Inventory Items - Vendor and Item Information

Overview:

An Inventory Item is any item that you receive on an invoice from a vendor. COGS-Well automatically adds any item imported from a vendor's invoice, that does not have a Vendor Item Code that already exists, to your database. Inventory Items can include items that you count and track (like meat items) as well as items that are not counted or tracked (like napkins or supplies).

The Inventory Item feature contains multiple tabs and there are quite a few fields on each tab. To keep our articles concise, we have therefore created multiple help articles to cover each tab for the inventory item setup feature. This article will focus on the Vendor Information and Inventory Information sections on the "Item Tab" for Inventory Item Setup. An example is shown below:

Things to know!

An Inventory Item is any item that you receive on an invoice from a vendor.
COGS-Well support does your initial Inventory Item database setup for you. This is accomplished by importing the items from vendor order guides, an Invoice Automation system like Plate IQ, or the COGS-Well invoice scanning software.
When importing invoices, COGS-Well creates an Inventory Item for every item on the invoice that has a unique vendor Item Code.
If you buy the same item from two different vendors, there will be an inventory item in your database for each vendor.
If one vendor sells you the same inventory item, but in two different Pack Sizes (each one having a unique Item Code), there will be an inventory item in your database for each pack size (item code).
When a new Inventory Item is imported from a vendor invoice, it will be immediately and automatically added to your database.
COGS-Well will automatically assign a Standard Pack Pack Size, a Count Unit configuration, and a Recipe Unit configuration for each new inventory item. This is done via the Standard Packaging Definitions library.
To make sure the information for a new inventory item is correct, COGS-Well has a team of auditors that review and "Validate" that all new item information and configurations are correct.
If you are importing invoices, an image of the last invoice that the inventory item was received on will normally be available when you view the item.
This article will focus on the Vendor and Inventory Information sections on the "Item Tab" for Inventory Item Setup. Other articles cover the rest of the Inventory Item Setup configuration.

Add or Edit Inventory Items:

To add, review, edit, or delete Inventory Items, use the Sidebar to navigate to the Manage Inventory Items menu option and then select Inventory Items from the submenu. Upon selection, an inventory item "Find Grid" will display a listing of all of your Inventory Items:

Find Grid Definitions:

+ Add, Export, and Search Options:

The blue "+ Add" button is used to add a new transaction.
The "XLSX" button will export the information on the grid to a spreadsheet.
The search option can find any part of a word or date on the grid. When you start typing your search criteria, the search will be initiated.

Edit/Clone: Click the Edit or Clone button to the right on the row of the Item that you wish to edit or clone. Selecting Clone will duplicate the item and then allow you to make edits to the cloned item.

Special Find Grid Search, Filter, and Sort Tools:

Magnifying Glass Icon: The magnifying glass at the top of each column in the above grid has a search function that enables you to search within that field. If you hover your mouse over the magnifying class you will see options to use to refine your search.
Magnifying Glass and Calendar Icon: If a column has a magnifying glass and a calendar at the top of the column, the calendar can be used to select a date, and if you hover over the magnifying glass after you select a date, you will have options to refine the filter (such as equal to or greater than the selected date).
(All) Incon: Columns that display "All" have a drop-down arrow on the right that is used to select and filter for a specific status. For example, the Active column can be filtered for "Yes" items only.

The Find Grid includes more tools to help you find, filter, or sort the information on the grid according to your requirements. Some of these tools are intuitive, but other helpful tools can easily be overlooked. Please click this link for more information on Find Grid Tools - FAQs.

Item Tab - Vendor and Inventory Information:

This article will focus on the "Item" tab and the Vendor and Inventory Information fields. When you select to add or edit an Inventory Item, a screen like the one below will display:

Vendor and Inventory Information:

COGS-Well is unique (and easy to use) because the Inventory Item foundation is built around Vendor Items (how the vendor names, packages, identifies, and prices the item). It is very important to understand that an inventory item will be created and will exit in COGS-Well for each vendor you buy an item from, and for each different pack size that your vendor uses to supply an item.

For example, a 25-count pack of avocados and a 40-count pack of avocados, from the same vendor, will create 2 inventory items. If you buy avocados from 2 vendors then there will be an avocado inventory item for each vendor.

