Some Key Formulas
Cost of Goods Sold = Starting Inventory + Purchases - Ending Inventory
Food Cost % of Sales = (COGS by Category Type) / (Sales by Category Type)
Sales = All Sales Lines set to a Category Type AND Included in Reporting
What are the Different Reports in MarginEdge?
Controllable P&L - A high level view, showing you your COGS (Cost of Goods Sold) by Category Type. It is revenue and expenses gathered from sales entries, invoices, and inventory adjustments in a customizable date range.
[Only exportable as a PDF]
Budgets - Shows you all purchases and inventory adjustments set by Category, compared with sales set with the same Category Type (i.e. a percentage budget) in a customizable date range.
This is your COGS on an invoice and inventory level.
Food Usage Report - Uses purchasing data, inventory summaries and sales entries to calculate Cost of Goods Sold and Cost % based on Category Type sales. Can adjust the view to see a timeframe between any two inventories (and is most meaningful if the chosen inventory dates actually have comparable inventories).
In other words, it gets you down to the product level COGS and cost percentages.
[Exportable as either a PDF or CSV, which means you can play with the data!]
Frequently Asked Questions
Why don't my P&L and Food Usage Report match?
The Food Usage Report (FUR) is agnostic as to which inventory sheet a product was on, or if the two dates selected contain different sheets or a totally different set of products. (Remember, the system rolls up all inventories taken on a particular day.) This has two implications. First, the FUR is only meaningful if the two dates being compared have comparable inventories. Second, the FUR might vary slightly from the P&L as the P&L tries to compensate for these sorts of potential incongruities in inventory coverage.
Why don’t my Budgets and P&L match?
The Controllable P&L references different data than your Budgets.
- The Controllable P&L uses product category data as it is currently set in the system (which may not match every single closed invoice if anything changed recently).
- Budgets reference product category data as it is on the closed invoices.
This means if a product's category changed after an invoice was closed it will be reflected on the P&L in the new category but not in your budgets.
Why don’t my Budgets match my purchases?
Budgets are a reflection of your COGS, and your purchases are not the only factor in your cost of goods. You also need to consider your inventory.
When inventories are taken, the cost of goods value shifts because inventory on hand is not a cost of goods sold (an expense) but is a good available for sale (an asset). This means inventory adjustments where the value of the inventory goes up will commensurately decrease the Cost of Goods Sold. Likewise, an inventory adjustment where the inventory value goes down will will commensurately increase the Cost of Goods Sold.
Do I need to do PMIX Mapping to calculate my COGS?
PMIX mapping, or the mapping of your Products and/or Recipes to the buttons from your Point of Sale System is not necessary (or considered) when calculating your Cost of Goods Sold.