Lesson Three Inventory Management

 This class exposes the students to basic inventory management. It shows them how CostGuard helps to manage the process.

Objectives  Use CostGuard to track where inventory items are located  Use CostGuard during different parts of the Inventory Cycle.

What is Inventory Management  Making sure that the correct inventory items are safely in their proper places for use by the appropriate personnel.

Why do we need Inventory Management?  so that the necessary inventory items are on the premises  so that the necessary inventory items are available when the cooks need them  to decrease expenses by better planning the work involved.

The Inventory Cycle  Ingredients are purchased (order in CostGuard)  They arrive and are put away (receipts in CostGuard)  They are stored for a period of time  Some ingredients are sent to other parts of our establishment

The Inventory Cycle  They are used and sold (Recipes and Sales in CostGuard)  They are counted (Counts in CostGuard)  Reports are generated as to the profitability of the ingredients and accuracy of the Reports.

Step II – Items arrive and are put away  To enter the information into CostGuard, 1. Click Inventory, click Receipts. 2. Use the cursor to move the yellow arrow to the box to the left of the Vendor. Click Select

Step II – Items arrive and are put away 3. A blank Receipt Screen will appear. Enter in the Invoice Number, the Invoice Date, Invoice Subtotal, Receive Date, Freight Charge, and Sales Tax. If you have any comments on the invoice, enter it in the comment line.

Step II – Items arrive and are put away 4. You have three options to fill the Receipt Field. You can use the Fill Icon, click the PO #, or use the Plus button to add the Inventory Items.

Step II – Items arrive and are put away 5. To use the Fill icon, click it. The Bid activation popup will appear. If you have entered Bids into the computer, click yes to use the Bid pricing. If you click no, then you will need to type in a quantity for the new prices to hold.

Step II – Items arrive and are put away 6. To use the PO#, click the three dots at the end of the field. A list of Orders from this Vendor will appear. Use your mouse to move the yellow arrow left of the Order associated with this Receipt. Click Select.

Step II – Items arrive and are put away 7. You can enter Inventory items with the Plus button. A list of Inventory Items from this Vendor will appear. Make sure the yellow arrow is to the left of the Inventory Item. Click Select. The Item code for this Vendor will appear.

Step II – Items arrive and are put away 8. With the Invoice handy, start entering in the # Received Purch\Pack and New Cost for each Inventory Item listed. Don’t forget the decimal points, and check to see if an Item’s price has changed from Bid to Receipt.

Step II – Items arrive and are put away 9. To enter in a quantity, use your mouse to move to the Quantity column. Type in the Default unit first followed by the Other Unit.

Step II – Items arrive and are put away 10. To make it faster when entering in the Quantities, use the AutoAdvance Button located at the bottom of the screen. Click on it, to change the direction, and you can use your enter key to move quickly between the fields.

Step II – Items arrive and are put away 11. When you are finished entering in the Inventory Items, check to make sure that the totals match. The amount in the Received field should equal Invoice Subtotal plus Tax and Freight. If the totals do not match, then there is an error somewhere that you need to corrected.

Step II – Items arrive and are put away 12. When you are finished with a Receipt, click the save icon to save the Receipt. CostGuard will ask you if you wish to continue adding Receipts in, and if you click yes, the Vendor list will appear, and you will start over again. Click no, and you will exit from this part of the program.

Step III - They are stored for a period of time  During this time, the inventory items are on a shelf within the establishment.

Step III - They are stored for a period of time 1. Click Inventory, Click Reports, Click the re-order Tab. Click the button in front of Purchasing Directory.

Step III - They are stored for a period of time 2. Find your inventory item. Look at the column called “Last Priced”. This is the date that the last receipt for this item was entered. If you enter your invoices on a regular basis, then the receipt date is around that time.

Step IV - Some ingredients are sent to other parts of our establishment.  Why do we track Inventory Items going to other parts of our establishment?

Step IV -  To make sure that the proper place is charged for the inventory items that they used. For example – we run a hotel kitchen. We buy juices, fruits and condiments for the bar. The bar should be charged for the items we order for them.

Step IV  CostGuard has two different Methods to track inventory to different departments or entities.  Transfers  Requisitions

How to create a Requisition 1. Click Inventory, click Requisitions. 2. Click on the box next to Requisition Name.

Questions for the Class  Why would you want to differentiate between a requisition and a transfer? Why is this important for your financial statements?

How to create a Requisition 3. Scroll down to highlight the Requisition desired. Make sure that the yellow arrow is to the left of the Requisition. Click Select.

How to create a Requisition 4. Tab down to the Item Name Field. Click the button to bring up a list of Inventory Items. Scroll down or use the Search field to find the Inventory Item that you want to send to the Requisition. Make sure that the is to the left of the Inventory Item. Click select.

How to create a Requisition 5. The Requisition screen will reappear; notice that the Purch\Pack Unit and the Current On-Hand will appear. Tab over to Quantity Adjusted field column. Unit

How to create a Requisition 6. To enter in a quantity, use your mouse to move to the Quantity column.

How to create a Requisition 7. To send the Requisition to the Shopping Cart, click the button. A confirmation popup will appear. Click Yes to add the items to the Shopping Cart. Adding Inventory items to the Shopping Cart is how they are transferred to the Order Screen.

How to create a Requisition  CostGuard will add the items to the Shopping Cart. A blue progress bar will appear in the lower right hand side. If you have a large Requisition, it may take a moment or two. When CostGuard finishes sending the information to the cart, will see a confirmation popup.

How to create a Requisition 9. When finished, click the icon to save the Requisitions.

How to create a Requisition 10. To view Saved Requisitions, go to the Requisition Journal. Click Inventory, click Reports, click Journals and click the button in front of Requisition Journal. The Requisition Journal will show all Inventory items in saved Requisitions.

What did CostGuard Do?  It took the list of items and requisitioned them to a unit within the establishment. These items can be pulled from main storage and then sent to the party or place.

What did CostGuard Do?  CostGuard has a total of the inventory items. This dollar figure can be transferred to that department or used as a costing basis for a party or other event.

Prep Areas  Prep Areas are different from Requisitions.

Step V – They are used and sold.  Other ways of depleting Inventory (having CostGuard recognize that it is used up) is to enter in the recipes and Sales into the program. Some recipes such as bulk or batch recipes such as soup, lasagna, and desserts are made up ahead of time.

Step V – They are used and sold.  CostGuard uses the Recipe Build and the Sales part of the program to handle these depletions.

Conclusion  What is Inventory Management – making sure that the proper product is available when needed. It is making sure that product moves through the restaurant in a timely fashion, and transactions associated with each stage is recorded.