Why COGS
are inaccurate:
If COGS
numbers are appearing incorrectly in Yellow Dog one of the following will be the
cause:
- Invoices
were not entered in Yellow Dog
- POS
Sales are missing
- Inaccurate
Physical Inventory Counts
- Physical
Inventories were not committed
- More
than one Physical was performed
- Waste
Adjustments were not recorded
If COGS
numbers are appearing incorrectly in accounting one of the following will be
the cause:
- Invoices
were not entered into accounting software
- 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:
- 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
- The
Purchase Order to Receipt to Invoice Report can be used to quickly identify
purchasing documents that have not been fully invoiced.
Sales:
- 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:
- 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.
- Ensuring
that all active items are being included in physicals will keep costs and on
hand values accurate
- Tips & Tricks: How to confirm all
items are being included in your physical
- 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
- The Physical Inventory Worksheet can
easily be printed to perform recounts
- Printing Physical Inventory
Worksheets