Compeat - How to use Inventory Actual Usage Report
Use this Compeat report as an additional tool to review inventory item count accuracy after entering inventory valuation counts.
1. Once inventory valuation counts have been entered, after reviewing the Inventory Count Pre-Post report, in Compeat, click on Reports > Inventory Activity > Inventory Actual Usage.
The Inventory Actual Usage Report Options will open in a new window and your store number will auto populate as the default entity #.
2. Using the dropdown, select the date range that corresponds with the current period, beginning with the ‘From’ date. You may also manually type in the date, if you prefer.
3. If there are specific inventory items or categories you would like to focus on, input those Inventory Item #s OR Inventory Levels.
- You may enter Inventory Item # Range (maybe not the most helpful since inventory item numbers are sequentially automatically generated or you may list specific items, separated by commas (for example, 173,658,3711). Note, you are not able to choose an Inventory Item # Range AND list specific item numbers concurrently; you are also not able to choose an Inventory Item # Range or list item numbers AND choose Inventory Levels concurrently. These areas may be left blank. If they are left blank, the report that Compeat generates will show usage for all inventory items that are active for the entity.
4. If you are reviewing data for the current period, prior to the posting of inventory valuation counts, it is important to make sure that the ‘Include Unposted Vouchers’ and ‘Use Unposted Inv Counts’ boxes are checked under the Misc option.
- If you are reviewing data for a closed period, after inventory valuation counts have been posted, be sure that ‘Use Unposted Inv Counts’ is unchecked. For optimum viewing, ‘Include Detail’ and ‘Row Shading’ are both recommended as selected options as well.
5. Under Post Type, ‘Valuation Counts’ will be selected by default and is the recommended option.
6. Once you have selected options and are ready to review the report, click Preview at the top. The report will open in a new window.
The Inventory Actual Usage report shows, by item:
- the beginning inventory count;
- purchases of each item during the selected date range (invoiced purchases and inter-store transfers only; not purchases made as Aloha paid outs);
- ending inventory count (the valuation count that was entered into Compeat); and
- calculated actual usage
Beginning Inventory + Purchases – Ending Inventory = Actual Usage
Some Items to Note:
- If the purchases for the period are 0 or seem low for an item that is regularly purchased and sold, based on operational observations, this would suggest that an invoice (or multiple invoices) may be missing or that purchased items were not properly coded.
- If there are purchases for the period but the ending inventory count is 0, especially if the beginning inventory is not 0, ask yourself if 100% sell through of that product seems reasonable or realistic. Did the period truly end with a zero quantity of that item in house? Go back and verify that data entered into Compeat for that item was correct and try to verify the actual physical inventory ending quantity, if possible. If the ending count is zero but there is product in house, perhaps the item was missed during the physical inventory counting process or the ending count just wasn’t properly recorded.
- Does the report show calculated usage as a negative number (signifying “inventory growth”)? If so, this warrants additional scrutiny and steps to verify inventory accuracy as it would indicate one or more of the following scenarios have occurred: the beginning inventory (last period end inventory) count was incorrect; an invoice or invoices are missing; the current period ending inventory count is incorrect.
- Does the calculated Actual Usage appear reasonable and accurate? Does the Actual Usage align with item sales per Aloha for the period? If not, there may be missing invoices or an issue with either the beginning or ending inventory count.
- By clicking on an inventory item number or the name of the item on the Inventory Actual Usage Report, you can review the Restaurant Inventory Item information for that item, including the most current weighted average cost per inventory unit, the item’s inventory location(s), vendor information, the last purchase date, and the last purchase unit cost.
Note that this may not have been the cost per inventory unit at the time of the ending count, depending on the date range used.
To understand how this relates to the General Ledger and COGS for the period, see the following example for poultry.
