Lesson Three

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Lesson Three

• Inventory Management

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Inventory Management

• This class exposes the students to basic
  inventory management. It shows them how
  CostGuard helps to manage the process.

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Objectives

• Use CostGuard to track where inventory items are
  located
• Use CostGuard during different parts of the
  Inventory Cycle.

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What is Inventory Management

• Making sure that the correct inventory items are
  safely in their proper places for use by the
  appropriate personnel.

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Why do we need Inventory Management?

• so that the necessary inventory items are on the
  premises
• so that the necessary inventory items are
  available when the cooks need them
• to decrease expenses by better planning the work
  involved.

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The Inventory Cycle

• Ingredients are purchased (order in CostGuard)
• They arrive and are put away (receipts in
  CostGuard)
• They are stored for a period of time
• Some ingredients are sent to other parts of our
  establishment

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The Inventory Cycle

• They are used and sold (Recipes and Sales in
  CostGuard)
• They are counted (Counts in CostGuard)
• Reports are generated as to the profitability of
  the ingredients and accuracy of the Reports.

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Step II Items arrive and are put away

• To enter the information into CostGuard,
• 1.      Click Inventory, click Receipts.
• 2.      Use the cursor to move the yellow
  arrow to the box to the left of the Vendor. 
  Click Select

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Step II Items arrive and are put away

• 3.      A blank Receipt Screen will appear. 
    Enter in the Invoice Number, the Invoice Date,
  Invoice Subtotal, Receive Date, Freight Charge,
  and Sales Tax.  If you have any comments on the
  invoice, enter it in the comment line.

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Step II Items arrive and are put away

• 4.      You have three options to fill the
  Receipt Field.  You can use the Fill Icon, click
  the PO , or use the Plus button to add the
  Inventory Items.

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Step II Items arrive and are put away

• 5.      To use the Fill icon, click it.  The Bid
  activation popup will appear. If you have entered
  Bids into the computer, click yes to use the Bid
  pricing.  If you click no, then you will need to
  type in a quantity for the new prices to hold. 

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Step II Items arrive and are put away

• 6.      To use the PO, click the three dots at
  the end of the field.  A list of Orders from this
  Vendor will appear.  Use your mouse to move the
  yellow arrow left of the Order associated with
  this Receipt.  Click Select.

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Step II Items arrive and are put away

• 7.      You can enter Inventory items with the
  Plus button.  A list of Inventory Items from this
  Vendor will appear.   Make sure the yellow
  arrow is to the left of the Inventory Item. 
  Click Select.  The Item code for this Vendor will
  appear. 

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Step II Items arrive and are put away

• 8.      With the Invoice handy, start entering in
  the Received Purch\Pack and New Cost for each
  Inventory Item listed.  Dont forget the decimal
  points, and check to see if an Items price has
  changed from Bid to Receipt.

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Step II Items arrive and are put away

• 9.      To enter in a quantity, use your mouse to
  move to the Quantity column.  Type in the Default
  unit first followed by the Other Unit.

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Step II Items arrive and are put away

• 10.  To make it faster when entering in the
  Quantities, use the AutoAdvance Button located at
  the bottom of the screen.  Click on it, to change
  the direction, and you can use your enter key to
  move quickly between the fields.

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Step II Items arrive and are put away

• 11.  When you are finished entering in the
  Inventory Items, check to make sure that the
  totals match.  The amount in the Received field
  should equal Invoice Subtotal plus Tax and
  Freight.  If the totals do not match, then there
  is an error somewhere that you need to corrected.
  

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Step II Items arrive and are put away

• 12.  When you are finished with a Receipt, click
  the save icon to save the Receipt.  CostGuard
  will ask you if you wish to continue adding
  Receipts in, and if you click yes, the Vendor
  list will appear, and you will start over again. 
  Click no, and you will exit from this part of the
  program.

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Step III - They are stored for a period of time

• During this time, the inventory items are on a
  shelf within the establishment.

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Step III - They are stored for a period of time

• 1. Click Inventory, Click Reports, Click the
  re-order Tab. Click the button in front of
  Purchasing Directory.

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Step III - They are stored for a period of time

• 2. Find your inventory item. Look at the column
  called Last Priced. This is the date that the
  last receipt for this item was entered. If you
  enter your invoices on a regular basis, then the
  receipt date is around that time.

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Step IV - Some ingredients are sent to other
parts of our establishment.

• Why do we track Inventory Items going to other
  parts of our establishment?

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Step IV -

• To make sure that the proper place is charged for
  the inventory items that they used. For example
  we run a hotel kitchen. We buy juices, fruits
  and condiments for the bar. The bar should be
  charged for the items we order for them.

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Step IV

• CostGuard has two different Methods to track
  inventory to different departments or entities.
• Transfers
• Requisitions

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How to create a Requisition

• 1.       Click Inventory, click Requisitions.
• 2.      Click on the box next to Requisition Name.

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Questions for the Class

• Why would you want to differentiate between a
  requisition and a transfer? Why is this
  important for your financial statements?

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How to create a Requisition

• 3.      Scroll down to highlight the Requisition
  desired.  Make sure that the  yellow arrow is to
  the left of the Requisition.  Click Select.

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How to create a Requisition

• 4.      Tab down to the Item Name Field.  Click
  the  button to bring up a list of Inventory
  Items.  Scroll down or use the Search field to
  find the Inventory Item that you want to send to
  the Requisition.  Make sure that the  is to the
  left of the Inventory Item.  Click select.

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How to create a Requisition

• 5.      The Requisition screen will reappear
  notice that the Purch\Pack Unit and the Current
  On-Hand will appear.  Tab over to Quantity
  Adjusted field column. 

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How to create a Requisition

• 6.      To enter in a quantity, use your mouse to
  move to the Quantity column.

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How to create a Requisition

• 7. To send the Requisition to the Shopping Cart,
  click the  button.  A confirmation popup will
  appear.  Click Yes to add the items to the
  Shopping Cart. Adding Inventory items to the
  Shopping Cart is how they are transferred to the
  Order Screen.

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How to create a Requisition

• CostGuard will add the items to the Shopping
  Cart.  A blue progress bar will appear in the
  lower right hand side.  If you have a large
  Requisition, it may take a moment or two.  When
  CostGuard finishes sending the information to the
  cart, will see a confirmation popup.  

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How to create a Requisition

• 9.  When finished, click the  icon to save the
  Requisitions.

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How to create a Requisition

• 10.  To view Saved Requisitions, go to the
  Requisition Journal.  Click Inventory, click
  Reports, click Journals and click the button in
  front of Requisition Journal.
• The Requisition Journal will show all Inventory
  items in saved Requisitions. 

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What did CostGuard Do?

• It took the list of items and requisitioned them
  to a unit within the establishment. These items
  can be pulled from main storage and then sent to
  the party or place.

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What did CostGuard Do?

• CostGuard has a total of the inventory items.
  This dollar figure can be transferred to that
  department or used as a costing basis for a party
  or other event.

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Prep Areas

• Prep Areas are different from Requisitions.

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Step V They are used and sold.

• Other ways of depleting Inventory (having
  CostGuard recognize that it is used up) is to
  enter in the recipes and Sales into the program.
  Some recipes such as bulk or batch recipes such
  as soup, lasagna, and desserts are made up ahead
  of time.

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Step V They are used and sold.

• CostGuard uses the Recipe Build and the Sales
  part of the program to handle these depletions.

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Conclusion

• What is Inventory Management making sure that
  the proper product is available when needed. It
  is making sure that product moves through the
  restaurant in a timely fashion, and transactions
  associated with each stage is recorded.