The system is designed to help those in the hospitality industry manage their purchasing, stock control and time.

As catch-weight means approximate weight, it can be challenging to manage products that fall into these categories. Catch weight products are typically items that are ordered in ‘each’ but invoiced in ‘kg’ such as a ‘leg of lamb’ or ‘side of salmon’. Typically, catch-weights tend to apply to products such as meat, fish and vegetables.

The following document will outline the best practise method for dealing with catch-weight products.
 

Why Are Catch-Weight Products Different?

For catch-weights, orders are usually placed by ‘each’ or the ‘case’ but are invoiced by the kg. This means that it is difficult to define how many kg is equal to 1 each.

For example, if an order for Salmon 2 x 1 EA was placed to a supplier, they can deliver 2 salmon and one could weigh 2.4kg and the other 2.6kg. The invoice will have the value of the salmon in kg’s, in this example 5kg, rather than 2 x 1EA therefore, it is not possible for the system to determine the value of the fish when placing an order as it isn’t a fixed cost due to not being a fixed weight.

There are two ways of dealing with catch-weights in the system explained below.
 

Catch-Weights - Option 1

It is not possible for the system to allow orders to be sent in ‘EA’ and received in ‘kg’. However, it is possible to use a workaround. The workaround is to create the product with a unit of measurement ‘EA’ but to state in the name of the product, what an agreed ‘EA’ will equate to in weight.

In the example given in Fig 1, the Salmon has a unit measurement of ‘1 EA’ but included within the product name is the ‘kg’ equivalent of an acceptable ‘1EA’. This is negotiated with the supplier, for example; it is acceptable for the salmon to be as light as 4kg but no less, and as heavy as 4.2kg but no heavier. This allows a business to know how many salmon to order when projecting portion size per plate etc.
 

Creating Catch-Weight Products Option 1

Fig 1 - Creating a New Product

• Create the product as normal except define what ‘1 EA’ should be equivalent to in the product name; within brackets for clarity.
• The unit size is set to 1 each (EA) so that the salmon will be approved and counted into stock as each.
• Should the purchase order quantity need to be more than one e.g. 6X1 each then this can be added.
• The purchase order cost price is equal to the purchase order quantity.
• The cost price per individual unit is the cost of the unit size. This is often the average price or the maximum cost price, in this case the price of 4.2Kg of fish.
• Add the product to site and inform the users that this is how the products are set up and to pay attention when ordering.

 

Ordering Catch-Weight Products Option 1

 

Fig 2 - Ordering Button

 

• To create a new order go to Site Level > Create new orders.

 

Fig 3 - Order Sheet for The Catch-Weight Product

• Complete the order sheet taking note of the order size column as this indicates what is being ordered- here the order is for 2 x EA but with a description in the name explaining the expected weight of the goods to be received.
• Click the Order Complete button.

 

Fig 4 - Pending Order

• Tick the box next to the order click the ‘Approve’ button and the order will be sent to the supplier.

 

Fig 5 - Purchase Order The Supplier Receives

• The supplier will see the purchase order as represented above in Fig 5.

 

Receiving Catch-Weight Products Option 1

 

Fig 6 - Related Pending Delivery

• To find the pending delivery, click on Stock Management > Pending tab.
• Click on the relevant pending delivery.

 

Fig 7 - Pending Delivery Details

• The delivery receiving process is the same as for any other delivery and should be in line with the business’ defined processes.
• The checks to be completed are; the quantity, the price, the date and the document number.
• Assume two fish were delivered. Since there is a pre-set agreement with the supplier that one salmon can be any weight between 4-4.2kg, then if after weighing the two fish the total weight is no less than 8kg or no more than 8.4kg, it is fair to accept the quantity as being correct.
• If the weight of one fish is 6kg and the other 2kg it is advised that a judgment call is made on the intended purpose of the product as to whether they should be returned or not.
• There may be a discrepancy in pricing as the combined total weight of the fish could be less than 8.4Kg meaning the price should be less than £40 as the weight is less. The actual net cost of the delivery on the system must match the paperwork exactly therefore the price must be adjusted.

