple area to the right of the grid, the menu item cost and cost percentage will appear after steps 1-4 are completed. In this example, the 10 Wings $2.25 to produce with a cost percentage of 32%. If you have a target % you want the cost to be, the program will calculate the target price for you. For example, the screen below shows with a 30% target cost, a $7.48 Sale Price needs to be charged as shown in the target price. This feature is useful when a new dinner is created and you do not know what to charge the customer. 10

12 Purchase Orders and Invoices Creating a Purchase Order 1. Select Vendor from preset choices. 2. Touch Load New Order 3. Touch P.O. Number box, and it will create the P.O. # using the date plus a sequence # at the end. 4. Order Date will default to today s date. 5. Delivery Date automatically is 2 days after the order date. (if incorrect, insert correct date.) 6. Enter On Hand amount for the products listed. ( Par = minimum stock level.) 7. Based on the minimum, it will figure the amount Needed. If necessary, change the needed amount to be correct. 8. The Purchase Order total will be listed on the bottom right of the screen. 9. When the P.O. is complete, touch the green Save P.O. button. (Note: MicroSale can also create projected P.O. s based on sales.) Receiving the Order from P.O. Number Find the Purchase Order by selecting the drop-down beside P.O. Number. Highlight P.O. # and the order will come up. 1. (Another way to pull up the P.O. # without knowing the number, select by Vendor. Use the drop-down arrow beside the P.O. # and the Purchase Orders open under that Vendor will appear.) 2. NOTE: An invoice # must be entered in order to post the invoice as a purchase. 3. If products are the same as on Purchase Order, put in the invoice # from Vendor and select Order Received button. 4. MicroSale will ask if you want to update inventory prices, and then Save the invoice. 5. This will automatically be posted as a purchase. 6. If you need to edit the invoice, enter invoice # and change the item in the received column and it will update the invoice. 7. Use Misc Purchase button to make a purchase from someone other than the Vendors listed and an item from other than the inventory list. Enter Product Name, Category, 8. Quantity Purchased and the Price of item. Select Save. 11

13 Receiving an Order Directly to Invoice without a P.O. 1. Select P.O,s and Invoices tab 2. Select Vendor for your delivery 3. Enter Vendor s Invoice # 4. Click on Delivery Date field and select today s date. 5. Scan the item s barcode on the Case in the Product Code field. 6. MicroSale will ask how many of those? Enter the quantity of cases or units received for that item, and select Done. 7. After all items received are scanned onto the invoice, select Order Received. Reviewing an Invoice Later 1. Select P.O. s and Invoices button 2. Select appropriate Vendor 3. Touch drop-down beside Invoice Number and select proper invoice #. (The invoice opens on the screen.) 4. The Invoice total shows on the bottom right of screen. 5. The invoice can be printed by the Print Order button. Update EDI (Electronic Data Interchange) The electronic communication of business transactions, such as orders, confirmations and invoices, between organizations. MicroSale s EDI allows direct computer-tocomputer transactions into vendors' databases and ordering systems. Several EDI s are available, please contact MicroSale support for the latest list. 12

14 Operational Procedures Frequency of Inventory Counts Expensive items and weight items (scalable) should be counted daily. You should have a checkmark on Count Item Daily for Type of Inventory Item in Inventory Maintenance in addition to Include this item in inventory. For scalable items put a checkmark on Weight Item (Daily Tracking) and enter the Tare Weight. Print Inventory Sheet After you have all items programmed into RPM, print the Inventory Sheet. This will list all products that you purchase, and the location they are stored in the restaurant. Go to each storage location listed on this sheet and count each product on the list (both whole cases and broken (partial case) quantities. Write the number in stock for each product on the sheet. Inventory Count When you select this button, a window opens showing Inventory Dates. Typically your Beginning Date will be the last Ending Date and Ending Date will be today. Click on Search ; Inventory loads by Location automatically, or click Load Alphabetically. Enter the inventory counts for each product (both whole and broken case quantities). Once the inventory count is entered and the stock counts are correct, go to Inventory Maintenance and click on Run Cost at the top of the screen. Inventory will be saved and a report appears on the screen. This report gives you your extensions, and then breaks it down to total cost. Customer count averages are also included. You will have the option to print this report. Receive new products via Purchase Orders and Invoices Refer to RPM Purchase Orders & Invoices Document for detailed procedures. 13

15 Inventory Comparison This feature allows you to inventory key items on a daily basis. It will figure the ideal usage and On Hand amount and run a comparison. To do this, select the dates of the comparison, then touch Load Inventory, and then touch the Run Comparison button. It will calculate the ideal usage and On Hand amount, and then run a comparison. You must select the check mark in Inventory Setup Count item daily for inventory control for each item you want to include in the Inventory Comparison. Once you Run Comparison the fields will populate with the selected items, your beginning inventory count, the purchases you have made and your actual usage from POS. The Mix QTY column is the number of items sold from the Sales Mix. 14

