Production Features - FAQs

Overview:

Production is a way to track the quantity or "batches" made and used for a Recipe Item you prepare. If a Recipe Item is flagged for Production, it is referred to in COGS-Well as a "Production Item".

Typically, Production Items are what COGS-Well references as Prepared Item Recipes ("Prep Items"). Prep Items are recipes made in batches that are not sold, but rather used in recipe items that are sold. An example is Chicken Salad which is prepared in a 5-gallon batch and then used as an ingredient in a chicken sandwich or chicken salad recipe that is sold.

The primary reason to enable a recipe item for production is if you want to track the usage (actual and theoretical) for that recipe item versus its ingredients. COGS-Well treats a Production Item just like an Inventory Item for tracking and reporting.

Purpose of Production Tracking:

If you flag a Recipe Item for Production, it will be treated like an inventory item in COGS-Well. When you enter the quantities produced (made) for a Production Item, and you count the Production Item when you count inventory, COGS-Well will track the actual usage (beginning inventory, + amount produced, +/- transfers, - ending inventory = usage) of a Production Item.

If Chicken Salad is a Production Item, COGS-Well can also compare the actual usage for Chicken Salad to the theoretical usage (based on sales and the Sales Item recipes that Chicken Salad is an ingredient in) and report your actual versus theoretical usage variance for Chicken Salad.

It is important to know that when production counts are entered, the ingredients for each Production Item are depleted (for theoretical on-hand and usage calculations) based on their portion and the amount produced. When a recipe with a production item as an ingredient is sold, the production item is depleted for theoretical calculations (it is treated just like an inventory item).

How Does Production Work:

The following provides a summary of the primary production features and it includes links to articles with more detail on each feature.

Company Settings:

If you wish to use Production, it must first be enabled on the Recipes Tab in your Company Settings. An example is shown below:

Flag Recipe Items for Production:

After Production is enabled in your Company Settings, the Recipe Item Setup feature will include a field to flag a recipe item for production. Please note that any item you want to flag for production must first be flagged for "Recipe is Counted". An example is shown below:

Add Shelf Life (Optional):

The Shelf Life for a production item is how long you will keep it (in the number of days) before you no longer consider it useable. When an on-hand amount is calculated for suggested production, the Shelf Life will then factor into the calculation for that item (it subtracts items that will expire from the calculated on-hand). The use of Shelf Life is optional.

Production Groups (Optional):

You can optionally create and assign Production Items to Production Groups. You can select a Production Group when you run the Production Worksheet or Enter Production. A production item can be assigned to multiple Production Groups. Please note only items flagged for Production can be assigned to Production Groups. Please click this link for more information on Production Groups:

Usage Projection (Optional):

To calculate a Usage Projection, a Suggested Quantity Type for Production will need to be created. There is an option to include Par Levels in a Suggested Quantity Type. Please click this link to Usage Projections for more information. A link to an article on Suggested Quantity Types is included in the Usage Projection article.

Production Worksheet:

The Production Worksheet allows you to record your production quantities. Please click this link for a detailed description of the Production Worksheet. An example of the Production Worksheet is shown below:

You can optionally create Suggested Quantity Types to make the Production Worksheet include projected and suggested production quantities for the Production Items. An example is below:

Production Entry:

When production is enabled in your Company Settings, a feature to Enter Production will be added to the Recipe & Sales Entry menu. An example is shown below.

The recipe items that are flagged for production will show up on the production entry grid. Please click this link for a detailed description of the Production Entry feature. Please note that for the example entry below, that suggested production is being used.

The values in the On Hand or Projected columns on the entry grid above can be drilled down to show how the suggested quantity was calculated. An example is below:

Other Things to know

The primary reason to enable a recipe item for production is if you want to track the usage (actual and theoretical) for that recipe item versus its ingredients.
The Production features are enabled in your Company Settings. The default setting is not enabled.
A Recipe Item must be flagged to be counted for the "Production Entered" field to display.
Production Items can be inventoried, transferred between Sites, used in other recipes, and entered in Waste Counts.
There is an option to calculate Suggested Quantities to produce (prepare) for production items.

Theoretical On-Hand and Usage Calculations: When production counts are entered, the ingredients for each Production Item are depleted (for theoretical on-hand and usage calculations) based on their portion and the amount produced. When a recipe with a production item as an ingredient is sold, the production item is depleted for theoretical calculations (it is treated just like an inventory item).

Production Yield: There is an option in Company Settings to enable Yield in Production Entry. Because a Recipe Item's Batch Size is not always going to perfectly match the actual batch size that resulted from making (producing) the Recipe Item, Yield enables you to adjust for any differences. Please see the example below:

Production Yield %: In the above example the percentage of the Batch Size that was yielded for each Production Item after it was Produced is entered in the Yield % column. For example, the yield after production for 1 batch of Chicken Salad was 3 gallons. 109% was, therefore, entered (3 divided by 2.75) as the Yield %. By entering yield %, the usage and cost for Chicken Salad will be adjusted for the actual yield. You can see the Batch Cost adjustment for each Production Item in the Yielded Cost column.