If you are just getting started with Theoretical Usage reporting, you might find it helpful to see these articles first:
Getting Started with Theoretical Usage Reporting
Once some PMIX Mapping has been done, and you have at least two closed inventories in the system, you can start to view information on theoretical versus actual usage. To do this, in the MarginEdge main menu, go to Performance > Theoretical Usage.
Below is an example of the buttons shown at the top of the Theoretical Usage page.
The buttons include:
View by: Default is to view products for all category types, or you can select a specific category to view.
Show (All Products or Mapped Products): Default is to view all products, but you can also choose to view only those products that have been mapped using PMIX Mapping.
Show (All Used Products or Inventoried Products Only): If viewing "All Used Products", you will see all products that have been bought or sold regardless of whether inventoried. Select "Inventoried Products Only" to view only those products that appear on the starting or ending inventory or both.
Starting Date: This is the first day of the period and will be one day after the selected inventory date. In the above example, the inventory count was completed on 2/12. (You may have counted the morning of 12/13, but you would still enter the inventory date as "12/12" in MarginEdge.)
Ending Date: This is the last day of the period for reporting and will be the same date as the inventory count date. In the above example, the count was done on 12/31.
Actual vs. Theoretical: This toggles the report between seeing what you have on hand using two inventories and being able to see what you should have on hand just based on one inventory and purchases and sales. See this article for more information.
Viewing Theoretical Usage for A Product
By default, the page will show totals for each category of product. You can click the "+" on the left end of a row to expand the section and see individual products. Click the "+" to the left of the word "Categories" to expand all sections at once.
Once expanded, you'll see a display like the below:
For each row you can view:
Packaging: the inventory unit associated with the product. It can be modified on the Edit Product page for the individual product.
Sold Units: how many of the specific packaging was sold based on all POS buttons mapped to the product.
Sold Revenue: the revenue corresponding to the Sold Units.
Used Units: a calculation of starting inventory, plus purchases, minus ending inventory.
Used Value: Used Units multiplied by the last purchase price for the product.
Difference Units: Used Units minus Sold Units. A negative number tells you more was used than theoretically should have been used.
Difference Value: the Difference Units times the last purchase price for the product.
Target Food Cost %: the cost % that would have resulted from the Used Units = Sold Units. This is the theoretical and best possible cost %S.
Actual Food Cost %: the cost % actually realized by dividing the Used Units by the Sold Revenue.
Are you seeing $0 in your revenue column? This article can get you back on the right track: Missing Revenue in Theoretical Usage Report
See the Detailed Calculations for A Product
When you see a variance for a product you want to investigate further, click on a product row. This will present a new window with all the data that is combined for the theoretical usage calculations. This includes starting and ending inventory counts, purchase amounts, specific POS options selected, and purchase details.
Below is an example showing the detail behind the "Miller High Life 12oz" product from the above data grid.
Unusually large variances: Sometimes a big variance can be a result of an inventory mistake, such as a bad count, or a product mixup where a count was entered for the wrong product.
Positive Variances: It is possible to have a positive variance, meaning the usage wasn't as high as the sales, or said another way, you sold more than you depleted. Not possible! A missing invoice is one of the most common explanations for usage being lower than sales, so in that case review the purchase details shown at the bottom of the page to ensure all invoices have been processed.