Adaco: Variance Between Recipe Sales and Product Depletion

Overview

This article to demonstrates and explains how product units are depleted from Fractional Recipe creations. Understanding this process will allow Purchasing & Inventory (formerly known as Adaco) users to interpret Product Depletion information for the property where the reporting indicates that Recipe consumption is missing, or does not match the Product Depletion values.

Process

When a Recipe is created via a sale, the Product within the Recipe is depleted to allow the creation. The amount of Product that is depleted is controlled in the Recipe Master, which is found in the Recipe Center.

Issues can arise where the amount of Product depleted does not match the expected Recipe sales, or that the Product Depletion is not occurring in the Product Bin Card as expected. 

The cause of these two issues can be attributed to Fractional Recipe sales causing the whole Product Unit to deplete.

Fig.1 below shows the information for a test Recipe. This states that 1 Recipe sold is equal to 1 bottle of the Product. So when 1 Recipe is sold, the Product Bin Card will show a corresponding depletion of 1 Product.

Fig.1 – Corresponding Recipe sold and Product depletion

The Recipe in this configuration can cause issues in the Product Bin Card and other reports, as it is common for some Products such as spirits, to have fractional sales of less than 1.

Fig.2 – Fractional Recipe sale

In Fig.2 there is a fractional sale, as 0.2 units of the Recipe was sold. Fig.3 then shows the Product Bin Card transaction for this sale. It can be seen that 1 unit of the Product has been depleted, but only 0.2 units are required from the Recipe sale.

This has occurred due to the setup in Fig.1. The system cannot divide 1 bottle further, as it is indivisible due to the Recipe setup. The system has depleted the entire unit of the Product to create the Recipe and is left with 0.8 units of the created Recipe.

If 4 more sales of 0.2 units of Recipe are created, no more Product depletions will occur in the Product Bin Card, as the system will use the rest of the created Recipe. As soon as the rest of the Recipe is consumed, and more Product is required, the system will then deplete another 1 unit of Product.

Fig.3 – Product Bin Card transaction

To minimise this perceived variance and improve the accuracy of the reporting, the Recipe can be configured to contain smaller units as shown in Fig.4.

If a Recipe sale of 0.2 units is recorded, the Product Bin Card will again deplete 1 unit of Product. But instead of 1 bottle, it is 5 centilitres, as smaller portions are being sold. This is 7 per cent of the total Product unit that is depleted.

The system still contains 0.8 units of the Recipe, but as the unit has been refined, this will allow a smaller variance between Recipe Consumption & Product Depletion.

Fig.4 – Product Bin Card transaction for a divisible unit