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Affect of Batch Items on the stock reconciliation

Anonymous User
Our food cost controller has done a great job batching items for accurate stock recording and theoretical GP’s. what we are seeing however is that when it comes to looking at the stock reconciliation on enterprise level we are seeing large gains on batch items and large losses on product lines which are included in the batch item thus it is proving incredibly difficult to identify where the true loss lies. is this something we are doing wrong when setting up the batches?
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3 comments

Date Votes
  • Paul Mortensen

    Hi @Jack Richards​ 

     

    Thanks for logging onto the community and sharing your question.

    There are a couple of different reasons as to why your product lines can be impacted by the way a batch has been set up.

    For example, whether the batch has been set to be 'produced on site' or not. Also it can be impacted by yields or just in the way the recipe has been constructed.

    I'd be more than happy to investigate further if you could give me a handful of batches for me to review, and the particular site and stock period where you saw the variances.

    I can then thoroughly look into this for you and feedback.

     

    Many thanks

    Paul

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  • Flavia Cezarino

    Hello Paul, 

    Good afternoon. 

    I have the same issue, the batches are produced on-site. ECSI - Central Kitchen, produce the batch for sandwiches on-site, and transfer the product already made to kiosks or cafes to sell.

    The stock management figures are normally showing a minus figure, I could not pinpoint what was wrong. I have checked recipes, products have been picked up properly it seems.

    I just noticed that the plus values for the batch sandwiches that are transferred are not coming into the calculation on the spreadsheet.

    example week ending 28/06 - if you run the report on Inventory - Stock management - Central kitchen shows

    total = -£1830.00

    but batches at the end of report  total = £1500

    The batches should come into the calculation, we buy products and transfer the total value on stock management should always be £0.00

    Could you please explain why the batches are not coming into account?

    Thank you!

    Flavia

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  • Paul Mortensen

    Hi Flavia Cezarino

    The original post was in regards to the FnB live system, where you are using the newer Inventory system. However, the principles and behaviour are the same. 

    The destination site for the transfer must be set as 'not produced on site' for the batches. If this is the case the following will happen:

    • The sum of the batch (ie Ingredients) of the batch will revert back to the product. For example, if you have entered a count of 5 tomatoes and transferred 5 that were in a batch, your closing qty will show 10, and the costs of the batch go back into their ingredients.
    • At the destination site, the batch will be treated as a product and you will not see a change in the ingredient qty, and the stock variance and costs will be based on the batch only.

    There are a couple of things to consider, does the destination site have the batch and the main recipe linked? If you transfer a recipe (which contains a batch) to another site and that site does not have the batch assigned to it, you may get discrepancies as the system does not know what is in the batch and can not assign costs.

    In addition, if you transfer a recipe with a batch inside (and the batch is 'not produced on site') the batch will be treated and costed as a product, but any other ingredient in the recipe outside the batch, will be added to the sites respective ingredients. Therefore you may partially have the recipe cost present (ie cost of batch) and the other ingredients are costed back to the core ingredient.

    Many thanks

    Paul Mortensen - Senior Solution Consultant P2P&I

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