On this document we'll create an example about Inventory and Cost tracking. First of all I want to talk about key points of SambaPOS inventory system.
Let's see a simple example. We'll start by creating inventory items.
We add new inventory items from Management > Products > Inventory Items list. We'll create items for Hamburger recipe. The most important part is the Unit configuration. Base unit is the smallest unit of the item and Transaction Unit is the unit we generally use. For example the smallest unit of the tomato is GR and we purchase tomato with KG transaction unit. If I'll use only base unit I have to leave transaction unit as zero. After saving it I'll create two more inventory items named “Bread” and “Ketchup”.
While creating Bread card I configured the base unit as Piece and there is 10 breads in one pack.
These are the required inventory items for producing Hamburger. Now we'll create a recipe from Products > Recipes > Add Recipe.
I named the recipe as Hamburger. When I write hamburger in “Product” editor and press Tab key SambaPOS will fetch all available portions and fill the portion part if there is only one portion configured for that product. Recipes are portion based. If you have more portion options for hamburger you have to configure recipes for all portions.
It is possible to add inventory items such as salt, pepper or similar small stuff but instead of tracking inventory for these items you can use “Fixed Cost” setting. SambaPOS will add this amount to the cost of all sold portions.
That's all we need to do for tracking inventory.
Next we'll start a new work period and create a new Transaction Document. We use transaction documents for increasing inventory and defining the cost of inventory items. We can only create transaction documents in a work period.
We add items with insert key or by clicking “Add Line” command. After entering quantities and prices we save it.
Now switch to POS screen and sell 5 hamburgers. It will decrease inventories as configured on recipe. We can display “Inventory Report” for updated numbers but for more details we'll use “End of day Records”
End of day Record is a special type of document that automatically creates while ending a work period. This document fixes periodic inventory and cost numbers. We can't create this document in a work period but we can use this document for checking actual numbers.
Let's see the current End of day Record.
This is the result when we sell 5 hamburgers. In Stock column is empty now because this is the beginning record. On further work periods we'll see the inventory numbers carried from previous work period. It means this column shows the inventory state when we started the work period.
Inventory Prediction shows the inventory numbers according to sales and transactions. As we talked about it before these numbers are just a prediction. If you count some of your inventory items and if there is a difference you'll enter physical inventory numbers on “Current Inventory” column and SambaPOS will do the rest :) Let's see the “Costs” page.
This is the cost of Hamburger product. “Cost Prediction” is the cost amount calculated from Inventory Prediction numbers. If we update physical inventory numbers we'll see the updated cost on “Current Cost” column.
As I've stated before you can't save this document because SambaPOS should create it automatically when work period ends. Now close this document and end the work period to see how it automatically generates.
As screenshot shows it automatically created. Now double click on it to display the generated numbers. For 5 portions of Hamburger 600gr. (0,6 KG) Hamburger meat used and we should have 9,4 KG meat on hand. For example we weighed meat and there is physically 9 KG meat. To fix that we'll enter 9 to Physical Inventory column. It will decrease the Hamburger Meat inventory to 9KG and it will also distribute the cost of 400 gr difference to Hamburger product.
We have only Hamburger Product so this difference will affect only Hamburger Product. If we'll configure more products that uses “Hamburger Meat” inventory (Cheese Burger, etc) their cost will increase accordingly. Let's see how it reflected to Hamburger cost.
According to recipe Hamburger cost per portion is $2,46 but it's real cost is $3,66. Let's see the calculation in more detail. The difference was 400GR. 1KG meat costs $15 so the cost of 400GR is $6. We sold 5 hamburgers. 6/5= $1,2 and 2,46 + 1,2 = 3,66.
Save this document to store changes. When we start a new work period SambaPOS will calculate further amounts from these numbers.
Finally this is the cost report for the work period. The cost of everything is $18. If you include multiple work periods in this report you'll see the average cost.
You can visit our forum for your questions about this topic.