Product movement in Inventory Guide from Recipe Sales

Halima Duncan

• January 18, 2019 00:00

We are looking to better understand the way that product moves through the inventory guides when a recipe is sold.   We have an outlet (A) which requisitions in recipes (e.g. brownie) from outlet (B); the recipes are linked to PLU which are sold by outlet A. The ingredients in the brownie do not exist in outlet A; outlet A only inventories the brownie recipe. However when the recipe is sold, it appears that those ingredients move into the Unassigned location for the outlet A. Outlet A will never have those raw ingredients, and only sells the finished brownie.   Is this expected system behavior and what is the best way to manage the ingredients in the unassigned, since they will not be inventoried by outlet A?   Thanks for your help!

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  Halima Duncan

  • January 18, 2019 00:00

  Thank you for these helpful links and explanations.

   

  One further question--when using "Preparing Outlet" in the scenario originally described, if Outlet A has 0 brownie on hand, and imports a sale for the brownie, is there any impact on the preparing outlet (Outlet B)? Will the system pull inventory from Outlet B to cover the sale recorded in Outlet A?

   

  Much appreciated!

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  Pritesh Patel

  • January 18, 2019 00:00

  Hi {@005D0000005WERQIA4}​ ,

   

  Thank you for your question,

   

  In regards to the recipes, there is a field on the "Advanced" tab within the recipe called "Preparing Outlet", here you can specify the outlet that prepares the recipe (outlet B). With this entered when outlet A requisitions the recipe it will only transfer the recipe over rather then the ingredients within the recipe.

   

  The report that will best show the movement between outlet A and outlet B is the Outlet Variance Report. You can run this report for each outlet and for the selling outlet (outlet A) it will show the movement of the recipe, whereas for the preparing outlet (outlet B) you will see the movement of ingredients and recipes.

   

  The following article has more information about the Outlet Variance Report: https://fc.force.com/customer/s/article/Purchasing-Inventory-Outlet-Variance-Report

   

  The following article will outline the use of Preparing Outlet within the recipe: https://fc.force.com/customer/s/article/Purchasing-Inventory-Recipe-Preparing-Outlets-and-Prepared-Quantities

   

  Hope this helps,

   

  Best

  Pritesh

  Fourth

   

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• 

  Pritesh Patel

  • January 18, 2019 00:00

  Hi {@005D0000005WERQIA4}​ ,

   

  Thank you for your question,

   

  In regards to the recipes, there is a field on the "Advanced" tab within the recipe called "Preparing Outlet", here you can specify the outlet that prepares the recipe (outlet B). With this entered when outlet A requisitions the recipe it will only transfer the recipe over rather then the ingredients within the recipe.

   

  The report that will best show the movement between outlet A and outlet B is the Outlet Variance Report. You can run this report for each outlet and for the selling outlet (outlet A) it will show the movement of the recipe, whereas for the preparing outlet (outlet B) you will see the movement of ingredients and recipes.

   

  The following article has more information about the Outlet Variance Report: https://fc.force.com/customer/s/article/Purchasing-Inventory-Outlet-Variance-Report

   

  The following article will outline the use of Preparing Outlet within the recipe: https://fc.force.com/customer/s/article/Purchasing-Inventory-Recipe-Preparing-Outlets-and-Prepared-Quantities

   

  Hope this helps,

   

  Best

  Pritesh

  Fourth

   

  0
• 

  Halima Duncan

  • January 18, 2019 00:00

  Thank you for these helpful links and explanations.

   

  One further question--when using "Preparing Outlet" in the scenario originally described, if Outlet A has 0 brownie on hand, and imports a sale for the brownie, is there any impact on the preparing outlet (Outlet B)? Will the system pull inventory from Outlet B to cover the sale recorded in Outlet A?

   

  Much appreciated!

  0
• 

  Pritesh Patel

  • January 22, 2019 00:00

  Hi @Halima Duncan​ 

   

  Thank you for your follow up question and glad you found the articles useful,

   

  In response to your follow up question,

   

  The number of portions of the recipe (brownie) sold will be transferred from the preparing outlet (Outlet B) to the selling outlet (Outlet A), if there is 0 on hand of the Recipe (brownie) at the Selling Outlet (Outlet A). This will show as a negative value in the Requisitions column of the Outlet Variance Report in the preparing outlet (Outlet B) and as a positive value in the Requisitions column in the selling outlet (Outlet A).