The Invoiced Price is Less Than the Order Price

• Click the ‘Add’ button on the delivery note.

 

Fig 8 - Adjustment Item to decrease the Cost

• Use the adjustment item to adjust the cost price to be less by using a negative before the value of the difference.
• Click Next.

 

Fig 9 - Adjusted Delivery Note

• Once the totals are balanced, approve into stock.
• ‘Approve’ this for a delivery note; ‘Approve & Mark for export’ for an invoice on delivery.

The Invoiced Price is More Than the Order Price

Fig 10 - Adding an Adjustment to Increase The Cost

• Use the adjustment item to adjust the cost price to match the value of the difference.
• Click Next.

 

Fig 11 - Adjusted Delivery Note

• Once the totals are balanced, approve into stock.
• ‘Approve’ for a delivery note, ‘Approve & Mark for export’ for an invoice on delivery.
• Since this is an overcharge, i.e. the total weight is no more than 8.4kg but the price is more, then the supplier will owe cash back in this example agreement.
• Raise a credit request for the difference in monetary value

The Delivered Quantity is Less Than the Ordered Quantity

• Click the ‘Edit’ button on the delivery note.

 

Fig 12 - Editing the Quantity Delivered

• If a whole fish was not delivered and the supplier hasn’t charged for it, then edit the quantity to 1 and then adjust the price accordingly.
• ‘Approve’ for a delivery note, ‘Approve &Mark for Export’ for an invoice on delivery.

The Delivered Quantity is Less by Weight

• Click the ‘Add’ button on the delivery note.

 

Fig 13 - Adjusting to The Lower Weight

• If the total of the two fish is less than 8kg the value would usually reflect this.  The price must be reduced to reflect the lower weight; follow the steps above (fig. 8 and fig.9) to adjust the cost of the goods, and a judgment call can be made about whether to send the fish back or not.
• If the total of the fish is less than 8Kg but not by much and a decision has been made to accept the fish; and the supplier has changed the price to reflect this then using the adjustment item is the best way to reflect this.
• ‘Approve’ for a delivery note, ‘Approve & Mark for Export’ for an invoice on delivery.

The Delivered Quantity is More by Weight

• If the total of the two fish is more than 8.4kg the value would usually reflect this.  The price must be increased to reflect the heavier weight follow the steps above (fig.10 and fig.11) to adjust the cost and a judgment call can be made about whether to send the fish back or not.
• If the total of the fish is more than 8.4Kg and the supplier has changed the price to reflect this using the adjustment item is the best way to reflect this. However, since the agreement in this example was for no fish to exceed 4.2Kg each then the supplier should in fact credit back the over charge as this was not the agreement.
• ‘Approve’ for a delivery note, ‘Approve & mark for export’ for an invoice on delivery.
• Raise a credit request for the overcharge in monetary value.

 

Catch-Weight Option 2

• In Option 1 a product is created with a unit of measure of ‘EA’ and a standardised kg equivalent is defined with the supplier; option 2 allows the product to be set up in Kg with the ‘EA’ equivalent detailed within the description.
• Effectively this option provides the reverse of option 1and is preferable when no agreement on average weight can be made with the supplier as it allows specific kg measurements to be receipted into stock. However, this option does require some agreement with the supplier to ensure that the description and not the unit of measure is taken into account when fulfilling an order.
• In the example given in Fig 14, the Salmon has a unit measurement of ‘1 kg’ but included within the product name is the detail of the product required i.e. ‘Side of Salmon – 1 each’; the supplier has agreed to take note of the description and not the ordered unit of measure.

 

Creating Catch-Weight Products Option 2

 

Fig 14 - Creating a Product Catch-Weight in kg

• Create the product as normal and define what is being ordered in the name.
• The unit size is set to 1 kg so that the Salmon will be approved and counted into stock as kg’s.
• Add the purchase order quantity as 1 (if 2 sides of salmon are required 2 products can be ordered)
• The cost price per individual unit is the cost of the unit size. This is the cost of 1kg.
• Add the product to site and inform the users that this is how the products are set up and to pay attention when ordering.

