This help article was translated using AI and may contain inaccuracies. If you are unsure about any information, please refer to the original version in French for accuracy.
Inventory valuation in the restaurant industry refers to determining the total monetary value of goods, such as food and beverages, held by an establishment at a given time. This allows you to quantify the financial value of your inventory, thus facilitating financial management and operational decision-making.
How is inventory valued on Yokitup?
First, it is essential to note that during inventories, you count your products, and the valuation is therefore specifically applied to these products. However, the cost of valuing each product is based on the purchase information of your items, which, in turn, helps to supply the stock of each of your products.
If you still have doubts 👉 What is the difference between your products and your items?
What method does Yokitup apply to value a product?
Today, we have opted for the WAC/CMUP/CMP method, which is the weighted average cost. The weighted average purchase cost is an inventory valuation method that takes into account both the purchase price of the products and the quantities available in stock. Here's how the calculation works in the context of our example:
Initial stock: At the beginning of the period, we have an initial stock of 6 kilograms of carrots, valued at €5.67.
Deliveries: During the period, we receive two deliveries of carrots:
A delivery of 20 kilograms of carrots from Transgourmet, at a purchase price of €3.50 per kilogram.
A delivery of 56 kilograms of carrots from Métro, at a purchase price of €2.70 per kilogram.
Calculation of the total cost of each delivery: For each delivery, we calculate the total cost of the products received by multiplying the quantity received by the purchase price:
Cost of the Transgourmet delivery: 20 kilograms * €3.50 = €70
Cost of the Métro delivery: 56 kilograms * €2.70 = €151.20
Calculation of the total stock cost: We add the initial stock cost with the total cost of each delivery:
Total initial stock cost: 6 kilograms * €5.67 = €34.02
Total delivery costs: €70 (Transgourmet) + €151.20 (Métro) = €221.20
Total stock cost = Total initial stock cost + Total delivery costs = €34.02 + €221.20 = €255.22
Calculation of the weighted average purchase cost: Finally, we divide the total stock cost by the total quantity in stock to obtain the weighted average purchase cost:
Total quantity in stock = Initial stock (6 kilograms) + Transgourmet delivered quantity (20 kilograms) + Metro delivered quantity (56 kilograms) = 6 + 20 + 56 = 82 kilograms
Weighted average purchase cost = Total stock cost / Total quantity in stock = €255.22 / 82 kilograms ≈ €3.11 per kilogram
Thus, in our example, the weighted average purchase cost of carrots is approximately €3.11 per kilogram.
💡 If you wish to view the weighted average cost per unit of each of your products, it is entirely possible to do so. To do this, go to the "Inventories" module, select the desired inventory, then click on "Actions", followed by "Export". Make sure to check the box "Show weighted average cost per unit".
Related articles: