Inventory Management

Inventory Management... 2 Customizing Inventory Reports and Count Sheets...4 Printing Inventory Count Sheets... 8 Entering Inventory Counts... 10 Entering Waste, Restage, or Buffet... 12 Entering Invoices, Transfers or Credits... 13 Editing Today's Invoices... 15 Viewing and Printing Invoices...16 Ordering Chicken... 17 Assigning Unknown Vendor Items...19

Daily Inventory Management is divided into 3 main functions: Enter morning Inventory Count and enter opening shift inventory items. Compare morning inventory count to closing inventory. Recount/verify any differences Complete a shift change inventory at least once each day to verify how much inventory is wasted and when, and how much chicken may be unaccounted for. This helps assign accountability to the next Manager on Duty. (refer to the Shift Change procedure within the Standards Library for more information.) Enter all food and paper invoices and transfers. Print a chicken counting worksheet. Begin the Shift Change. MERIT calculates theoretical usage. Immediately begin counting inventory from front to back. Count all items required for shift change: On hand (cooked and raw), Trashed (waste) quantities (since last entry of trash), Restaged quantities during shifts for chicken, filets and strips (already restaged or waiting to be restaged.) Restaurants with Buffets should collect the Buffet Tracking sheet and replace it with a blank one. Enter the inventory in MERIT. Review chicken efficiency and unaccounted for product. Correct any inventory entry errors and check for product control issues. Enter ending inventory: Count ending inventory before closing and enter into MERIT. Follow steps for entering inventory during the day. Enter Waste, Restage and Buffet pieces since the last shift change. Finalize inventory counts during end of day process. In addition to entering on hand counts for daily counted items during end of day, on week-ending and period-ending days, MERIT will prompt to enter onhand counts of inventory items that are counted on a weekly or period basis. Weekly and Period count sheets are available in MERIT to assist in counting on hand inventory. Page 2 2013-02-26 2013 KFC Corporation. All rights reserved. Inventory Management May be used only by KFC and its franchises and licenses. Unauthorized use, sale, or reproduction is strictly prohibited. Use by KFC system franchises or licenses constitutes their agreement to be responsible for resulting claims and indemnify KFC, its parent and commonly owned affiliates and their respective employees and agents.

Definitions When managing inventory it is important to understand how MERIT defines and groups inventory so that it can be entered accurately. The terms below will be used throughout the document. Term Definition Ingredient Account Product Recipe Menu Item An item that is a basic component of something counted as inventory. Examples of an Ingredient would be chicken or breading flour. An OR filet would not be an Ingredient, but it would contain several Ingredients. Ingredients are represented in inventory applications by measuring spoons. A group of similar things that are not typically counted as part of inventory. Examples of Accounts are smallwares and office supplies. Accounts are represented in inventory applications by a green dollar sign. This is how Ingredients or Accounts are received from vendors. For example Product 26085 and Product 28897 are both for Ingredient 1 chicken, but one has 10-2 HD bags per case and the other contains 9 2 HD bags per case. Products are represented in inventory applications by a box. Recipes are combinations of Ingredients or even other Recipes that describe items sold in the restaurant. For example OR filet is a Recipe that contains an OR/Grilled Filet, breading flour, OR seasoning, milk and egg mix, and breading salt. A Doublicious Sandwich Recipe would contain a Recipe for an OR Filet plus all of the sandwich ingredients including the packaging. Recipes are represented in inventory applications by a recipe card. Menu Items are groups of Recipes and/or Ingredients that contain all of the things that make up an item on the menu which will have a corresponding button on the POS. For example a Doublicious Combo Menu Item rung at the drive thru would contain the Recipes for a Doublicious sandwich, a medium drink, small wedges, and a prepack. When this Menu Item is rung the system uses the Recipes and Ingredients that make up the Menu Item to deplete from inventory. Nothing will be represented in inventory applications at the Menu Item level. 2013-02-26 2013 KFC Corporation. All rights reserved. Inventory Management Page 3 May be used only by KFC and its franchises and licenses. Unauthorized use, sale, or reproduction is strictly prohibited. Use by KFC system franchises or licenses constitutes their agreement to be responsible for resulting claims and indemnify KFC, its parent and commonly owned affiliates and their respective employees and agents.

