Craftable's Actual vs Theoretical Quantity Details (AvT) Report allows you to track variance on the system, based on the discrepancy between what you should have and what you have in stock. Use this article to learn more about the report.
At a basic level, this report will flag any of the following instances, as they will result in having Variance on an item.
- Over-pouring drinks or over-portioning/serving dishes
- Items being stolen
- Missed Invoices
The above instances will all result in Negative Variance on the report, but you can also get Positive Variance on items. This is typically the result of an item being miscounted on one of the audits, received incorrectly on an invoice, or a mistake in entering a recipe, resulting in the depletion calculation being incorrect.
How does it work?
This report uses two audits (these are displayed as Start and Actual Inventory on the report) and compares what you should theoretically have in stock at the end of the period to what you have in stock. The Theo Inventory value is calculated by taking the Starting Inventory number (which is the count of the item in the first Audit), adding the count of what was purchased and transferred during the period, and then subtracting anything that was sold via POS (POS Depletions column) or Spilled (Manual Depletions column). The Actual Inventory number is the raw count of what was entered on the last audit, and the Variance Qty is calculated by subtracting the Theo Inventory number from the Actual Inventory.
Requirements for an Accurate Report
- 2 Audits
- All invoices processed during the date range
- All POS buttons and Modifiers mapped (and if buttons mapped mid-period, depletions re-run back to the start date)
- Best Practices: Enter all spillage and waste as a Manual Depletion
Reading the Report
Below is an example of 3 different items on the AvT Details report, Absolut Vodka, Absolut Citron, and Absolut Mandarin.
Absolut Vodka 1L
Looking at the Absolut Vodka 1L you can see that we started with 2 bottles, purchased 3 bottles, and then based on our recipes that include this item, we depleted 2.54 bottles over the period. This gives us a Theoretical Inventory amount of 2.46 (2+3-2.54=2.46). But on the ending audit, we counted 2 bottles. The Variance Qty is calculated as 2-2.46, resulting in a Negative Variance of -.46, or other words nearly half a bottle is missing.
So what could this mean?
- Over-Serving - This could mean that your staff is over-pouring their drinks - they're using more Absolut Vodka than they're supposed to be, which has resulted in you using 3 whole bottles over the period when you should have used only 2.54 if the staff were pouring the correct amount.
- Unmatched/Incorrect Recipes - Or perhaps your staff are pouring the correct amount but your depletions are incorrectly low. Maybe a recipe has the wrong volume entered, or there's a button or modifier in your POS that uses this item that isn't yet matched to a recipe. If this is the case you should correct the recipe, or match up the POS button/modifier, reopen your last audit, rerun depletions over the period, and then close the last audit again.
- Incorrect Counts - Perhaps the POS Depletions are correct, and your staff are also pouring the correct amount, it could be that there's .46 of a bottle somewhere that was mistakenly not counted during the last audit. If this is the case you would want to reopen your last audit, correct the count on the Absolut Vodka, and then close the audit.
Absolut Vodka Citron 1L
Looking at the Absolut Vodka Citron 1L you can see that there were 5 bottles when it was first counted, we didn't purchase or sell any over the period, and then on the last audit, we counted 0 bottles, resulting in a variance of -5, which is to say 5 bottles that mysteriously disappeared.
So what could this mean?
- Incorrect Counts - As there is nothing counted for the item on the ending audit it seems likely that perhaps it was missed. This would be the first place we would recommend checking as a count of 0 is suspect. Perhaps there are 5 bottles stashed somewhere that were missed during the audit? This would account for all of the variance if so.
- Unmatched/Incorrect Recipes - There are 0 depletions against the item as well. If this is an item that you know is included in your recipes, then depletions of 0 are a red flag that either the recipe hasn't been built yet, hasn't been matched, or isn't being rung incorrectly.
Keep in mind if you want to see further details about the item, just click on the item's name in the Item column. Here you'll see the drill-down data, including the counts in each storage area, as well as the purchase, transfer, and depletion data.
Column Key
Start - Physical counts from the first audit in the selected period.
Purchases - Inventory brought in by correctly entering vendor invoices during the viewed period. The field is amended as soon as an inventory line item is added and saved to a vendor invoice.
Transfers - Inventory transferred in or out during the viewed period.
Depletions - This includes both POS Depletions (Depletions based on your POS Item Mapping), as well as manual Depletions, including waste logging.
Actual Inventory - Physical counts from the last audit in the selected period.
Theoretical Inventory - Start + Received + Transferred - Manual Depletions - POS Depletions
Variance - Calculated based on Actual - Theoretical Inventory
Variance % - Calculated based on (Variance Quantity / Theoretical) * 100%
Replacement Value - Calculated based on Variance * CU Price
Prep Items in Actual vs Theoretical Quantity Details Report
One of the most useful features of this report is that you can run the report with the Prep Items inline, nested under the raw goods like the picture below:
One thing to note is the number you see next to the prep item is the amount of the raw item's count unit within that recipe. (Note**: If you specified a yield on your recipe or the item that the prep item was built from, that yield will be added back into the number you see to ensure it totals to the raw good before it's prepped.)
If you add the Prep Item amount along with the raw good amount, it should total the main line before the indent.