Why are Cost of Goods Sold and Recipes important for F&B operations?
Understanding how COGs and recipes are configured is vital to ensure accurate reporting is provided in Yellow Dog Inventory.
Why are COGS and Recipes Important?
All F&B client will configure COGS during implementation and will be required to maintain COGS mapping. Configuring and maintaining COGS allows food cost reporting at the COGS department/category to be provide. If your team would like to take reporting to the next level, recipes can be created then mapped to POS Menu Items to provide Actual vs Theoretical Report (food cost by item).
What is COGS?
Cost of Goods Sold (COGS) represents the cost of inventory sold during a set period. COGS is used in reporting to determine food cost.
How to Manage COGS
Step 1: Creating COGS Accounts
Standard COGS accounts are agreed upon and configured during implementation. Admin users have the ability to further add/manage COGs accounts by navigating to System Setup/Accounts and selecting the COGS Accounts Tab.
Step 2: Assigning COGS to the Level Interface
This step is also completed during implementation and determines which COGS account the purchasing value for the items in the level will be assigned to when computing the COGS formula. Once configured this will not need to be reviewed or adjusted unless an new inventory department is created.
To assigning COGS Accounts to the Level Interface:
1. Go to Common Setup/Inventory Levels.
2. Click to highlight a level and select “Edit Department”.
3. Select the “Interfaces” tab.
4. Use the “Stores” dropdown to check the box for the store(s) you wish to review and click “OK”.
5. Use the “COGS” dropdown underneath a store to assign a COGS Account.
Each store will have its own COGS dropdown that must be assigned a COGS Account.
6. Click “Save and Close” once you have completed mapping.
Step 3: Mapping COGS Accounts to POS Menu Items
This step determines which COGS account the revenue for the menu item will be assigned to when computing the COGS formula. The POS Item Map will need to be routinely reviewed to assign COGS to any new POS items.
To map COGS Accounts on the POS Item Map:
1. Go to Item Management\POS Item Map.
2. Use the “Stores” dropdown to select the store(s) that you wish to review.
3. Select the option to “Hide POS Items that have COGS already set”.
4. Click to highlight a menu item and select “Set COGS for 1 POS Items”.
5. Click to highlight the COGS department and choose “Select”.
6. Once mapping is completed, select “Refresh” on the top task bar and verify all items were successfully assigned a COGS Account.
How to Manage Recipes
For Yellow Dog to provide actual vs. theoretical reporting by item (food cost), the below must be completed. Recipe management is not required, but will provide your team more detailed reporting.
Step 1: Recipe Creation
See the Recipe User Guide to learn more about Recipe Creation.
Step 2: Map recipes to POS Menu Items.
Once recipes are assigned to a POS Item, the on hands of the ingredients items in the recipes will be depleted at time of sale.
How to Map Recipes to POS Menu Items
1. Go to Item Management/POS Item Map.
2. Select the option to “Hide POS Items that have a recipe mapped”.
This will filter the list to only items that need recipes assigned.
3. Select “show recipe column” if not already selected.
4. Under the “Recipes” column select the “…” button that is in line with the item.
5. Use the search bar to type in the name of the recipe that will be attached to the selected POS Menu Item.
6. Click to highlight the recipe then hit “Select”.
7. Once mapping is completed, select “Refresh” on the top task bar and verify all menu items were successfully assigned a recipe.
8. Recipe Mapping is completed if no items remain after refreshing.
If items are still present, assign recipes and perform a secondary check.
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