Customizing Inventory Reports and Count Sheets The Inventory Customization Manager allows an Above Restaurant Leader to view and customize the display order of ingredients within inventory applications and reports. It also allows for editing of count cycles, standard cost, and inventory categories for ingredients through OSM tools. All Inventory information must be entered and edited using the OSM Tools from your applicable home office. To access OSM Tools, log into TeamKFC using your username and password. Select MERIT Users, then OSM Tools. Click the "Click here to access OSM Tools" button. Under "Franchise Organization" found on the left side of the screen, select "Inventory". From the Inventory page, you can view and edit count cycles, standard cost, and inventory categories. Inventory settings apply to all of your stores during completion of the next Start of Day. They are not set on a store-by-store basis. NOTE: You should no longer change count cycles on ingredients (flex) in OMR. Changes to count cycles should be done ONLY in OSM Tools. Standards Categories Categories and Storage Locations will only affect display order. It will not change the count cycle or departments. The term "Category" refers to grouping inventory items together based on their Ingredients. These are most commonly used as General Ledger Accounts. Category names can consist of letters, numbers or both. Ingredients will display within these groups on the "Inventory Reconciliation Category Reports". Example: 65040810 Flour/ Seasoning may contain Breading Flower, EC Seasoning, and Breading Salt as some of the ingredients grouped into this category. Click on "Customize" then "Categories/Storage Locations". The Inventory Customization Manager screen will appear. Select the "Manage Categories" tab at the top of the Inventory Customization Manager. Categories that are already set up appear in the left pane. If no categories have been defined, "Category 0 Unknown" will be present. Any ingredient that has not been assigned to a category will display under "Unknown" Add a Category (GL Account) To add a Category, double-click in the left pane under "Description" next to the ID you want to define. Type in a Category description. Continue defining Categories.(Up to 20 can be defined). Click "Save" to save your changes. Click "Cancel" to remove any changes made. Page 4 2013-02-26 2013 KFC Corporation. All rights reserved. Inventory Management May be used only by KFC and its franchises and licenses. Unauthorized use, sale, or reproduction is strictly prohibited. Use by KFC system franchises or licenses constitutes their agreement to be responsible for resulting claims and indemnify KFC, its parent and commonly owned affiliates and their respective employees and agents.

Customizing Inventory Reports and Count Sheets Ingredients Edit a Category Click on the category "Description" in the left pane and make any necessary changes. Click "Save" to save your changes or click "Cancel" to remove any changes. If you are in edit mode you will not be able to navigate to other tabs or exit the application. Save or Cancel changes to continue. Ingredients can be assigned to Categories which control how it will display on the Inventory Reconciliation. Ingredients can also be assigned to Storage Locations and Locations. This will control how the items display on the count sheet and inventory entry. Searching Ingredients To search for an ingredient, type part of the name in the Search box and click the magnifying glass icon. All ingredients that match your search will be displayed. To see all ingredients again, click the X icon to the right of the Search box. Editing Ingredients The Ingredients tab allows you to view and edit the count cycle, standard cost and category of ingredients. To edit an ingredient, click the yellow pencil icon to the left of the ingredient s ID. To change the count cycle, click on the Count Cycle drop down menu and select a new count cycle. To edit standard cost, click in the Standard Cost field and type the new value. To change the category, click on the Category drop down menu and select a new category. When editing ingredients that have sub-ingredients (such as Chicken, which may have additional sub-ingredients such as Supplemental White Meat and Supplemental Dark Meat ), you will only be able to make changes to Standard Cost for the subingredients. ONLY count cycle and category can be edited for sub-ingredients. This is done by making the change on the main ingredient. Changes to the main ingredient will carry over to all of the ingredient s sub-ingredients, except for standard cost. Click "Save" to save your changes, or"cancel" to abandon them. To permanently save your changes, click the Submit button at the bottom of the page. NOTE: A red flag icon next to an ingredient s Current Count Cycle means that the ingredient is currently set to a count cycle other than the default count cycle. To see the ingredient s default count cycle, click the yellow 2013-02-26 2013 KFC Corporation. All rights reserved. Inventory Management Page 5 May be used only by KFC and its franchises and licenses. Unauthorized use, sale, or reproduction is strictly prohibited. Use by KFC system franchises or licenses constitutes their agreement to be responsible for resulting claims and indemnify KFC, its parent and commonly owned affiliates and their respective employees and agents.

