Fourth Analytics Adaco: Cost of Sales Closed Period

Overview

This article shows how the information on the Cost of Sales Period tab is displayed and explains how the different values are calculated.

The Cost of Sales Closed Period tab can be found in the Inventory and Requisitions dashboard and is populated with data only if the core Purchasing & Inventory solution (Adaco) has an itemised sales feed from the EPOS system, and recipes are linked to PLUs to register individual menu item sales. The tab should be filtered on a date period in the past. If a period has not yet been closed in the core Purchasing & Inventory system, data will not be available for it.

This article relates to the 'Cost of Sales Closed Period' tab. For 'Cost of Sales' please see Fourth Analytics Adaco: Cost of Sales.

Filters

By default, the tab is filtered on the last 30 days, but any past date period can be selected.

Fig.1 – Filters at the top of the tab

Top Banner Figures

The left side of the banner displays the 'Opening Stock' and 'Closing Stock' (Inventory) figures in monetary terms. On their right, the 'Actual Usage' in monetary terms is displayed, and this figure is used to calculate the 'Actual COGS' percentage.

The cost of goods sold ('Actual COGS') is visualised on the far right side of the banner as a percentage of 'Outlet Sales' revenue (all sales submitted by EPOS), which is displayed to its left. COGS is calculated based on actual consumption of products ('Actual Usage'). 

Fig.2 – Top banner figures 

Example

During a period, you start with 500 bottles of Coca-Cola, have 300 more delivered, and finish with 690 because 100 were sold and 10 were transferred to wastage.

The recipe for a bottle of Coca-Cola has a recipe cost price of £1 and a recipe selling price of £4 (with a PLU linked to the EPOS system).

However, there is a promotion offering a 10% discount on the selling price, so Coca-Cola is being sold at 90% of the normal recipe selling price.

So, the COS summary would be as follows:

Opening to Closing Bridge - Value 

This graphic displays how the 'Actual Usage' figure has been calculated, as well as illustrating the relative size of stock holding to stock movements.

• Blue columns show the stock increasing
• Dark blue columns show stock decreasing
• The size of the column reflects its value

Moving from left to right: 

• The first column shows the value of the opening stock (closing Inventory from the previous Inventory period)
• The next column displays the value of products received
• Then, the net movements of requisitions and transfers into/out of the chosen Location are shown
• The final dark blue column is the net value of stock adjustments made, minus what has actually been used to reach the closing stock value (closing inventory for the chosen period)

When all Locations in a Company are selected to display, the net requisition/transfer value should be zero. If select Locations are chosen, requisitions/transfers and adjustments may be negative or positive values. 

The receiving values are normally positive or zero (unless returns are greater than what has been received), and usage values are normally negative or zero.

Typically, a Location’s Outlets will not have a COS, as no sales are registered against the Outlet, and any stock movements should come only from purchases, transfers, requisitions or adjustments (which will include Inventory variances).

Fig.3 – Opening to Closing Bridge – Value Graph

Actual COS % by Outlet - Value 

This report shows the 10 Outlets with the highest COS% for the filtered date period.

Fig.4 – Actual COS% by Outlet – Value Graph

Actual Usage % by Property – Value

This table displays the same opening-to-closing transactions as Fig.2 and categorises the data by Property (the default listing is alphabetical order).

It also displays the Outlet Sales value, with the COS% in the far-right column.
The total figures are at the bottom of the table, which should correspond to the figures in the banner at the top of the Cost of Sales tab (Fig.1)

Fig.5 – Actual Usage % by Property – Value Table

Actual Usage % by Outlet – Value 

This table displays the same opening-to-closing transactions as the table above but instead categorises the results by Cost Category and Outlet (the default listing is in alphabetical order). 

Fig.6 – Actual Usage % by Outlet – Value Table

This example scenario outlines how to understand which Outlets have the highest cost of sales, and where there may be opportunities to improve this in terms of stock management using the graphs and dashboards outlined above. 

• Select the required date period using the Date Dimension (BusinessDay) filter
• Set the Property or Outlet filter(s) as required
• Review the 'Actual COGS %' summary figure at the top-right of the tab to understand the total figure for the Properties/Outlets being viewed
• From the 'Actual COS % by Outlet – Value' list of Outlets with the highest COGS%, note those which are greater than the overall figure - these are the worst performers
• If viewing more than one Property, Outlets can be compared to their respective Property totals using the 'Actual Usage % by Property – Value' table
• For an overall benchmark, refer to the 'Opening to Closing Bridge Value'
• Use the 'Actual Usage % by Property – Value' and 'Actual Usage % by Outlet – Value' tables to understand if any stock adjustments may be contributing to the higher COGS
• Use the 'Actual Usage % by Outlet – Value' table to drill down further by cost category