For sell only items and items used exclusively or made available for AR invoices, additional steps are required to sell those items through the POS and capture the costs using Inventory Counts and Recipe Costing.
Preparing the Items
First, each sell only item must be converted to a purchased item. For sell only items that have already been created in Restaurant365, this conversion requires assistance from the R365 Support team. If the items have not yet been created or imported into Restaurant365, purchased items can be created and used instead of sell only items.
Conversion of sell only items requires an R365 Support ticket that includes the following information:
Restaurant365 URL
Explanation of the request to convert sell only items to purchased items
List of all sell only items that need to be converted
After conversion, additional updates are required for the purchased item records, including:
Assigning cost and inventory accounts
Assigning purchase and inventory units of measure
Adding unit of measure (U of M) equivalence (if necessary)
Updating the Cost Update Method field
Entering the inventory cost amount on the Inventory Cost tab
Assigning item categories (if desired)
Sell only item before conversion:
.png "image(243).png")
Purchased item (formerly sell only) after conversion:
.png "image(244).png")
Capturing Costs of Converted Purchased Items
After all sell only items have been converted to purchased items and the required fields on the purchased item records have been updated, each purchased item has costs directly associated with it. In conjunction with Inventory Counts, the true cost of the item is calculated as the item is used and inventoried going forward. For more information, see Inventory Costing Methods.
1) Add the purchased item to inventory count templates.
Restaurant365 relies on Inventory Counts and AP invoices to determine the current cost of purchased items, so newly converted purchased items must be included in inventory count templates. For instructions on updating templates, see Inventory Count Templates.
2) Perform inventory counts.
After existing inventory count templates are updated to include the new purchased items, future Inventory Counts capture the quantity on hand and update costs based on the selected costing method.
Identifying Theoretical Cost of Converted Purchased Items
In addition to updating the costs and values of purchased items, recipes can be used to identify the theoretical cost of the former sell only items when linked to a menu item on the POS.
1 ) Create single ingredient recipes.
The purchased item can now be used as an ingredient on a recipe. Create a new recipe by hovering over the Item menu and selecting New Recipe. Complete all required fields on the recipe and add the purchased item as the only ingredient.
.png "image(245).png")
.png "image(246).png")
.png "image(247).png")
2 ) Assign the recipe to the menu item.
Once the recipe is complete, it can be assigned to a menu item using the same process as other recipes.
.png "image(248).png")
With the recipe mapped to the menu item, theoretical reporting and costing methods function as designed.