In this page, we calculate the stock variances based on your daily purchases/issues and sales. The term 'issues' here is used synonymously with purchases for that specific outlet for which you are seeing variance.

Why is this important ?

To ensure stocks are consumed as per your recipes and adhere to expected food cost percentages. When this happens, you will find that variance for most stocks will be marginal. i.e expected consumption vs actual consumption will be very close. But in practice, that is not the case. This simplified report is provided without taking your opening and closing stock into consideration and acts as an indication of where you are heading on a daily basis. The reason why opening and closing stock is not considered here is to provide users with the option to still track variance should they fail to record them. Also, in some outlets, closing stocks are recorded by month end and it could be too late by then.

Expected consumption is generated based on defined recipes for your menu items that are sold in that given time period. If you have not linked a recipe to a menu item, it won't be considered in the calculation. You can of course link the menu items that are missed out and rerun this report for more accuracy.

Variance report based on opening and closing stock, including wastages and transfers is available as "stock variance" under insights.

Go to INSIGHTS -> ISSUE VARIANCE



As shown above, based on issued items, the variance quantity, variance value and percentage is calculated.

By default, the variance report displayed will be for "last 30 days", you can use Date range dropdown to select the date range as per your requirement.

You can sort by any column in this report. Suggested method is to track by sorting on variance value and work on top 5-10 items for the next month and bring it down. Once these start showing reduced variance, move to next 5-10 items.

Do not try to work on too many items at one shot, it is very difficult. Giving specific targets to your Chef and tracking them will increase the possibility of getting desired results and more efficiency.

Negative (-ve) variance value indicates that the item is over consumed. This leads to increased food cost and reduces your profit.

Possible reasons are:

Recipe indicates X gms but you are using Y gms, where Y > X
Punched in procured quantity by the store department for the item was X, but actual procured quantity was Y, where Y < X. Essentially, you are billed for more than what you are actually purchasing !



You can also filter by SKU category, search by SKU name and also filter by items that are procured but not expected to be consumed, or consumed but not procured.
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