What is the Theoretical On-hand report?
This report differs from the default view of "Actual vs. Theoretical". It uses your Inventory, Purchases, and PMIX data to calculate how much each of your mapped products you have currently only hand. This is an estimate based on [ a starting inventory + purchases - PMIX sold amounts - waste ].
How do I find this Report?
Go to Performance > Theoretical Usage > and change your "Actual vs. Theoretical" drop-down to "Theoretical On-hand"
How does the report work?
It uses many of the same ideas and calculations as the "Actual vs. Theoretical" calculation, but instead of using a starting and ending inventory, it uses one beginning inventory and adjusts through today based on purchases, sales and any recorded waste.
The calculation is Theoretical On Hand = Starting Inventory + Purchase - Sales - Waste. Where do we get this data?
- Inventory - you must take this one for us!
- Purchases - you upload the invoices, we snag the data from them
- Sales - we must be connected to your POS and you must have (somewhat) completed your PMIX mapping
- Waste - you may optionally enter this using our Waste Log
You can click into any row to see the detailed calculation and how it's broken down between different Orders and Recipes.
The theoretical on-hand is always calculated through "yesterday" since MarginEdge will not have data for the current day. So if it's Wednesday when you're looking at the report, the calculation will be based on Sales and Purchasing data through Tuesday.
If you are looking at the report for an inventory that is either the current day or yesterday, we will not calculate a theoretical on-hand because there is no new data - the counted inventory is the theoretical inventory. For example, if you take a count on Saturday, June 19th, and then come in to look for a Theoretical On-Hand on Sunday, June 20th, the report will not have any new data to use and will just tell you the value you counted on Saturday. If you change the starting inventory to Saturday, June 12th, the report will now show you the expected on-hand starting with inventory June 12th and then adjusting based on Purchases and Sales since then.
Seeing in more detail
If you want to dig into purchases and sales you can click on the product name and see a modal with the purchases and PMIX data about sales of the product since the selected inventory date.