Sales and Cost Classes - FAQs

Overview:

Sales and Cost Classes will enable you to report your inventory item, category, and department costs with a comparison to their associated sales. Classes enable you to select an Inventory Department(s) for costs and associate it with a Recipe Department(s) for sales. An example is reporting food costs in dollars and as a percentage of food sales. Another example is reporting wine costs as a percentage of wine sales. Or, if you have one inventory department for food costs and another department for paper costs, you could assign both inventory departments to report as a percentage of the recipe department for food sales.

There are two reports that utilize the Sales and Cost Classes - the Actual Cost of Sales report (which only shows actual inventory costs in relation to sales) and the Cost of Sales Variance Report (which compares the actual cost of sales to the theoretical cost of sales and shows a variance). Any Inventory Categories associated with an Inventory Department will also be included in the reports. For example, if inventory categories for meat, seafood, dairy, and grocery are assigned to an inventory department for food, and the inventory department for food cost is assigned to the recipe department for food sales, then the categories will also be included, Costs are reported in dollars and as a percentage of sales.

Things to know!

COGS-Well support will typically set up your Sales and Cost Classes for you. The configuration for Cost of Sales Classes can be a little confusing. Therefore, if COGS-Well has not already configured classes for you, ask COGS-Well support to help you.
Sales & Cost Classes are not required to be set up. They exist to configure how costs are reported in relation to revenue. If you are not going to look at this information in COGS-Well (many customers rely on their accounting system for this reporting instead), then there is no need to configure Classes.
Classes will control the format of the Actual Cost of Sales Report and the Cost of Sales Variance reports. Both reports reside in Recipes & Sales>Reports. For more information on either s report please see the Actual Cost of Sales Report Link. Or the Cost of Sales Variance Report.
A POS interface is required (our COGS+ product) in order to collect sales for the above two reports. If you are using our COGS-only product, Classes are not applicable.
Once Sales & Cost Classes are set up, each Class needs to be assigned to a Recipe Department. This assignment will determine where the revenue for this Class comes from. A class can be assigned to more than one Recipe Department if the goal is to aggregate revenue from those Departments.
Once Sales & Cost Classes are set up, each Class needs to be assigned to an Inventory Department. This assignment will determine where the inventory cost(s) for this Class come from. If multiple Inventory Categories are assigned to the selected Inventory Department, then each category will be included in the report.
A date range that will calculate your inventory usage cost and sales revenue between two Inventory Count dates is required to run these reports.

Actual Cost of Sales Report:

An example of the Actual Cost of Sales report is below. This report provides a good example of how Classes are used. The Actual Cost of Sales report and the Cost of Sales Variance report can be run in detail (show each inventory item) or in summary (summarizes inventory departments and categories only). The Actual Cost of Sales report below is in summary mode. The Cost of Sales Variance report follows the same vertical format, but it includes columns for theoretical usage cost, theoretical cost %, and variances (see below):

Cost of Sales Variance Report:

An example of the Actual Cost of Sales Variance report is below: This report is similar to the Actual Cost of Sales report, but it adds theoretical cost information and compares it to the actual cost information. This report also has options to run in detail (including inventory items) or in summary. If you have multiple sites, there is a site summary option that lists all sites on the same report. Below is an example of the Cost of Sales Variance report run by Inventory Category Summary: