Inventory Items & Menu Items: Can You Tell the Difference ?

YumaPOS Inventory Item versus Menu Item

In the simplest possible terms:

An INVENTORY ITEM is what you buy, use as a raw material , cost & count during a stocktake.

Where a MENU ITEM is what you sell.

The link between them is called a RECIPE.

Beer Can 375ml is the MENU ITEM

BEER CAN 375ML (CTN24) is the INVENTORY ITEM

0.042 is the RECIPE

In this way, I can quickly see that every time I sell 1 Beer Can the system will take 1/24th out of the BEER CAN 375ML (CTN24).

Why use CamelCase and UPPER CASE ? I have seen too many times where a MEN ITEM will have a RECIPE to itself ! Creating a recursive loop.

Where  Does the Cost of the Menu Item Come From ?

When you link a MENU ITEM to an INVENTORY ITEM, you will do so using a RECIPE.

The RECIPE will sort of say “This MENU ITEM is made up of these INVENTORY ITEMS. These INVENTORY ITEMS have a COST PRICE, so I will apportion the COST using the RECIPE”.

Where  Does the Cost of the Inventory Item Come From ?

Default Cost

When you create an INVENTORY ITEM, you may give it a default cost.

This default cost will be used:

• If there are no RECEIVALS made ie you do not enter VENDOR INVOICES
  • This is very likely if you decide to not use any form of stock control, but you want to assign a costs for reporting
• If your STOCK ON HAND balance is $0.00 or negative

 Setting a default cost is a good idea.

Current Cost

This is the weighted average cost that is derived from VENDOR INVOICES that you have entered and applied in your BOM.

Last Purchasing Price or Production Cost

The most recent price determined by the system.

This could be from the latest VENDOR INVOICE or from a PRODUCTION ACT.

If both exist, the price from the latest document is shown.

See it in Action

With No Default Cost

The above image shows there is no default cost, no current cost and no last purchase or production cost.

So the COST of the MENU ITEM will also be $0.00

In the above image, we have listed all MENU ITEMS and searched for beer. We have also toggled COST to be on. The clipboard on the far right shows that we have created a RECIPE.

COST is $0.00 as expected.

With a Default Cost

Below, we have given our carton of 24 a default cost price of $48.00.

As we are only selling 1 can out of 24, the RECIPE will apportion 1/24th of the carton default cost to the can.

$48.00 * 1.1 / 24 = $2.02