Customizing Inventory Reports and Count Sheets pencil icon for the ingredient and then click the down arrow next to the Count Cycle dropdown menu. The default count cycle for the ingredient will be labeled beginning with the word Default and then with the actual default count cycle, such as Default (Period). Assign Ingredients to Categories After categories have been defined and saved you will assign Ingredients to those categories. Ingredients will default to the "Unknown" category if they have not been assigned. Select the appropriate category from the drop-down menu. Only the Categories that you have created in the left pane will be available in the dropdown menu. Click "Save" to save your changes. Click "Cancel" to remove any changes made. Storage Locations Ingredients can be assigned to one Category only. The term "Storage Locations" are inventory items grouped together based on their physical location(s) in the restaurant. This is used to sort items on the Inventory Count Sheets in order to simplify the counting process. Common examples may include Walk-in Cooler, Walk-in Freezer, Dry Storage, etc. This allows the count sheet to be sorted based on the layout of your restaurant. Select the "Storage Locations" tab at the top of the Inventory Customization Manager. Storage Locations that are already set up appear in the left pane. If no Storage Locations have been defined, "Category 0 Unknown" will be present. Any Storage Location that has not been assigned to a category will display under "Unknown". Select the Storage Location from the left pane "Storage Locations" Select the Ingredients you want to assign to that storage location by checking the appropriate checkboxes. Ingredients in the middle pane that have been checked, will now display in the right pane under "Sort Ingredients". Here you are able to sort the ingredients, based on how you'd like them to appear on the Count sheet. Add a Storage Location To add a Storage Location: Double-click the left pane next to the ID you want to define. Type in a Storage Location description (up to 50 characters). Continue to define Storage Locations (up to 20 can be defined). Click "Save" to save your changes. Click "Cancel" to remove any changes made. Page 6 2013-02-26 2013 KFC Corporation. All rights reserved. Inventory Management May be used only by KFC and its franchises and licenses. Unauthorized use, sale, or reproduction is strictly prohibited. Use by KFC system franchises or licenses constitutes their agreement to be responsible for resulting claims and indemnify KFC, its parent and commonly owned affiliates and their respective employees and agents.

Customizing Inventory Reports and Count Sheets Edit a Storage Location To edit an existing Storage Location: Click on the Storage Location description in the left pane and make any necessary changes. Click "Save" to save your changes. Click "Cancel" to remove any changes made. If you are in edit mode you won t be able to navigate to other tabs or exit the application. Save or Cancel changes to continue. Assign Ingredients to Storage Locations Ingredients can be assigned to multiple Storage Locations. EXAMPLE: if you have defined Storage Locations of Line, Dry Storage, and Freezer you can assign Chicken to both the Line and Freezer. Click "Save" to save your changes. Click "Cancel" to remove any changes made. After all Ingredients have been assigned to the correct Storage Locations, click on "Preview Count Sheet" to view the display order on the Count Sheet. During Inventory Entry, Ingredients will be displayed in the same order as they are on the Count Sheet. Click Exit (F10) to return to the Inventory Customization Manager screen. Click Close to return to the Main Menu. 2013-02-26 2013 KFC Corporation. All rights reserved. Inventory Management Page 7 May be used only by KFC and its franchises and licenses. Unauthorized use, sale, or reproduction is strictly prohibited. Use by KFC system franchises or licenses constitutes their agreement to be responsible for resulting claims and indemnify KFC, its parent and commonly owned affiliates and their respective employees and agents.

