Inventory Depletion - FAQs

Overview:

If you want to enter, track, report, and adjust your General Ledger for items that are depleted from inventory for reasons other than transfers such as donations or promotional activities, then COGS-Well has Inventory Depletion features that can be enabled for this purpose. 

Inventory, Combined, Recipe items, and Sales Items can be depleted. After depletion counts are entered, depletion reports and a depletion journal can be run. There is also an option to export depletion adjustments to your General Ledger.

Things to Know:

• The Depletion features must be enabled on the General Tab in your Company Settings.
• There is a Depletion Entry feature.
• There is a Depletion Report.
• There is a Depletion Journal.
• There is a Depletion Export to Accounting.
• Inventory Depletion Types must be set up.
• You may want to set up Inventory Depletion Groups.

Enable Depletion in Company Settings:

Inventory Depletions must be enabled for the features to become available. To enable the Inventory Depletion feature, use the Sidebar Menu Option for Manage Company and then select the Company Settings feature. 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.

If you want to export depletions to your General Ledger, select the Accounting Tab and then check the box to enable depletions export. Please note that your accounting system will need to be configured to accept this export. Please contact support@cogs-well.com for assistance.

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.