Navigation: Analyses >> Foodcost >> Food cost analysis by category
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In Inpulse, positioning yourself between two inventory points is essential to obtain a reliable real cost of goods (COGS) and correctly analyze stock variances.
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Without both a starting and ending inventory, stock variation cannot be calculated, and the COGS displayed will be highly inaccurate.
1/ Why position yourself between two inventory points?
Stock variation is at the heart of real COGS.
Real COGS is not limited to purchases made during a period.
It must reflect what was actually consumed, taking into account the evolution of your stock.
Direct consequence:
If stock variation is missing:
Inpulse only displays purchases
Actual consumption is misestimated
Real COGS is distorted
2/ How to identify inventory points in Inpulse
In the analyses, green dots ๐ข indicate the dates when an inventory was recorded.
For reliable analysis:
Select a period that starts on a green dot (starting inventory)
And ends on another green dot (ending inventory)
3/ What happens if you are not between two inventories?
Case 1: No inventory during the period
Real COGS = purchases only
No stock variation calculated
Data not usable
Case 2: Only one inventory (start or end)
Stock variation cannot be calculated
Common situation when new items are launched mid-period
Case 3: Items without a starting inventory
Even with an ending inventory:
If a supplier ingredient was created mid-month
And no initial inventory exists
๐ Stock variation cannot be calculated for that item.
Solution: Create an initial inventory at 0 on the date of the last existing inventory.
4/ Best practices
Inventory frequency:
Minimum: one complete inventory at the start and end of the month
Ideal: weekly or bi-monthly inventories for higher accuracy
Managing new items:
For every new supplier ingredient:
Create an initial inventory at 0
On the date of the last existing inventory
Key takeaways:
Without two inventories โ no stock variation
Without stock variation โ no reliable real COGS