Printing Inventory Count Sheets Follow these steps to print Inventory Count sheets. Standards Print Count Sheets Click on Inventory, then Inventory Count Sheet. The Count Sheet Selection screen will appear. Use the drop-down box to select EOD Count or Shift Count. Use the second drop-down box to select daily, weekly, or period counts. The count sheet will appear. Click Print. Click Exit to return to the main menu. Definitions Term Definition Closing Inventory Depletion Ending Inventory Morning Inventory Period-Counted Items Shift Change Inventory Same as Ending Inventory entered by Manager at close the night before. Closing Inventory appears on Enter Morning Inventory Count screen. MERIT uses Closing Inventory to calculate current day s actual use. MERIT calculates how much product you should have used based on sales. MERIT depletes (reduces) the theoretical inventory based on the number of Menu items rung up on the POS register. Product inventory count entered into MERIT at closing. Product inventory count entered into MERIT before opening the restaurant. This number should equal Opening Inventory and last night s Ending Inventory. Inventory items counted only at period end. MERIT automatically adds the periodcounted items to the inventory list. Costs for period-counted items during the period will show on the Scorecard the same as noninventory items (expenses as purchased). However, once an ending inventory is entered at period-end, true usage for the period is calculated and shown on Scorecard. Period-counted items do not have a depletion. Theoretical Usage will match Actual Usage. Process of transferring responsibility for inventory from one Manager on Duty to another. Page 8 2013-02-26 2013 KFC Corporation. All rights reserved. Inventory Management May be used only by KFC and its franchises and licenses. Unauthorized use, sale, or reproduction is strictly prohibited. Use by KFC system franchises or licenses constitutes their agreement to be responsible for resulting claims and indemnify KFC, its parent and commonly owned affiliates and their respective employees and agents.

Printing Inventory Count Sheets Definitions Cont'd. Term Definition Reuse Start of Day Theoretical Usage Trash Restaged chicken used for Recipes such as Honey BBQ Sandwich and Chunky Chicken Pot Pie. Process followed in the morning before opening the restaurant. This lets MERIT accept and process today s business information. When start of day is finished, it unlocks the MWS for cash and other functions. How much of an ingredient you should have used based on what was rung up on the POS register. Theoretical usage assumes no trash or unaccounted for product. All raw and cooked Ingredients and Recipes which cannot be sold to customers or restaged for reuse. It includes Ingredients and Recipes that are: Spoiled or contaminated. Dropped on the floor. Non-chicken on-the-bone that has exceeded hold time. Unaccounted For Waste Weekly Inventory Product used Product sold, trashed, or restaged = Unaccounted For. If you have unaccounted for product, you may have a product or cash control problem. See Trash. Inventory items counted only at week-end. MERIT automatically adds the weeklycounted items to the inventory list. All weekly-counted items will have a theoretical usage calculated. 2013-02-26 2013 KFC Corporation. All rights reserved. Inventory Management Page 9 May be used only by KFC and its franchises and licenses. Unauthorized use, sale, or reproduction is strictly prohibited. Use by KFC system franchises or licenses constitutes their agreement to be responsible for resulting claims and indemnify KFC, its parent and commonly owned affiliates and their respective employees and agents.

Entering Inventory Counts Standards Enter inventory counts during Start of Day, Shift Change and End of Day. Daily ending inventory of non-chicken items can also be entered prior to starting End of Day. Enter morning inventory during Start of Day. Click the link below for information on completing Start of Day. Completing Start of Day Enter shift change inventory during Shift Change. Click the link below for information on completing Shift Change. Completing Shift Change Enter ending inventory during End of Day, or just prior to starting End of Day. Click the link below for information on completing End of Day. Completing End of Day Follow these steps to enter non-chicken inventory amounts prior to End of Day. This function can be performed no earlier than 4 hours prior to the restaurant's closing time. Count Ending Inventory Count inventoried items by Product and write on Inventory Count Sheet. All of the Products for an Ingredient are summed in Inventory Count Entry to give the total count for the Ingredient. Count inventory in the units listed on the count sheet. Common abbreviations for count units are: Abbreviation Counting Unit Abbreviation Counting Unit BG Bag BL Bundle BX Box CH Chub CN Can CS Case EA Each GL Gallon HD Head JA Jar LB Pound OZ Ounce PC Piece PK Pack PO Pouch SL Slice or Sleeve SV Sleeve TR Tray Page 10 2013-02-26 2013 KFC Corporation. All rights reserved. Inventory Management May be used only by KFC and its franchises and licenses. Unauthorized use, sale, or reproduction is strictly prohibited. Use by KFC system franchises or licenses constitutes their agreement to be responsible for resulting claims and indemnify KFC, its parent and commonly owned affiliates and their respective employees and agents.

