COGS Troubleshooting

COGS Troubleshooting

This document was designed to help users pinpoint where and why there are discrepancies in their COGS reporting. 


Why COGS are inaccurate:

If COGS numbers are appearing incorrectly in Yellow Dog one of the following will be the cause:

  1. Invoices were not entered in Yellow Dog
  2.   POS Sales are missing
  3.   Inaccurate Physical Inventory Counts
  4.   Physical Inventories were not committed
  5.   More than one Physical was performed
  6.   Waste Adjustments were not recorded

If COGS numbers are appearing incorrectly in accounting one of the following will be the cause:

  1. Invoices were not entered into accounting software
  2.   POS sales are missing 

*If there are no discrepancies in any of these areas, the issue will be with Operational Workflows, or possible shrinkage*

How to identify where inaccuracies originate:

Invoices:

  1. Keeping up with purchasing is critical to ensuring that COGS numbers remain accurate. A Three-Way Match can be used to cross check – the Yellow Dog invoice, should match the vendor invoice, and what is posted to AP. Keeping these documents together – either by stapling, or scanning – will keep auditing easy at month end
    1.    The Purchase Order to Receipt to Invoice Report can be used to quickly identify purchasing documents that have not been fully invoiced. 
Sales:
  1. Confirming sales have been processed into Yellow Dog should be done regularly. Reviewing the All Sales Captured report will show all sales that occurred at the point of sale, regardless of it the items are tied to Yellow Dog items/recipes. This report should be compared to sales reporting from your Point of Sale for confirmation that nothing was missed

Physical Inventories:

  1. Yellow Dog recommends performing one physical inventory per period – week, month, etc. COGS reporting compares last periods physical to this period – one to one. Users can have separate count sessions in one physical. Our recommendation is for each area be a count session –i.e., kitchen, liquor, wine, snack bar, etc.
    1.        Ensuring that all active items are being included in physicals will keep costs and on hand values accurate
      1.  Tips & Tricks: How to confirm all items are being included in your physical
  1. Variances should be reviewed in the Resulting on Hand report found within the Physical editor prior to committing and any items found with inaccurate counts, should be recounted 
    1.    The Physical Inventory Worksheet can easily be printed to perform recounts
      1.    Printing Physical Inventory Worksheets

Adjustments:

  1. Performing regular manual adjustments to account for waste/spoilage, prevents having to catch up at month end.
    1.   How do I create a Manual Adjustment?


Recommended Reporting:

Post Physical:

  1.  Click Here for an overview of our 3 Base approach to F&B.
  2. For customers rounding 1st & 2nd base Yellow Dog recommends the Inventory Detailed Usage by COGS account
    1. This report will allow users to see a detailed breakdown of their COGS accounts in relation to Physicals, Sales, Purchasing, and Manual adjustments
    2. For customers rounding 3rd base Yellow Dog recommends the Actual v Theoretical by Department, Category. The Actual v Theoretical report also has an option for itemized to allow for more granular comparison in as needed.
      1.  This report will allow users to see the actual cost & usage of their items, versus the theoretical cost.

Troubleshooting:

  1. Confirm COGS accounts are mapped to POS Items by using report:
    1. Standard Reports>F&B>Cost Reporting>POS Items with No COGS accounts
      1.   POS Items without a COGS account mapped, will not have sales reflected in Yellow Dog.
  1. Confirm COGs Accounts are set for all ingredient items by using report
    1.   Standard Reports>F&B>Cost Reporting>Inventory Items with No COGS Accoun
      1. Inventory items without COGS accounts assigned, will not reflect sales, manual adjustments, purchasing or physical inventories in COGS reporting.

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