The Item Category Theoretical Variance Report shows trends of total variance dollars per Category over a date range, broken down by count-to-count calculations. This report will help point out high-level trends with categories due to the loss (or gain) of items in that category.
The goal for Managers is to see these numbers as close to $0 as possible because it shows that invoices are logged, employees aren't stealing, recipes are followed correctly, and more. Any drastic positive or negative changes should alert the Manager to a problem within that category by looking at an item or items with drastic dollar amount changes. A User would then be able to drill into each item category and dollar amount to determine where the problem lies.
Navigation
To navigate to the Item Category Theoretical Variance Report, click 'My Reports' in the Operations Module and select 'Purch. & Inv.' in the top header. Once opened, a listing of reports will be shown.
Find 'Item Category Theoretical Variance' and select 'Customize' next to the report. This will open up a listing of all Report Parameters that can be used to define your report.
Report Parameters
1) Locations - A listing of all Locations
2) Start Date - The beginning date for the report
3) Key Items Only - This option has the report ran for only the key items flagged in inventory or for all items
4) End Date - The end date for the report
5) Show Unapproved - This option either shows or hides Unapproved counts
6) Count Time - This option specifies the time of the day the stock count was performed
7) Theo Cost Method - 'Current Cost' will use the current cost on all items to calculate all theoretical costs; 'Average Cost' will use an average cost per item over the date range of the report to calculate theoretical costs
8) Item Category - These Item Categories let the User select and filter specific items
9) Total By - These options allow the total cost to be totaled by the specified Item Categories selected
10) Show Non Counted - This option refers to showing items that either were or were not counted during the time of the stock count
11) Rounding - Clicking 'No Rounding' will include decimal values while clicking 'Whole Numbers' will round decimal values to the nearest whole number
12) Total Var Filter (ABS) - This can allow a User to narrow down the amount of variance by a chosen amount
13) Cat1Exclusions - This option excludes items assigned to item categories
14) Run Button - Runs the report
Report Columns
1) Location with Item Categories - This column lists all Locations selected alphabetically with Item Categories listed underneath each Location
2) Stock Count Dates Columns - Each of the dated columns includes the stock count calculations of each Item Category to show the variance in usage. The closer to $0 for each Item Category shows that the actual usage is closer to the theoretical usage
3) Total - The total amount of each Item Category from all the stock counts
4) Variance % Sales - The percent of Net Sales for the Total Variance (Total Variance/Net Sales)
5) Grand Total - The overall total of each Location's variance usage