Entering Inventory Counts Start Enter Ending Inventory Processing Count inventoried items by Product and write on Inventory Count Sheet. Enter inventory amounts in the correct quantity column. MERIT automatically calculates the total inventory. Any extreme amounts must be checked and confirmed before you can save the ending count. The ending count is validated against the expected efficiency (i.e. did the restaurant use as much of the inventory item as expected). A checkbox and a warning message will appear next to any line item that has an unacceptable (out-of-range) amount or quantity. You must check each checkbox before saving. Actual efficiency is compared to the amount you have In-stock and your Optimal Quantity using the following definitions: Ending = the total quantity for an Ingredient entered by the user during the EOD count. Optimal = the quantity of the Ingredient accounted for by depletion from the menu item sales. In-stock = Begin + Invoices + Waste + Restage Validation Rules: Ending greater than In-stock: Negative efficiency Ending less than In-stock (Optimal/.5): Efficiency too low Ending greater than In-stock (Optimal/1.15): Efficiency to high Depletions use the Menu Items rung on thepos to determine how much of each Ingredient should be depleted based on Recipes. Click OK After the inventory has been entered, the Ending Inventory Ingredients Reconciliation report will generate for daily, weekly and period to date counts. Click Print or Exit. 2013-02-26 2013 KFC Corporation. All rights reserved. Inventory Management Page 11 May be used only by KFC and its franchises and licenses. Unauthorized use, sale, or reproduction is strictly prohibited. Use by KFC system franchises or licenses constitutes their agreement to be responsible for resulting claims and indemnify KFC, its parent and commonly owned affiliates and their respective employees and agents.

Entering Waste, Restage, or Buffet Standards Pay close attention to the counting units displayed on the screen ( pieces; ounces; each) when entering waste, restaged and/or buffet items. Enter waste, restaged items and chicken on the buffet (if applicable) each shift. The following items will be listed on the Waste/Restage/Buffet screen: Waste: Displays all items that waste can be entered for Restage: Displays all item that can be reused in other Recipes (Honey BBQ Chicken Mixture, Pot Pies, etc.) Entering an item as restage moves that quantity from the original Ingredient to the Restaged Chicken Ingredient. Buffet (if applicable): Displays chicken placed on buffet. The balance column shows what has been entered for each Ingredient or Recipe up to that point in the day. Stores with Online Projections will also have a "From OP" column. This will show how much of an Ingredient or Recipe has been expired or moved to the buffet in OP. This is NOT automatically added to the totals, it is there for reference only. Enter all waste, restage and buffet counts by Ingredient or Recipe as indicated. The inventory system will use the Recipes to ensure that all Ingredients are accounted for correctly. Select Waste/Restaged/Buffet Entry Enter Amounts Click on Inventory, then Waste/Restaged/Buffet Entry. The Waste/ Restaged/Buffet Entry screen appears. Enter amounts in the correct column for the Ingredients or Recipes listed. Click OK. Page 12 2013-02-26 2013 KFC Corporation. All rights reserved. Inventory Management May be used only by KFC and its franchises and licenses. Unauthorized use, sale, or reproduction is strictly prohibited. Use by KFC system franchises or licenses constitutes their agreement to be responsible for resulting claims and indemnify KFC, its parent and commonly owned affiliates and their respective employees and agents.

Entering Invoices, Transfers or Credits Standards When you receive food, paper products, or services, by entering the invoice into MERIT. If you receive a credit invoice from the vendor, enter the credit into MERIT just like you enter an invoice, except the credit amount will be entered as a negative dollar amount. If your invoice is from a vendor that automatically downloads invoices, see the Invoice Entry module. Sometimes it is necessary to transfer inventory from one restaurant to another. When transferring food and paper, enter quantities of inventory items transferred in or out. When ordering Other Manager Controllables (OMCs) for several restaurants, you can have the order sent and billed to one restaurant. Transfer costs to each restaurant sharing the order. This may reduce freight costs. Always check the transfer out receipt provided by the transferring restaurant when entering a transfer in. Transfer ins can be viewed in the "view past invoices" screen Inventory can be ordered by Ingredient, or Account, but is usually ordered by Product. Products are typically cases of inventory items identified by Gin #s. Several different Products can all be for the same Ingredient. EXAMPLE: Product 26085 and Product 28897 are both for Ingredient 1 chicken, but one has 10-2 HD bags per case and the other contains 9 2 HD bags per case. Later, when counting your inventory you would count how much of each product you have and all of the Products would be added together and totaled for the Ingredient. You should only receive inventory items by ingredient when you don t know the GIN # of the product, such a receiving less than a case as a transfer from another restaurant. Inventory items that are not counted, such as cleaning products, or non-physical items such as delivery charges are received in inventory as Accounts. Select Invoice/Credit/Transfer Entry Click on Inventory, then Invoice/Credit/Transfer Entry. The Invoice Entry Screen will appear. 2013-02-26 2013 KFC Corporation. All rights reserved. Inventory Management Page 13 May be used only by KFC and its franchises and licenses. Unauthorized use, sale, or reproduction is strictly prohibited. Use by KFC system franchises or licenses constitutes their agreement to be responsible for resulting claims and indemnify KFC, its parent and commonly owned affiliates and their respective employees and agents.

