Actual vs Theoretical Analysis

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.

This report calculates theoretical usage using historical POS (point of sale) and PMIX (menu item) data.

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.

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Report Parameters

Field	Description
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.
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.
Key Items Only	If Yes is selected, the report includes key items only. If No is selected, the report includes all items.
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.
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.
Item Category 1, 2, 3	Filters the items that appear in the report by the selected item categories.
Subtotal By	Sorts and subtotals item categories. Recommended: Categories 1+2.
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.
Sales Account	Filters the report to show data for selected sales accounts.
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.
Efficiency Calculation (Waste)	Users can choose whether to include or exclude waste in percentage calculations.
Efficiency Calculation (Donations)	Users can choose whether to include or exclude donations in percentage calculations.
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.
Waste Calculations	Shows or hides inventory that was documented in the waste count.
Donation Calculations	Shows or hides inventory that was documented in the donation count.
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.
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.
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.
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.

Note About Recipe Expansion
Recipes that are marked as Log Prep that are not Received From Commissary will appear on the AvT report broken out into their individual ingredients. Ex. Each individual item used as an ingredient for the recipe ranch dressing will appear on the AvT in place of the recipe item.
Recipes that are marked as Log Prep that are Received From Commissary at the location of the selected inventory count will appear as a singular recipe item. All other conditions for recipes on the AvT will appear as a singular recipe item. Ex. The recipe item ranch dressing will appear as ranch dressing.
When a recipe is Received From Commissary at a location, the Received From Commissary column on the Location Costing tab of the recipe item record will say Yes.

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.

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