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    Actual vs Theoretical Analysis
    • 26 Jul 2024
    • 6 Minutes to read
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    Contents

    Actual vs Theoretical Analysis

    • Updated on 26 Jul 2024
    • 6 Minutes to read
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    Article summary

    The Actual vs Theoretical Analysis compares the theoretical cost of certain inventory items or categories against actual data, in terms of both quantities and dollar amounts. The user can drill down into the transactions that make up the numbers and view summary information by category for a Controllable Cost of Goods approach to analysis. 

    Overall, this report provides a deeper dive into the quantity and cost of each menu item to find solutions to limit the biggest item variances. For more information, see Troubleshooting Variances in an AvT Report.

    The Actual vs Theoretical Analysis is not intended to tie back perfectly to Inventory Count/Financials. This report uses one static unit cost for an item for the period, rounds recipe conversions, and does not include any purchases made outside of the AP module, such as paid outs. The main purpose of this report is to provide quantities and approximate costs of each item so that the largest variances can be addressed and reduced.

    Navigation

    1. In the Reports section of the left navigation pane, select My Reports.
      The My Reports screen appears.

    2. At the top of the My Reports screen, select Purch. & Inv.
      The screen generates a list of reports in alphabetical order.

    3. Locate the Actual vs Theoretical Analysis.

    4. Select Customize to adjust the report parameters and run the report.

    Report Parameters

    Field

    Description

    1

    From Count

    Starting inventory count from which to pull data. The From Count and To Count selections create a date range for the generated report displays data.

    2

    To Count

    Ending inventory count from which to pull data. The From Count and To Count selections create a date range for the generated report displays data.

    3

    Key Items Only

    If Yes is selected, the report includes key items only.
    If No is selected, the report includes all items.

    4

    Show Unapproved

    If Yes is selected, the report includes data from unapproved transactions.
    If No is selected, the report only accounts for approved transactions.

    Yes is selected by default. This facilitates accounting staff, allowing them to close the period at their discretion, but operations can continue to run vital reports in real time without waiting for all transactions to be approved.

    5

    Count Time

    Time of day from which transactions are pulled. Options include:

    • Beginning of Day - Uses transactions from the DAY OF the From Count to the day BEFORE the To Count.
      Example: If Count From is set to 02/10/YY and Count To is set to 02/17/YY, the report uses transactions from 02/10/YY to 02/16/YY.

    • End of Day - Uses data from the day AFTER the From Count through the DAY OF the To Count.
      Example: If Count From is set to 02/10/YY and Count To is set to 02/17/YY, the report uses transactions from 02/11/YY to 02/17/YY.

    6

    Item Category 1, 2, 3

    Filters the items that appear in the report by the selected item categories.

    7

    Subtotal By

    Sorts and subtotals item categories. Recommended: Categories 1+2.

    8

    Show % of Sales

    If Yes is selected, the Actual %, Theo %, and Variance % columns appear in the report.
    If No is selected, the report does not display these three columns.

    9

    Sales Account

    Filters the report to show data for selected sales accounts.

    10

    Subtotal By Category

    If Summary is selected, the report displays amounts by category.
    If Details is selected, the report displays amounts by category and by item.

    11

    Efficiency Calculation (Waste)

    Users can choose whether to include or exclude waste in percentage calculations.

    12

    Efficiency Calculation (Donations)

    Users can choose whether to include or exclude donations in percentage calculations.

    13

    Actual Usage Dollar

    Determines whether item costs are based on the:

    • Transaction Cost - Pulls the actual item's cost from either the last invoice or inventory count based on the selected Count Time.

    • Unit Cost - Pulls the item's current inventory cost from the Item record as of the time the report was generated. If using item locations, this option pulls cost data from the store's item location.

    • End Count Cost - Pulls the cost of all items from the ending inventory count used for this report.

    14

    Waste Calculations

    Shows or hides inventory that was documented in the waste count.

    15

    Donation Calculations

    Shows or hides inventory that was documented in the donation count.

