Inventory Depletion - FAQs
Overview:
If you want to enter, track, and report items that are depleted from inventory for known reasons such as donations or promotional activities, then COGS-Well has Inventory Depletion features that can be enabled for this purpose.
Inventory, Combined, and Recipe items (that are sold or not sold) can be depleted. After depletion counts are entered, depletion reports can be run, and there is a journal report and an export option for accounting.
Company Settings:
Inventory Depletions must be enabled for the features to become available. To enable the Inventory Depletion features, navigate to Company>Setup>Company Settings.
After selecting Company Settings, you will land on the General tab of Company Settings as shown below:
Company Settings - Options: The enable inventory depletion feature checkbox is highlighted in the options column in the example above. Put a checkmark in this box to enable depletion features.
Company Settings - Accounting Export: Once Inventory Depletion is enabled, there will be an option in Company Settings to export depletions to your accounting system. An example is shown below. Select the Accounting Tab and then check the box to enable depletions export if you want to export depletions to your accounting system:
Inventory Depletion Groups:
To organize, simplify, or control the entry of inventory depletion, you can set up groups of items that you commonly deplete at the same time. If a Depletion Group is included in the criteria when a Depletion Count is being entered, then the items in a Depletion Group will populate the entry grid. If you want to restrict what items can be entered in a Depletion Count Entry, you will need to put these items in a Depletion Group and then assign the Group to a Depletion Type (as explained below).
To Access: Navigate to Inventory>Setup>Inventory Depletion Groups and select Inventory Depletion Groups. A "find grid" like the example below will display. The find grid will show all Inventory Depletion Groups that have previously been set up:
Add or Edit: To view or edit an existing Inventory Depletion Group, either double-click or select "edit" on the row for the Group name you want to edit or view. To add a new Group, click the blue add button. at the top and center of the find grid. Below is an example of the Inventory Depletion Group setup display:
Group Name: You can create any name for a group. It is good to pick a name that your end-users will recognize.
Active: Active will be the default when you add a new group. If you only use a group at certain times of the year, you can make an existing group inactive by eliminating the check mark in this box.
Available to All Sites: If you operate multiple sites and this group is applicable to all sites, then check this box. If it is specific to some sites only, then leave this box blank and a “Sites” tab will appear that has a dual list box where you can select the applicable sites.
Items Tab: The Items tab is used to select items for the Depletion Group via the dual list box in the example below. Inventory, Combined, and Recipe Items can be selected. Please note that you can click, hold, and drag selected items to be in a specific order (sequence order) if desired. This sequence order can then be selected for Depletion Count Entry.
Inventory Depletion Types:
Inventory Depletion Types are required. They are used to control whether users can add depletion counts for items that are not assigned to a Depletion Group, to assign a GL account number for the total value of a Depletion Count Entry, and to assign an Inventory Depletion Group to the Inventory Depletion Type.
To Access: You must set up at least one Inventory Depletion Type. Navigate to Inventory>Setup>Inventory Depletion Types and you will see a "find grid" like the example below. The find grid will show all Inventory Depletion Types that have previously been set up.
Add or Edit: To view or edit an existing Inventory Depletion Type, either double-click or select "edit" on the row for the Type name you want to edit or view. To add a new Type, click the blue add button at the top and center of the find grid. Below is an example of the Inventory Depletion Type setup display:
Name: Any name can be used. Use a name that helps you recognize the Type. If a Depletion Type is directly correlated to a Depletion Group, it can be helpful to use the same or a similar name.
GL Account: Use the drop-down to search and select a GL account to associate with this Depletion Type.
Item Group: You can optionally, associate a Depletion Group with a Depletion Type. This way when a Group is selected for Depletion Count Entry, the Depletion Type criteria will also be in effect.
By Item Sequence Order: If a Depletions Group was selected, the Items selected for the Group will print in the order they appear on the selected item display in the Group Depletion Set Up.
Allow Additional Items to be Added: If you do not want a user to enter depletion counts for items that are not defined in an Inventory Depletion Group, then do not check this box. If this box is not checked, a user entering counts can select items using the "+" button on the count entry grid to enter counts for other items.
Inventory Depletion Count Entry:
Add or Edit: To view or edit an existing Inventory Depletion, either double-click or select edit on the row you want to edit or view. To add a new Depletion, click the blue add button. Below is an example of the Inventory Depletion Type Criteria display that comes up when you select to add a Depletion Count:
Site: Select a site using the drop-down option (required field).
