Stock Control Stocktake Variance Report

Preview Stocktake Variance

As this will be the second stocktake, the variance report is an additional step that was not done in the first stocktake. The variance report displays the movement of stock between stocktakes and most importantly any variances that have occurred.


Variance Report Definitions

  • Opening – The opening stock figure for this stocktake which is also the figure that was counted in the previous stocktake.
  • Inwards -  The amount of purchases of stock received from the Supplier Invoice Entry
  • Write Off – Items that have been written off through the Menumate POS write off function
  • Transfers – Stock moved from one location to another via the Stock Transfer Entry or Manufacture function.
  • Sales – When an item is sold on the POS terminal the stock is reduced using the Stock Reduction Quantity in the Menu Editor and is reporting in this column.
  • On Hand – The amount on hand that is recorded by the Menumate System
  • Counted – The figure that has been counted during the second stocktake.
  • Variance – This is the column that is the main focus in the variance report. The goal is to have as little variance as possible.
  • U/Cost – The cost of the stock Item
  • Cost – The cost of the variance in stock

The Opening, Inwards, Transfer and Closing are all totalled at the bottom of the report.  In addition the system calculates the USAGE figure. This is the value of stock that has been used during the stocktake period. This figure is useful to compare against the sales (excl of GST) to calculate the actual cost of sale percentage.

Cost of Sale % = Usage / Sales Excl GST

Variance Report Analysis


The variance report is used to analyse the stock movement and ensure that everything is configured correctly. Typically it takes three stocktakes to get everything as close to 100% as possible.

Typical variance report issues are;

  • The opening stock is wrong: This can be related to incorrect counting or data entry during the previous stocktake. There is nothing you can do about it at this stage.
  • The inwards figure is incorrect as there are invoices that have not been entered. To fix this exit from the stocktake and enter the supplier invoice. Once completed re-run the variance report.
  • The transfer figure is incorrect. To fix this, exit from the stocktake and enter the stock transfer. Once completed re-run the variance report.
  • There is no sales figure but sales have been made. This is likely to be due to there being no stock reduction or recipe in the menu editor. This needs to be fixed in the menu editor, but it will not adjust the stocktake.
  • All of the columns are correct but the variance is high. This is likely to be that the counted column or wrong. The best course of action is to recount the line item and then re-enter the count and re-run the variance report.

Ultimately the main goal of each stocktake is to ensure that the counted column is EXACTLY what you have in stock at that time. If all the other columns improve in accuracy with each stocktake then the variance figure will improve as well.

At this stage it would be recommended that you run the Menu Profitability report and recheck each GP% to ensure that they all look 100%.



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