    16

    Items to Display

    If Counted Only is selected, the report shows only inventory count items.
    If All Items is selected, all purchased items are included in the report.

    17

    Calculate Based On

    Enables the user to select whether to calculate the report based on the default  Inventory UofM 1 or the item's Reporting U of M. 

    18

    View options

    Provides the user with options to select, save, edit, or delete a report view.
    For more information about these controls, see My Reports: Using My Reports.

    19

    Run

    Generates the report.
    The green arrow button opens a drop-down from which users can Export, Email, or Print the report.

    Report Columns

    The header displays the following information:

    • Begin Inventory - First inventory count included in the report.

    • End Inventory - Final inventory account included in the report.

    • Net Sales - Total net sales for all items in the report.

    Column

    Description

    Operating Reporting Category

    Operating reporting categories broken down into item categories and then into items.

    Count UofM

    Unit of measure for each item as used when conducting an inventory count.

    Unit Cost

    Cost per unit.

    Quantity Usage

    Begin

    Starting quantity of each item as shown in the first inventory count that was included in the report.

    Purch

    Quantity of items purchased for the location.

    Trnsfer

    Quantity of items transferred to or from the location.

    End

    Final quantity of each item as shown in the last inventory count that was included in the report.

    Actual

    Actual number of items used. When expanded, the Beginning Amount, Purchased Amount, Transfer Amount, and End Amount appear.

    Theo

    Theoretical number of items used.

    Var

    Difference between the actual amount and the theoretical amount.

    Waste

    Number of items that were not used and therefore went to waste.

    This column appears only if Show is selected on the Waste Calculations parameter.

    Donation

    Number of items that were donated.

    This column appears only if Show is selected on the Donation Calculations parameter.

    UnExpl Var

    Difference between variance and waste. This column can help users better understand why certain items have larger variances than others.

    Effcy

    The theoretical quantity over the actual quantity used. This shows how efficiently this item is being used.

    Dollar Usage

    Actual

    Actual cost of the item. When expanded, the Beginning Cost, Purchased Cost, Transfer Cost, and Ending Cost appear.

    Theo

    Theoretical cost of the item. If the Actual Usage Dollar parameter is set to Transaction Cost, the amount calculated as:

    • Calculation: ((cost per UofM from the first Inventory Count until the next) multiplied by (number of times the item was sold during that time)) + ((cost per UofM from the second Inventory Count up until the next) multiplied by (number of times the item was sold during that time)) + and so on, based on the time range selected in the report. The total is then divided by the total quantity of transactions.

    • Example: If a Inventory Count was taken on 1/4/21 with the item costing $5.37 per UofM and then the next was taken on 1/11/21 with the item costing $5.43 per UofM, when the report is generated for 1/7 - 1/14, all transactions from 1/7 - 1/10 use the first $5.37/UofM cost, and all transactions from 1/11 - 1/14 use the second $5.43/UofM.
      (($5.37 x (# of items sold from 1/7 - 1/10)) + ($5.43 x (# of items sold from 1/11 - 1/14))) / total # of items sold.

    Var

    Difference between the actual cost and the theoretical cost.

    Waste

    Cost items that were not used and therefore went to waste.

    This column appears only if Show is selected on the Waste Calculations parameter.

    Donation

    Cost of items that were donated.

    This column appears only if Show is selected on the Donation Calculations parameter.

    UnExpl Var

    Difference between variance and waste. This column can help users better understand why certain items have larger variances than others.

    Effcy

    The theoretical cost over the actual cost of items used. This shows how efficiently this item is being used.

    % of Sales

    Actl %

    Percentage of actual sales.

    This column appears only if the Show % of Sales parameter is set to Yes.

    Theo %

    Percentage of theoretical sales.

    This column appears only if the Show % of Sales parameter is set to Yes.

    Var %

    Difference between actual percent and theoretical percent of sales.

    This column appears only if the Show % of Sales parameter is set to Yes.

    Email, Export, or Print the Report

    This report can be emailed, exported, or printed in custom formatting directly from the reporting window. Click here to learn how to send, export, or print this report.

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