   

  Hope this helps,

   

  Best

  Pritesh

  Fourth

  0
• 

  Pritesh Patel

  • January 22, 2019 00:00

  Hi @Halima Duncan​ 

   

  Thank you for your follow up question and glad you found the articles useful,

   

  In response to your follow up question,

   

  The number of portions of the recipe (brownie) sold will be transferred from the preparing outlet (Outlet B) to the selling outlet (Outlet A), if there is 0 on hand of the Recipe (brownie) at the Selling Outlet (Outlet A). This will show as a negative value in the Requisitions column of the Outlet Variance Report in the preparing outlet (Outlet B) and as a positive value in the Requisitions column in the selling outlet (Outlet A).

   

  Hope this helps,

   

  Best

  Pritesh

  Fourth

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• 

  Halima Duncan

  • January 30, 2019 00:00

  Hi {@005D000000AMiECIA1}​ :

   

  Thanks for the further detail. The way we are currently set up, it is a very confusing to look at the variance report and understand which items we need to investigate (for variances), since the individual ingredients from the recipe appear on the report with a negative variance (from value in the recipe column), as do the recipes themselves. When we run the variance report with all items (including products and recipes) we also see the recipes sold and depleted via recipes. However the sales don't cancel the recipe use, so for some recipes we still show variances despite sales being added back.

   

  Our preference had been to not use preparing outlet for these 2 outlets, because they are totally separate revenue and cost centers. Our logic has been that we preferred to require all product movement to be explicit and deliberate, and processed only when an outlet requisition was posted, rather than have that occur automatically by the system. Outlet B is a totally separate revenue center from Outlet A, and we wanted to be able to track product movement very intentionally.

   

  That being said, would the best practice in our scenario be to use a preparing outlet for all items that are prepared by outlet B and sold by outlet A?

   

  Appreciate the discussion.

   

  H

   

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• 

  Halima Duncan

  • January 30, 2019 00:00

  Hi {@005D000000AMiECIA1}​ :

   

  Thanks for the further detail. The way we are currently set up, it is a very confusing to look at the variance report and understand which items we need to investigate (for variances), since the individual ingredients from the recipe appear on the report with a negative variance (from value in the recipe column), as do the recipes themselves. When we run the variance report with all items (including products and recipes) we also see the recipes sold and depleted via recipes. However the sales don't cancel the recipe use, so for some recipes we still show variances despite sales being added back.

   

  Our preference had been to not use preparing outlet for these 2 outlets, because they are totally separate revenue and cost centers. Our logic has been that we preferred to require all product movement to be explicit and deliberate, and processed only when an outlet requisition was posted, rather than have that occur automatically by the system. Outlet B is a totally separate revenue center from Outlet A, and we wanted to be able to track product movement very intentionally.

   

  That being said, would the best practice in our scenario be to use a preparing outlet for all items that are prepared by outlet B and sold by outlet A?

   

  Appreciate the discussion.

   

  H

   

  0
• 

  Pritesh Patel

  • February 01, 2019 00:00

  Hi @Halima Duncan​ 

   

  Correct, the best practice in your scenario would be to use the Preparing Outlet functionality within Recipes,

   

  This will give you a much better product/recipe movement between Outlet B who prepare the items and Outlet A who actually sell the items.

   

  I would recommend testing this with one recipe to start with and entering a Preparing Outlet within the Recipe and once that item is sold in the Selling Outlet, run the Outlet Variance Report and you will see much better tracking of the movement.

   

  Let me know how it goes,

   

  Best

  Pritesh

  Fourth

   

  0
• 

  Pritesh Patel

  • February 01, 2019 00:00

  Hi @Halima Duncan​ 

   

  Correct, the best practice in your scenario would be to use the Preparing Outlet functionality within Recipes,

   

  This will give you a much better product/recipe movement between Outlet B who prepare the items and Outlet A who actually sell the items.

   

  I would recommend testing this with one recipe to start with and entering a Preparing Outlet within the Recipe and once that item is sold in the Selling Outlet, run the Outlet Variance Report and you will see much better tracking of the movement.

   

  Let me know how it goes,

   

  Best

  Pritesh

  Fourth

   

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