16 Cost Reports Ideal Cost - An Ideal Cost, or theoretical cost is your actual menu cost breakdown by sales mix. It is the calculation of your plate cost and sales volume of each menu item. Your theoretical food cost tells you what your monthly food cost should be. This report can be ran daily, by week to date, or a date range by selecting the desired report from the Ideal Cost tab. The program will show the inventory items that were used and the cost of those items. It will tabulate the total cost and show the percentages based on net sales. The total customer count as well as the average sale per customer will be printed at the bottom of the report. 15

17 Plate Cost To calculate the food cost percentage of an individual portion or menu item, you simply add up the cost of the ingredient(s) and divide that result by the menu price. Total Cost of Ingredients Menu Price = Food Cost Percentage 16

18 Cost Over % To quickly be able to view all items that are over 20%, the food cost click on Cost Over % tab and then enter the target food cost. 17

19 Plate Cost by Transaction It is difficult to build a plate cost because many items do not exist until several keys are selected, for example; 10 Wings, Medium or Deluxe Burger, Med Rare with Cheddar Cheese and Fries. Of course an exact choice of sides are not known until the item is rang and is impossible to extend in to a recipe. Plate Cost by Transaction allows the user to select a transaction date and then select an item to see the total plate cost of all accrued items or you may select the Run Day option and view the plate cost for all items. Because the main item and all the sauces, sides etc. have recipes when selecting a transaction it will pull all the items order together and cost it accordingly. To achieve a plate cost for all transaction a recipe must be entered for all the sides and modifiers in the Menu Recipe section of Inventory Setup and Maintenance. 18

20 Once you have selected a check you will see all the items rang on the check. Touch one of the items and will see the plate cost for all the items on that transaction. Weight Inventory Items Weighted Average Cost is a method of calculating Ending Inventory cost. It takes Cost of Goods Available for Sale and divides it by the total amount of goods from Beginning Inventory and Purchases. This gives a Weighted Average Cost per Unit. A physical count is then performed on the ending inventory to determine the amount of goods left. Finally, this amount is multiplied by Weighted Average Cost per Unit to give an estimate of ending inventory cost. Select the date range then select Load/Compare. 19

21 Variance Reports Difference between the actual number, amount, or volume of an inventory item and the balance shown in the inventory records. Such differences are summarized in the variance report that is prepared to record and rectify inventory control problems. Purge Inventory Selecting Purge Inventory removes old inventory counts for specific starting and ending dates. Inventory is ongoing until you purge it. (It will not self-purge.) 20

22 Server Setup If you are using SQL server for your databases instead of Access, you will need to setup the parameters within RPM. Click the Server Setup tab at the top right side of the R.P.M. home screen. 1. Set Default - By selecting Set Default the Server Setup will enter the Path to File where Microsoft SQL Server is installed. 2. The Location Name- The Location Name is used for multiple inventories. If Sequel Server is used, this product has the ability to operate through a high-speed Internet connection. Scale Port is where the scale is connected to the computer (Com Port). 3. Clean Database It goes through and finds any invalid data and removes invalid entries, inventories no price 4. Misc. Allows you to select the EDI (Electronic Data Interface) to your supplier 5. Server Name - Name / IP of terminal running the SQL Server 21

23 6. Path To Files Path to SQL Data Directory 7. Scale Port - Scale Port is where the scale is connected to the computer (Com Port). The Baud defaults to 9600,n8,1. Type in the Model of the scale used for inventory. MicroSale is certified with the Scale Model Acculab VIC-4KG and is the default setting. 8. Prefix Name Filename prefix for attachments 9. Export File Name MicroSale creates and export folder under the MS directory in a flat file CVS. 10. Export Ideal Usage Same as above 11. Inventory Cost Based - MicroSale offers 4 types of inventory costing. Last-in - The most recently produced items are recorded as sold first. Moving Weight - Method used under a perpetual inventory system, which requires that a new weighted average cost must be calculated after each purchase. FIFO (First In First Out) - the oldest inventory items are recorded as sold first but do not necessarily mean that the exact oldest physical object has been tracked and sold. Blend Will total each item from all invoices then average the cost. 12. Export Cost Once the a cost report is ran an export file is created 13. PLU Search Is On if you require Plu s for recipes and sales mix reporting you can search for items by PLU. 14. Prompt Sales Periods Inventory When selected you will be able to define the date range for inventory reports. 15. Use Sort Levels Item sorting can based on a numeric value entered for each items 16. Store Inventory for Days Allows RPM to store inventory data for a predetermined amount of days. 17. Default Inventory Name Optional setup for multiple inventory areas 18. Enable Price Averaging - If Inventory Averaging is desired, select the Enable Price Averaging box. This will now average the price of your inventory based on weighted averages. Make sure you touch Save before exiting and you must exit out of RPM. When RPM is started again, the price averaging method will be displayed at the bottom of the screen after the copyright. This will let you know that price averaging is in effect. 22