Vendor Information: Inventory Items originate (are established) in COGS-Well as a result of importing them from either a vendor's system or from an invoice scanning system like Plate IQ or Invoice+. The information displayed here is what has been provided by the vendor. There should be no need to create them manually. New Inventory Items or changes to existing Items are captured when new invoices are imported.
Inventory information: Inventory Information needs to be added to an Inventory Item to assign attributes that are needed for inventory control. Examples are the category, how you count partial packs (count units), and how you use the item as an ingredient in a recipe (measure class and recipe units).
Standard Packaging Definitions: To make it much easier to assign how you count an item and how you use it as an ingredient, COGS-Well has built a "Standard Packaging Definition" library. In this library, we have mapped thousands of vendor packaging definitions to our Standard Packaging Definitions. When a new Inventory Item is imported, if the Vendor Packaging is already mapped to our library, Inventory Item information for Pack Size, Count Units, and Recipe Units will be automatically assigned.

Vendor Information:

The vendor information is imported from an invoice. The pack cost cannot be modified. The vendor name, item name, and pack description can only be modified by a system administrator (because it is the information of record from the invoice).

Vendor: The supplier of the Item.

Vendor Item Name: The name your vendor/supplier uses for the Item. The name is imported from an invoice. This name will default to also be the Inventory Name and the Inventory Item name can be modified (see below in Inventory Information).

Vendor's Pack Description: The packaging description your vendor uses for the Item. The packaging is imported from an invoice.

Pack Cost: The cost (price) you pay your vendor for the Item. The pack cost is imported from an invoice. The cost shown in this field is the last cost you incurred on an invoice for this Item.

Inventory Information:

The Inventory Information is descriptions or configurations specific to your restaurant that you add to a vendor's item. Please see below:

Vendor Item Code: The identification number your vendor uses for the item (often called an SKU or Product Code). Even though this field represents vendor information, it is listed at the top of inventory information because this field can be edited.

The reason this field can be edited is that an AP Automation system (which relies on scanning paper invoices) can occasionally incorrectly translate the vendor item code or assign its product item code. The vendor item code is the key identifier in the COGS-Well system for each unique Inventory Item. Please be very careful when editing this field.

Inventory Item Name: The Inventory Item Name will be displayed and used in data entry, reports, or listings for this inventory item. It will default to be the same as the Vendor Item Name, but you can change it if you think the Vendor's Item Name will potentially confuse other system Users.

For example, a Vendor Item Name for a Pack of 12 cans of Coke (each can containing 12 ounces) might be "12Zcan12FP Coke", which is not easy to interpret so you could change it to something like "Coke - 12 X 12 Fz Cans".

Pack Size: This is how the item is delivered to you. This field is typically automatically completed by the system. COGS-Well searches the Standard Packaging Definitions Library to find a match to the Vendor's pack description and then fills in this field.

Match Pack Size to how your vendor is pricing the item: The size description should match how your vendor is pricing the item. For example, if your vendor delivers your hamburger patties in a box of 44 patties, but is pricing the patties at $1.59 per pound, then the pack size should be "Pound".

Searching Pack Size: If the Pack Size is not accurate, it is best to completely delete the description and then start typing the correct pack size. As you type, you initiate a search of the Standard Packaging Definitions Library and the pack size options will display as shown below.

The pack size search in the example above finds the characters you type in any part of a definition in the library so sometimes you have to scroll up or down in the search window to find the correct pack size in the library. Highlight and click on the pack size in the library that matches your pack size. Once selected, the count unit and recipe unit configurations that are associated with this pack size definition in the library will auto-configure.

Count When: There are three options in the drop-down selection. "Count When Active" means the item will be excluded from the next inventory count if a zero count is entered for the item in inventory counts. A zero count entry will make an item flagged as "Count When Active" inactive until or unless it is received again on an invoice.

"Count Always" means the item will always be included in the Inventory Count entry. "Count Never" means the Item will never be included in the Inventory Count entry. An example of a count never item could be paper items or cleaning supplies that were included on an invoice that was imported into COGS-Well. The most common selection is "Count When Active".

