Feature Overview: Actual vs. Theoretical Module

Feature Overview: Actual vs. Theoretical Module

Actual vs Theoretical (AvT) compares two numbers over the same time period:

Theoretical Usage

This is what the system expects you to use.

Yellow Dog calculates this from:

  • POS sales

  • Recipes mapped to POS items

  • Ingredient quantities and yields in each recipe

When a menu item sells, Yellow Dog removes the ingredients listed in its recipe. This creates the expected (theoretical) usage.

Actual Usage

This is what was really used.

Yellow Dog calculates this based on:

  • Beginning and ending physical inventories

  • Invoices (purchases)

  • Transfers

  • Manual adjustments (waste, spoilage, breakage, production)

This shows how much inventory actually left your shelves.

Variance

Variance is the difference between actual usage and theoretical usage.

If the numbers don’t match, something needs attention. Reviewing variances helps you find the cause.

AvT results are available after you complete and commit a physical inventory. That physical acts as the checkpoint for the analysis.


 

For AvT to work correctly, the following must be in place:

Recipes

  • Recipes must be created and kept up to date.

  • Ingredient quantities and units of measure must be correct.

  • A Yield must be entered on the Yield/Used By tab.

  • The correct recipe behavior (Batch or Production) must be selected.

POS Mapping

  • POS items must be mapped to recipes in Item Management > POS Item Map.

  • If a POS item is not mapped, the system cannot calculate theoretical usage for it.

COGS Accounts

  • Inventory items must have COGS accounts assigned (usually at the level).

  • POS items must be mapped to COGS departments.

Physical Inventories

  • Physical inventories must be completed regularly.

  • AvT compares activity between two Full Physicals.

  • Cycle counts are not used for AvT reporting.

Purchasing

  • All invoices must be committed.

  • Transfers and returns must be entered when they occur.

Manual Adjustments

  • Waste, spoilage, breakage, and production adjustments must be entered consistently.

  • If adjustments are not entered, variances will include both sales usage and unrecorded waste.


 


Recipe-Based Usage Tracking
Calculates expected ingredient usage based on POS sales.

Variance Visibility
Shows where actual usage differs from expected usage.

Batch and Production Recipe Support
Works with both ingredient-driven recipes and in-house produced items.

Uses Existing Workflows
Pulls data from physical inventories, purchasing, POS sales, and manual adjustments.

Trend Tracking
Helps you review results over time to spot patterns and ongoing issues.

Flexible Setup
You can start with a few recipes and expand as your processes improve.

Follow these best practices to get accurate and useful AvT results:

Complete Clean Physical Inventories

AvT depends on accurate physical counts.

  • Perform Full Physicals on a consistent schedule.

    • Include all active items every time. This ensure consistent cost calculations 

  • Review and resolve large variances before committing.

  • Do not rush the review process.

Keep Recipes Accurate

Recipes drive theoretical usage.

  • Confirm ingredient quantities match real portions.

  • Review yields regularly.

  • Update recipes immediately when portion sizes change.

Map POS Items Promptly

  • Map all new POS items to recipes as soon as they are added.

  • Review Item Management > POS Item Map regularly for unmapped items.

Enter Waste Consistently

  • Record waste throughout the month, not just at month-end.

  • Use clear references when entering Manual Adjustments.

  • Make sure managers understand what should be recorded as waste.

Commit Invoices on Time

  • Enter and commit invoices consistently.

  • Avoid leaving invoices open at month-end.

  • Verify transfers and returns are completed.

  • Look for patterns across multiple physical inventories.

  • Focus on repeated variances, not isolated ones.

  • Use AvT as a coaching tool, not just a reporting tool.

Start Small and Expand

  • Begin with high-cost or high-volume recipes.

  • Add more recipes once processes are stable.

  • Avoid full rollout until your core workflows are consistent.




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