How food cost is calculated
Add ingredients and products supplies and Poster will calculate food cost of each dish automatically.
How to calculate food cost for products and ingredients
Calculations for products and ingredients food cost are based on supplies and the weighted average cost method.
💡Food cost of products and ingredients is calculated by the formula:
The total cost of products in the storage / the number of products in the storage
For example, you added two supplies of apples with different value and cost: 50 pounds for $5 per pound and 25 pounds for $7 per pound. Poster will calculate the average food cost:
(50 pounds × $5 + 25 × $7) / (50 pounds + 25 pounds) = $5.67 per 1 pound of apples.
How Poster calculates a food cost of dishes and preparations
Food cost of dishes and preparations consists of total ingredients cost.
For example, Poster will calculate the food cost of “Salmon carpaccio with melon” as the sum of the dish components food costs.
$5.70 + $1.60 + $0.90 + $0.70 = $8.90
☝️Food cost of manufactured dishes and preparations consists of food costs of their ingredients in the storage at the time of manufacture.
How Poster calculates a food cost of products that are not in stock
If you didn’t add products supplies, then after the sale their balances will become negative. In the section Inventory → Stock the food cost of this products will be displayed as zero.
Food cost of products and ingredients as parts of dishes and preparations will be calculated by the last weighted average cost when these products were in stock. This cost will be taken into account when selling dishes that consist of ingredients with negative stocks left in the storage.
After you add a supply with missing ingredients, the food cost of leftovers will change to the food cost of this supply in both: the storage and in orders that were placed before.
Food cost of ingredients and products is averaged over a single inventory period. To avoid this, make inventory checks.