Entering Invoices, Transfers or Credits Enter Invoice Type Information Use the drop-down box to select the invoice type from the list: Received Credit Memo Transfer In Transfer Out Enter the invoice ID number and amount. If entering a transfer in or out, no entry is required in the invoice ID field. If using standard cost, no entry is required in the amount field. Use the drop-down box to select the invoice date. Use the drop-down box to select the vendor. If the vendor is not listed, click on the Inactive checkbox to display all vendors. If the vendor is still not listed, click on Add Vendor. Refer to Vendor Maintenance in the Customizing MERIT module for details. Click the Create a New Invoice button. The Create an Invoice screen will appear. Select the Product, Ingredient, or Account tab. Add Inventory Items Listed on Invoice Double-click on the inventory item to add it to the invoice. Enter the quantity and dollar amount for the item. You must check and confirm all extreme amounts before you can save the invoice. A checkbox and a warning message will appear next to any line item that has an unacceptable (out-of-range) amount or quantity. You must check each checkbox before saving. The actual cost of the item on the invoice is compared to the standard cost for the item. Validation Rules: Entered Cost less than Standard Cost * 0.5: Cost is low Entered Cost greater than Standard Cost * 1.5: Cost is high If cost is OK: No checkbox After all items are entered and the invoice is balanced, click OK. Page 14 2013-02-26 2013 KFC Corporation. All rights reserved. Inventory Management May be used only by KFC and its franchises and licenses. Unauthorized use, sale, or reproduction is strictly prohibited. Use by KFC system franchises or licenses constitutes their agreement to be responsible for resulting claims and indemnify KFC, its parent and commonly owned affiliates and their respective employees and agents.

Editing Today's Invoices Standards If a mistake was made when entering today's invoices, transfers or credits, edit the invoice. Select Invoice/Credit/Transfer Entry Click on Inventory, then Invoice/Credit/Transfer Entry. The Invoice Entry Screen will appear. Select Edit Today's Invoices Click the Edit Today's Invoices button. The Edit Today's Invoices screen will appear. Use the drop-down box to select the invoice you want to edit. The invoice information will appear. Make any changes needed. Click OK. 2013-02-26 2013 KFC Corporation. All rights reserved. Inventory Management Page 15 May be used only by KFC and its franchises and licenses. Unauthorized use, sale, or reproduction is strictly prohibited. Use by KFC system franchises or licenses constitutes their agreement to be responsible for resulting claims and indemnify KFC, its parent and commonly owned affiliates and their respective employees and agents.

Viewing and Printing Invoices Standards Past invoices can be viewed or printed at any time. Select Invoice/Credit/Transfer Entry Click on Inventory, then Invoice/Credit/Transfer Entry. The Invoice Entry Screen will appear. Select View/Print Past Invoices Click the View/Print Past Invoices button. The View/Print Past Invoices screen will appear. Use the drop-down box to select the invoice you want to view or print. The invoice information will appear. Click the Print button to print the invoice. Click Close when finished. Page 16 2013-02-26 2013 KFC Corporation. All rights reserved. Inventory Management May be used only by KFC and its franchises and licenses. Unauthorized use, sale, or reproduction is strictly prohibited. Use by KFC system franchises or licenses constitutes their agreement to be responsible for resulting claims and indemnify KFC, its parent and commonly owned affiliates and their respective employees and agents.

