Selecting How it’s calculated on the Profitability Overview widget opens the Profitability Score Details. These details contain a metric-by-metric breakdown of the Profitability Score and a domain-by-domain breakdown of the R365 Adoption Score.
From this screen, users can:
Review the score and scoring direction for each profitability metric.
Review the score for each R365 Adoption Score domain.
Identify the domain limiting the R365 Adoption Score.
Security
The profitability dashboard is available to users with the following permission:
Administration → Dashboards → Home Dashboard → View Home Dashboard
Navigation
Navigation Menu
Locate the Profitability Overview widget on the Home screen.
Select How its calculated.
Details Screen
Profitability Score
Button/Field | Description | |
|---|---|---|
1 | Profitability Score | The 1 to 5 composite score and tier for the selected period. |
2 | Food Cost % | Food cost as a percentage of Net Sales for the period — based on GL accounts categorized as Food or Beverage — and the resulting 1 to 5 score. A lower food cost percentage results in a higher score. |
3 | Labor Cost % | Labor cost as a percentage of Net Sales for the period — based on GL accounts categorized as FOH or BOH hourly labor — and the resulting 1 to 5 score. A lower labor cost percentage results in a higher score. |
4 | Net Margin % | Net margin as a percentage of Net Sales for the period, and the resulting 1 to 5 score. A higher net margin percentage results in a higher score. |
5 | Sales Growth % | Percent change in net sales for the period and the resulting 1 to 5 score. A higher sales growth percentage results in a higher score. |
How the Profitability Score Is Calculated
The Profitability Score is a weighted composite of the four metrics above: Food Cost % (30%), Labor Cost % (30%), Net Margin % (25%), and Sales Growth % (15%). Each metric is scored from 1 to 5 against thresholds set for the location's Restaurant Type, then combined into the single score and tier shown at the top of this screen.
Profitability Score | Tier |
|---|---|
Above 4.5 | Excellent |
3.5 to 4.5 | Good |
2.5 to 3.5 | Fair |
1.5 to 2.5 | At Risk |
Below 1.5 | Critical |
Each location's Restaurant Type (set on the location record) determines which threshold a metric is measured against, since a healthy cost percentage for one type of restaurant can be a warning sign for another. Locations with a recognized Restaurant Type are scored against that type's thresholds. Locations set to Other, or with no type set, are scored against universal default thresholds instead. See Profitability Score Thresholds by Restaurant Type for the full Food Cost %, Labor Cost %, and Net Margin % thresholds for every Restaurant Type. Sales Growth % uses the same thresholds for every Restaurant Type: Excellent above 6%, Good 3–6%, Fair 0–3%, At Risk -5–0%, and Critical below -5%.
Each percentage metric divides a dollar amount by Net Sales for the selected period. That dollar amount comes from GL accounts whose Operational Category matches the metric — for example, Labor Cost % totals only GL accounts categorized as FOH (front-of-house) or BOH (back-of-house) hourly labor.
When a score shows Pending or isn't available
Metric | What's Needed | If It's Missing |
|---|---|---|
Net Sales | An active POS integration posting daily sales. | No score. The location isn't eligible yet. |
Food Cost % | At least one vendor or invoice source connected, and the period closed. | Shows Pending close instead of a score. |
Labor Cost % | Daily sales summaries posting to the general ledger with FOH and BOH hourly labor. | The Labor Cost sub-score is withheld and the Profitability Score is recalculated from the remaining metrics. |
Net Margin % | A closed and posted accounting period with all costs recorded. | Shows Pending close instead of a score. |
Sales Growth % | Two comparable prior periods of history. | Shows N/A rather than a zero. |
GL accounts must have the correct Operational Category set (such as Food, Beverage, FOH, or BOH) to be included in these calculations. Accounts left uncategorized, or tagged with the wrong category, are excluded from the metric, which can understate the amount and the resulting score.
R365 Adoption Score
Button/Field | Description | |
|---|---|---|
1 | R365 Adoption Score | The 1 to 5 score and tier calculated from the domain breakdown below. |
2 | Limiting Domain Callout | Appears only when a domain needs attention. Identifies the lowest-scoring domain currently limiting the R365 Adoption Score, with a link to that domain's row below. |
3 | Daily Sales Approval | Measures whether all daily sales summaries for the period are approved, with the resulting 1 to 5 score. The score is reduced when any daily sales summaries are unapproved. |
4 | Journal Entry | The 1 to 5 score for approval of Standard and Payroll journal entries for the period and location, based on whether those entries are approved. Expands to show additional detail. |
5 | Accounts Payable & Receivable | The 1 to 5 score for accounts payable and accounts receivable transaction approval for the period and location. Expands to show additional detail. |
6 | POS Mapping | Looks at records coming through the POS integration and the resulting 1 to 5 score, based on whether any of those records are unmapped to a GL account. |
7 | Bank Reconciliation | The 1 to 5 score for bank reconciliation completeness for the location. Shows a specific status, such as no bank accounts configured for the location, when applicable. The Location field on a bank account record is optional — populate it so the account is included in this score. |