Theoretical Cost of Sales Report

Overview:

The Theoretical Cost of Sales Report enables you to determine what your total theoretical cost of sales should be, and what amount of that theoretical cost is coming from each Sales Item based on the quantity sold and the cost of each Sales Item. Each Sales Item Category and Department are summarized. An example of the report is shown below:

Things to know!

This report will only be accessible and visible to users who are given access to this report function.
The Theoretical Cost of Sales report enables you to determine what your total theoretical cost of sales should be, and what amount of that theoretical cost is coming from each Sales Item based on the quantity sold and the cost of each Sales Item.
The Theoretical Cost of Sales report can run in detail (all Sales Items) or in Summary (by Sales Category and Sales Department only).
The Theoretical Cost of Sales report can be run for any Site, desired date range, Department, Category, or all Sales Items.

Report Parameters:

To run a Theoretical Cost of Sales Report, use the Sidebar to navigate to the Cost of Sales Reports menu option and then select the Theoretical Cost of Sales Report from the submenu. Upon selection, a Report Parameters screen like the one below will display:

Site Group: If you have set up Site Groups for reporting, then use the drop-down to select a Site Group.

Site: This filter only displays if you are logged into your company (versus a specific Site). The drop-down enables a search and selection of your desired Site.

Begin Date: From the drop-down calendar, select a starting date range.

End Date: From the drop-down calendar, select an ending date range.

Price Type: You can use the drop-down to select the average, retail, or model price for menu items on this report.

Recipe Department: If you want to run the report for a specific Recipe Department (an example might be the Food Department), you can use the drop-down to select your desired Department.

Recipe Category: If you want to run the report for a specific Category (an example might be Draft Beer), you can use the drop-down to select your desired Category.

Recipe Item Group: If you have set up Recipe Groups then you can use the drop-down to select to run this report for your desired Recipe Group.

Theoretical Cost Method: Use the drop-down to indicate if you want to utilize the Effective Cost or Weighted Average cost for the report. Please click this link for an article about the Costing Methods - FAQs.

Recipe Cost Type: This field will only display if you have enabled Recipe Labor Costs on the Recipes tab in your Company Settings. The drop-down provides the option to run the report for food and beverage costs only, for labor costs, or for both (Prime Costs).

Run Report: Once you have selected your report parameters, click the Run Report button to list the report.

Theoretical Cost of Sales Report - Detail:

Selecting to Run the Report will display a report similar to below:

The Theoretical Cost of Sales Report enables you to determine what your total theoretical cost of sales should be, based on the quantity sold and cost for each Sales Item, and what amount of that theoretical cost is coming from each Sales Item.

For example, in the report example above, the BLT Sandwich Sales Item is contributing $479.25 to total sales revenue and $124.94 to total theoretical costs, based on being sold 63 times. Therefore its Cost % of Department Sales (Food Department in this example) is .79%. Its Cost % of Total Sales (all Departments in this example) is .45%.

In the above example, totals are summarized for each Category and department, and as a Grand Total. In the above example, All Food Categories combined had a theoretical cost percentage of 22.61% for all Food Department sales.

Report Options: For a description of the toolbar provided at the top of the report, please see "Report Options" for help: Report Options link.

When you see this button it means a sort option is available to display the transactions in ascending or descending order (from lowest to highest or highest to lowest). Click on the button to invoke the sort option. Click once for lowest to highest. Click again to reverse the sort to be for the highest to the lowest.

Theoretical Cost of Sales Report - Summary:

Selecting to Run the Report will display a report similar to below:

The Summary Theoretical Cost of Sales Report lists totals for each Sales Item Category and then totals them for the Sales Item Department they are assigned to. In the above example, each Category in the Food Department is listed (Burgers Specials, Daily Specials, etc.).

Next, all Categories are totaled and summarised in the Department they are assigned to (in this example it is the Food Department). Total theoretical Food Cost as a percentage of sales is reported at 22.70%. The Grand Total is higher because the Beverage Sales Item Department is not showing on the report.