Inventory Category: Inventory Categories are used to roll up the cost of purchases for Items, or the ending inventory values for Items, to calculate values for posting to your accounting system. Each Inventory Category has a General Ledger account assignment for an expense account and an asset account.

Inventory Categories are set up via Inventory > Setup > Inventory Categories. If you are using Plate IQ or a vendor EDI system that includes the GL account associated with an item, then COGS-Well can default to the Inventory Category. Use the drop-down to search and select a Category.

Count Unit: This is an optional field. Use it when you want to also be able to count partial packs (in addition to a full pack) when you take an inventory Count. Please note that a count unit is automatically selected when you select, or COGS-Well automatically assigns, a Standard Pack Size for an item.

It is okay to change the count unit name to something more specific if you desire. The drop-down selection provides a list of common Count Unit descriptions, or type in your name. For example, if you have 5 Lbs as the pack size for an item, and in addition to counting packs for this item, you want to count pounds, then you can define a count unit of "Pound".

Count Units Per Pack: If you defined a Count Unit then you must define the number of Count Units in a Pack. If a Pack is 4 X 1-gallon bottles, and if a Count Unit is gallon bottles, then there are 4 Count Units per Pack. Please note that Count Units Per Pack is automatically configured when you select, or COGS-Well automatically assigns, a Standard Pack Size for an item.

Cost Alert Trigger Percentage: Cost Alerts are generated by a change in the cost of an inventory item. Cost Alerts are based on "Trigger Percentages". A Trigger Percentage is the percentage change amount in an item's cost that you have flagged to receive an Alert.

A default Trigger Percentage for all items is set up in Company Settings. Only enter a value in this field if you do not want to use the default value which is displayed beside this field. For more information on Cost Alerts please click this link: Cost Alerts.

Report Unit: The Report Unit defines how the cost or value of inventory is reported on the Inventory Extension, Usage Variance, Theoretical On-Hand, and Usage Variance reports. The default Report Unit for an Item is by Pack Size. Report Units can also be modified at the Inventory Department or Category level. If you do not want to change the Report Unit for an entire Inventory Department or Category, then you can make the change at the Inventory Item level.

Only Items that have a Count Unit configured will provide the option to change the Report Unit. In the above example, we can change the Flour Item to report on the above 4 reports by Count Unit (Pound) versus Pack Size (25 Lbs) by clicking the drop-down and selecting Count Unit.

Show Last Image and Invoice Snippet:

When COGS-Well imports invoices from an AP Automation vendor like Plate IQ, a digital image of the invoice is included for each item that was received on the invoice. Certain vendors can also provide a PDF of the invoice to COGS-Well when we import invoices directly from a vendor. Having the invoice detail is extremely useful for verifying vendor pack size and vendor item codes. Please view the below display:

Invoice Snippet: Notice that the line item detail from the invoice for this Flour inventory item is displayed at the bottom of the inventory item screen. We can easily verify that the vendor item code is correct (12149) and that the pack size is correct (50 Lbs). This snippet is from the last time this item was received on an invoice. Unfortunately, snippets do not always come across for an item. If there is no snippet, you can still show an image of the entire invoice (see below):

Show Last Image: If you do not have a snippet of the invoice, then click on the "Show Last Image" button to see an image of the entire invoice. The image will open in a tab on your browser and each page of the invoice will require another tab. An example of an invoice image is below:

Special Function Buttons:

The buttons below will display at the bottom of the Inventory Item Tab:

Save - Saves the entry or entries without exiting.

Delete - This button is only available to a system administrator. It deletes the Item from your database. You will be asked, "Are you sure"? Please be aware that deleting an Item will delete it from all Sites. If you delete an item in error, there is an Un-Delete function in Tools. Click this link for more info Un-Delete Function.

Exit - Exits without saving any new entries or edits.

Merge Into an Existing Item: This feature is only available to a system administrator. It will merge the transaction activity for this item into an item you select to merge it with and the current item will be gone from the database.

The Merge option is very powerful and it is not recommended that this function be used unless you are very familiar with when and why to use the merge function. Please see the Merge Inventory Items article for more information.

Show Last Image: Clicking this button will display the invoice image in a separate tab on your browser.