 

Ordering Catch-Weight Products Option 2

 

Fig 15 - Ordering Button
 

 

• To create a new order go to Site Level > Create new orders.

 

Fig 16 - Order Sheet for The Catch-Weight Product

• Complete the order sheet taking note of the name column as this indicates what is being ordered- here 8 sides of salmon are being ordered.
• Click the ‘Order Complete’ button.

 

Fig 17 - Pending Order

• Tick the box next to the order and click the ’Approve’ button and the order will be sent to the supplier.

 

Fig 18 - Purchase Order The Supplier Receives

• The supplier will see the purchase order as represented above in Fig 18.
• The PO shows the name of the product with a description of what product should be delivered
• The order qty shows 8 and the unit 1X1kg showing that 8 Sides of salmon are being requested.

 

Receiving Catch-Weight Products

Fig 19 - The Pending Delivery

• To find the pending delivery, click on Stock Management > Pending tab.
• Click on the relevant pending delivery.

 

Fig 20 - Pending Delivery Details

• The delivery receipting process is the same as for any other delivery and should be in line with the business’ defined processes.
• The checks to be complete are; the quantity, the price, the date and the document number.
• Assume 8 sides of salmon were delivered as requested, when weighing the goods the total amount of fish delivered was 16.7kg (each side weighing just over 2kg).
• The correct weight of salmon must be receipted as the price per kg is entered as agreed with the supplier and when the quantity received is updated then the price will update accordingly.
• Select edit to adjust the quantity received.

 

Fig 21 - Adjusted Delivery

The Invoiced Price is Less Than the Order Price

• Click the ‘Add’ button on the delivery note.

 

Fig 22 - Adjusted Delivery with The Decreased Cost

• Use the adjustment item to adjust the cost price to be less by using a negative before the value of the difference.
• Once the totals are balanced, approve into stock.
• ‘Approve’ this for a delivery note; ‘Approve & Mark for Export’ for an invoice on delivery. 

The Invoiced Price is More Than the Order Price

Fig 22 - Adding an Adjustment to Increase The Cost

• Use the adjustment item to adjust the cost price to match the value of the difference.
• Once the totals are balanced, approve into stock.
• Approve for a delivery note, mark for export for an invoice.
• Since this is an overcharge, i.e. the total weight is no more than 8.4kg but the price is more, then the supplier will owe cash back.
• Raise a credit request for the difference in monetary value.

The Delivered Quantity is more or less Than the Ordered Quantity

• Using this option the quantity of goods delivered will commonly be different to the quantity ordered; therefore users are required to edit the quantity received on each delivery.
• Although quantities will be changed as the product is set up per Kg, at the appropriate per kg price, the cost price should not fluctuate unless there is a legitimate over or under charge from the supplier.

 

Summary

Both Options provide a way to order whole items i.e. Fish, joints of meat etc. which are then invoiced in kg.

• Option 1 – Product is created as ‘1 EA’ and an agreement is reached with the supplier on an acceptable weight for 1 EA, this is the price that is charged for each order (usually the worst case weight of product). Users of the system count and order the product per 1 EA in this scenario.
• Option 2 – Product is created as ‘1Kg’ and description of product is updated with expected product size so that 1 can be ordered when required i.e. ‘Beef Joint – 1 Each’. 1 x 1kg of ‘Beef Joint 1 EA’ is ordered and agreement reached with supplier that they understand that 1kg of ‘Beef Joint 1 EA’ represents a whole Joint. When the goods are delivered and invoiced the user can update the quantity with the appropriate per Kg weight accurately adjusting the stock. As the price entered is per Kg limited cost adjustments will be required although quantity received needs to be adjusted on each delivery.

 

Also See

• How to: Deal with Free Stock