Ordering Chicken Standards Use the Chicken Ordering function to prepare orders for chicken-on-the-bone purchased from approved suppliers. This will help: Reduce out-of-product situations. Reduce loss from spoilage due to over-ordering. Reduce need to transfer from one restaurant to another due to overor under-ordering. The Chicken Ordering function is not an on-line ordering system. Call your supplier to place an order. The Chicken Ordering function considers amount on hand, forecasted usage, and orders not yet received to calculate order quantity. This helps prepare orders several days before calling it in to the supplier. Changes made to the order, the order dates, or the delivery dates must be entered into MERIT so the forecast is correct. The chicken order screen pops up automatically during Start of Day on chicken ordering days. Select Chicken Ordering Entry Click on Inventory, then Chicken Ordering Entry. The Chicken Ordering Screen appears. Enter Order Amounts Review the on-hand amounts, on-order amounts and suggested order for each type of chicken. Enter order amounts in the Actual Order Cases column. Click OK. The order is saved. Changing Chicken Orders (If Needed) Click on Inventory, then Chicken Ordering Entry. The Chicken Ordering screen will appear. Change order quantities listed in the Actual Order Cases column. Click OK. Changes will be saved. Changing Order/Delivery Days Changes to order and/or delivery days must be changed in MERIT so that the suggested order amount will be accurate. 2013-02-26 2013 KFC Corporation. All rights reserved. Inventory Management Page 17 May be used only by KFC and its franchises and licenses. Unauthorized use, sale, or reproduction is strictly prohibited. Use by KFC system franchises or licenses constitutes their agreement to be responsible for resulting claims and indemnify KFC, its parent and commonly owned affiliates and their respective employees and agents.

Ordering Chicken Click on Inventory, then Chicken Ordering Entry. The Chicken Ordering screen appears. Click the Change Order/Delivery Days button. The Change Order/ Delivery Days screen appears. Check the correct order day for the delivery. Use the drop-down arrow to select the correct delivery day. Click OK. The new order and delivery days will be saved. Page 18 2013-02-26 2013 KFC Corporation. All rights reserved. Inventory Management May be used only by KFC and its franchises and licenses. Unauthorized use, sale, or reproduction is strictly prohibited. Use by KFC system franchises or licenses constitutes their agreement to be responsible for resulting claims and indemnify KFC, its parent and commonly owned affiliates and their respective employees and agents.

Assigning Unknown Vendor Items Standards If an order is received from a vendor that offers a Product MERIT does not recognize, the system will prompt the manager to assign the Product to an Ingredient or Account during a Start of Day, Shift Change or End of Day. New Products can also be assigned at any time during the day. Unknown Vendor Product Entry If there are NO unassigned items the invoice will be viewable in "Inventory> Invoice/Credit/Transfer Entry" If there ARE unassigned items the invoice will NOT generate. When downloading an invoice from a vendor, there may be products that do not get assigned to a known ingredient or account. After downloading an invoice, follow the steps listed below to ensure that all products are assigned. The invoice will NOT post until all products have been assigned. Once a product has been assigned, all future receipts will continue to assign that item according to the assignment you choose. If you are unsure where/how to assign a specific product, please consult your Above Restaurant Leader. Follow these steps after downloading an invoice: Go to Inventory>Unknown Vendor Product Entry The Unassigned tab will show all products that are unassigned. Select the item that you would like to assign. Click, Assign New at the bottom right; a new window will appear. In the Ingredients tab, click the ingredient that you would like to assign the product to. If you cannot find the ingredient, click the Available box at the bottom left. After selecting the ingredient, enter the amount in each case at the top. Units will vary by product. Click OK to save Repeat these steps for every unassigned product. Once all products have been assigned, the invoice will download to MERIT. After a product has been assigned, they can be viewed or edited by going to the assigned tab. 2013-02-26 2013 KFC Corporation. All rights reserved. Inventory Management Page 19 May be used only by KFC and its franchises and licenses. Unauthorized use, sale, or reproduction is strictly prohibited. Use by KFC system franchises or licenses constitutes their agreement to be responsible for resulting claims and indemnify KFC, its parent and commonly owned affiliates and their respective employees and agents.