Date: Select the date that you want the Depletion Entry to represent (required field).
Type: As mentioned above, Depletion Types are required and at least one must be set up. Use the drop-down to select your Depletion Type.
Comments: Comments are optional. If comments are added they are stored with the entry.
Deplete Inventory Count Entry: When you have completed the criteria, you can either click on the next button, or on the Entry tab shown in the above example. Below is an example of the Depletion Entry grid with counts already entered. The items displayed are in the Food Bank Weekly Donations Group which was assigned to the Food Bank Donations Type. You can enter depletion counts in Packs or Count Units (or both):
The plus (+) button on the top right of the grid can be used to add a depletion count for any item not displayed on the count grid. This button will only display when the Inventory Depletion Type selected in the criteria is flagged to allow additional items to be depleted. When the plus button is clicked, a search window will be provided to allow the user to search for and select an item to add to the count grid so a count can be entered on the grid.
Inventory Depletion Reporting:
Inventory Depletion Report: If you select the Inventory Depletions Report, a report parameters display similar to the one below will display:
Site: Select a site for the report using the drop-down, or if you want to consolidate multiple sites, then leave this field blank.
Begin Date: Select a start or begin date for the report (required).
End Date: Select an end date for the report (required).
Inventory Depletion Type: You can, optionally, run the report for a selected Inventory Depletion Type by selecting the type from the drop-down.
Detail or Summary: The report can show the item detail (Detail) or a grand total (Summary). An example of the Detail being selected is shown below followed by an example of the Summary selection. Please note that the detailed version reports Recipe Item depletion for Recipe Items that are not Produced without exploding out the ingredients (an example = BBQ Chicken Salad):
Summary:
Inventory Depletion Journal: The inventory Depletion Journal is for accounting. It provides balanced depletion information via credit and debits.
Begin Date: Select a start or begin date for the journal (required).
End Date: Select an end date for the journal (required).
Detail or Summary: The report can show the item detail (Detail) or a grand total (Summary). An example of each report is below with Detail coming first. Please note the detailed version explodes the Recipe Items that were depleted into their ingredients:
Summary:
Other Reports or Listings Impacted by Inventory Depletion:
Inventory Depletion counts are done for known activities such as donations or promotions so it impacts the actual inventory usage in COGS-Well versus the theoretical usage of items. In addition to the Depletion Report and Depletion Journal mentioned above, Depletions will impact Inventory Usage reporting (Actual Usage, Usage Variance, etc.) and the Item Activity Listing.
Inventory Usage Reporting: The Inventory Usage and Usage Variance reports will include depletions in the Transfer column as negative transfers (like you transferred an item out). An example of the Actual Usage Report that includes Depletions in the Transfer Count column is shown below:
The donation amounts are showing up in the Actual Usage Report in the Transfer column as negative amounts. Please note that Recipe Items that were donated (if they are not flagged as being produced), will show their donations by ingredient on this report.
To isolate actual transfer amounts specific to donations versus transfers, you can drill down on the transfer count as shown in the example below. Any counts entered as Inventory Depletions will list the Depletion Type that was used for the Depletion Count Entry as the "To Site".
Item Activity
The Item Activity Listing will include a tab for Depletions if Depletions are enabled and the selected Item has depletions for the selected date range. In the below example, we have selected an Item that we entered depletion for (Almond Milk) and selected a date range that includes the Depletion Entry:
Activity has been loaded and the Depletions tab has been selected:
View Report: Please note there is a blue "View Report" button that provides an option to view a report on the above depletion activity for an item. The button is at the bottom right of the activity listing.
Inventory Depletions Export to Accounting:
Inventory Depletions can, optionally, be exported to your General Ledger. This export process is similar to the other COGS-Well accounting export features. If you would like to verify the Inventory Depletion information that will be exported to your General Ledger before exporting it, then run the Inventory Depletions Journal, as explained above, for the same date range before you export.
To Access: To select the export feature, Navigate to Accounting>Inventory Depletions Export:
Criteria Tab: When you select the Inventory Depletions Export, a Criteria for export requesting the Begin and End Dates for the export will display (an example is below):
Depletions for Export: Click on the Depletions for Export tab to see the Depletion Totals that are ready for export. Click the Export button to initiate the Export.
