5.1.2. The Stock Screen and Critical Stock

The stock screen shows how much of each raw material you have and what that stock is worth. You also track items that reach a critical level through the colours on this screen. In this lesson you will learn to read the screen, set minimum and ideal quantities, and use par stock logic.

Reading the stock screen

Open Stoklar & Reçeteler > Stoklar > Stoklar. The table has these columns:

• Grup and Ham madde: the group and name of the raw material.
• Harici kod: the code used to match with another system.
• Miktar (quantity): stock on hand. Critical levels are shown by the colour of the quantity text.
• Birim (unit): the unit you defined, such as Kilogram or Litre. For packed units, the pack content is shown too, such as Koli (12x750 Ml). On these rows, the quantity is written as full cases plus the remaining ml, such as 1 + 8435 ml.
• Bir birimin alış fiyatı: the current purchase price per unit.
• Toplam (total): the value of the stock on that row.
• İşlemler: row actions.

The Gelen fatura (incoming invoice) button at the top is for entering purchases. It is covered in 5.1.3. Entering Inventory from an Invoice.

How stock goes down and up

Stock quantities change in several ways:

• Sales: when an order is completed, the quantities in each product's recipe are deducted. The amount deducted is the recipe's Miktar (quantity) plus Fire (waste), times the quantity sold. Products without a recipe are not deducted.
• Reopening or cancelling an order: if a completed order is reopened or cancelled, the deducted amounts are added back. See 6.10. Reopening a Closed Order.
• Purchases: an incoming invoice increases stock.
• Counts: an applied stock count sets stock to the counted quantity. See 5.1.5. Stock Count.
• Waste: a waste record reduces stock. See 5.1.6. Raw Material Waste.
• Production: producing reduces the inputs and increases the produced raw material. See 5.5. Production Module.

Stock can go below zero during sales. This usually means a purchase has not been entered yet or a recipe differs from practice. When you see negative stock, first check whether recent invoices have been entered.

How stock value is calculated

The box at the top of the page shows your total stock value. For example, it reads "Stoktaki ürünlerin toplam tutarı 46.509,00₺." (total value of items in stock). Each row's value is in the Toplam column.

Stock value = Quantity (in the smallest unit) x Purchase cost of the smallest unit

Negative stock counts as zero in this total.

Example (sample data): you have 3,500 g of minced meat. The purchase price is 180.00₺/kg, which is 0.18₺/g. The row value is 3,500 x 0.18 = 630.00₺.

The purchase price is updated with a weighted average at every purchase. The method is explained with an example in 5.1.3.

Minimum and ideal quantity

You can set two limits for each raw material. You enter them with İşlemler > Excel dosyasından stokları güncelle (actions, update stocks from an Excel file). In the file, the minimum is in the minAmountLimit column and the ideal quantity in the idealAmount column:

• Kabul edilebilir minimum miktar (acceptable minimum): when stock falls below this, it is time to order.
• Bulunması istenen ideal miktar (desired ideal quantity): the level you want to reach after ordering.

Write the values in the smallest unit (g, ml or piece). For an item defined in kilograms, write 18000 instead of 18 kg. Excel operations are covered in 5.1.4. Excel Operations.

To see the limits of all raw materials in one table, open the Göster (show) menu on the stock page and choose Miktar limitleri (quantity limits). The Göster menu offers: Ham maddeler, Stoklar, Miktar limitleri, Tanımlanmış vergiler (defined taxes) and Harici kod.

The Miktar limitleri table has these columns: Grup, Ham madde, Kabul edilebilir minimum miktar and Bulunması istenen ideal miktar.

Red and green

The Miktar column on the stock list uses two colours. The colour applies to the quantity text only, not to the whole row:

• Red: stock is below the acceptable minimum. It is time to order.
• Green: stock is at or above the ideal quantity.

Quantities between the two levels have no colour.

You track critical stock through these colours. We suggest reviewing the list by the Miktar column before you place orders.

Setting par stock and minimum stock

It is better to set limits from your actual usage than from a guess. The industry uses par levels for this.

A par level is the quantity you need on hand from one delivery to the next. The order quantity is the par level minus the quantity on hand (BC Cook Articulation Committee, 2015). Dopson and Hayes also recommend setting a minimum and a maximum par value for each ingredient.

The following formulas are common industry practice. Adapt them to your business:

• Par = Average daily usage x Delivery interval (days) + Safety stock
• Minimum = Average daily usage x Lead time (days) + Safety stock
• Order quantity = Par - Quantity on hand

Example (sample data): you use 12 kg of tomatoes a day on average. The supplier comes every three days and delivers the next day. You keep 6 kg as safety stock.

• Par = 12 x 3 + 6 = 42 kg
• Minimum = 12 x 1 + 6 = 18 kg
• With 15 kg on hand, order quantity = 42 - 15 = 27 kg

In the file, write the par value as 42000 in idealAmount and the minimum as 18000 in minAmountLimit. When tomatoes fall below 18 kg, the quantity turns red. You can work out the order quantity with the formula above.

Usage changes with seasons and campaigns. Review the limits every few months.

Updating the stock of a single item

We suggest tying stock changes to a document wherever possible. It makes tracking easier later:

• If you bought a single item, enter a one-line Gelen fatura.
• If the quantity on hand differs from the system, count that group with Stok sayımları (stock counts) and apply the count.
• For spoiled or spilled items, enter a Zayi ham maddeler (raw material waste) record.

Each row in the Stoklar (stocks) list has three buttons: Düzenle (edit), Arttır (increase) and Faturalarda (in invoices).

• Arttır: opens the Stok arttır (increase stock) window. The top of the window shows the unit and the quantity on hand. Enter the quantity to add in Miktar (quantity) and the purchase price in Bir birimin alış fiyatı (purchase price per unit), then press Arttır.
• Düzenle: opens the Stok düzenle (edit stock) window. It has a single field: Hazır bulunan stok miktarı (quantity on hand). Enter the quantity you have and press Kaydet (save).
• Faturalarda: lists the invoices that contain the raw material in a side panel. The panel has the İsim, Miktar and Price in columns. Each row has a Fatura (invoice) button. The invoice number is not shown in the panel.

In both windows, enter the quantity in the smallest unit. The window reminds you with a banner. For a raw material in Kilogram, it reads "Miktarlar gram olarak tanımlanmalıdır!" (quantities must be entered in grams). The quantity on hand is also shown in grams. To add 5 kg, enter 5000 in Miktar.

These two windows are for quick corrections. For traceability, prefer the document based routes above where possible.

To try the calculations, use the inventory waste cost calculator.

Sources

• The BC Cook Articulation Committee (2015). Basic Kitchen and Food Service Management. BCcampus. Chapter: Purchasing. opentextbc.ca
• Dopson, L. R. and Hayes, D. K. (2015). Food and Beverage Cost Control. 6th edition. Wiley. Chapter 3.