We are setting up a new bakery. I would like some feedback on the setting up the inventory costs and recipe.
We bake cakes in the kitchen and sell them in slices. How would I go about in creating the recepies.
Should I input the recipe per slice or the recipe for the whole cake. If I input the recipe per cake, how would I use it in the product portion. In the product portion there is an option called multiplier, how does that work?
I am facing the same problem with buns as well. We bake them as whole but sell them individually.
I am relatively new here as well, but my understanding is.
You would setup an Inventory item called lets say “Chocolate Cake”, this item’s base unit would be Slice. The transaction unit would be cake. Each cake is a multiple of lets say 12 slices.
You would set up a Recipe, lets call it “Chocolate Cake Slice”, assign it to the product in your menu called “Chocolate Cake” with the portion assumed to be “Normal”, add Invetory and select Chocolate Cake and the quantity of slices being 1.
My understanding is that for each “Chocolate Cake” menu item sold, this will reduce your Cake inventory by 1/12 of a cake (or a slice).
*Anyone please feel free to correct me or confirm that this is correct.
The recipe really depends on what you want tracked in inventory. If you want all products used in the recipe for example, Salt, Sugar, Vanilla, Egg, Milk etc you would need to define products and inventory items with multipliers for each of those and then include them in your recipe for a product Cake. Product Cake does not have to be setup as an inventory item with multiplier… or you could setup 2 warehouses one would track the raw ingredients for recipe cake. the other warehouse would purchase finished Cake from Warehouse 1 and it would track Cake inventory.
This would be a production warehouse and a retail warehouse or you can name it whatever you want.
I would prefer step 2, as this will allow me to track my raw ingredients and my semi finished items. Also at the end of the week this will allow me exactly track my costs for my semi finished items and my raw ingredients.
This is what I did. I create two warehouses (Storage & Sales). I created a transaction type with my source warehouse as Storage and destination warehouse as Sales) screenshot
Then I created Cake as an inventory item in the sales warehouse. I can now create a transaction document to transfer my inventory items from Storage to sales warehouse.
But this will not allow me to automatically track the ingredients for my finished products (ex whole cake), as I have not defined a product yet. Alternatively I can create a product for whole cake and define my recepies. Whenever we produce the cakes, we will have to buy it ourselves (this does not make sense to me) so my ingredients would be tracked. Additionally I will have to create a transfer document to add my cakes to my inventory.
I think there should be a simpler way of doing this which I am not seeing yet.
Tracking a baked product ingredient is as simple (or difficult) as tracking what goes on a sandwich. If you want to track the ingredients, then they must become Inventory Items, and you must purchase them in some quantity, and to discern Cost, the items must have a Price. Even a transfer of ingredients from one Warehouse to another could be considered a Purchase. So you need an Inventory Item for things like:
Flour
Egg
Milk
Baking Powder
Yeast
Chocolate
etc.
Set the Base Unit to your smallest amount of measure. For flour, this could be Grams.
Set the other units and multipliers to how you purchase the item. For flour, this might be KG with multiplier set to 1000.
Create your Cake Product
Give it 2 Portions: Whole and Slice
Create a Recipe for Cake Whole, adding the ingredient Items and their quantities as necessary.
Create a Recipe for Cake Slice, adding the ingredient Items and their quantities as necessary.
Purchase your ingredients using an Inventory Transaction Document.
Sell some Cake in whole and/or slice, then close the Workperiod.
