Viewing ‘Cost of goods sold’ report
A manager uses the Cost of goods sold (COGS) report to track the direct cost of ingredients and supplies used to prepare menu items. This report helps restaurants understand how much is spent to produce food and beverages. It includes the opening inventory, records the purchases made during the period, and calculates actual usage based on the closing inventory. By analyzing COGS, restaurant teams manage inventory more effectively, reduce waste, and increase profit margins.
Managers can run the ‘Cost of goods sold’ report to view the cost and usage of raw items between two inventory counts.
Note: Ensure at least one inventory count is recorded to generate the report. However, availability of at least two inventory counts is more beneficial.
To run a COGS report:
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Select Inventory > Reports > Invoice history report. The Cost of goods sold report appears.
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Select a site.
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Select the date range and click Done.
Note: Dates with at least one inventory count is only available for selection.
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Select the General Ledger (GL) account.
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Select the reporting unit.
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Select the item price range.
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Select the days on hand range. The following details appear on the screen:
- Net sales — The total revenue generated from food and beverage sales after deducting any discounts, returns, or allowances.
- Total cost of goods — Sum of all direct costs incurred to produce the items sold during a specific period.
The following information appears in the report:
| Column | Description |
|---|---|
| Raw item name | The name of the ingredient or supply item. For example, Chicken breast. |
| GL account | The general ledger account number. |
| Reporting unit | The unit or location generating the report. |
| Start count | The quantity of the item available at the beginning of the reporting period. |
| Total purchases qty | The amount of the item purchased during the reporting period. |
| End count | The quantity of the item remaining at the end of the reporting period. |
| Item price | The cost per unit of the item. |
| Ending inventory | The total value of the remaining stock. |
| Days on hand | Estimated number of days the current inventory will last based on usage. |
| Usage in units | |
| Actual | The actual quantity of an item used during the reporting period. |
| Usage in dollars | |
| Actual | The total cost (in dollars) of the item used. |
| Usage in percent | |
| Actual | The percentage of total cost of goods sold that the item represents. |
Return to "About inventory management," or continue to "Managing recipes."