inventory records
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Inventory Records. Valerie Crouch, SNS Child Nutrition Program Consultant School and Community Nutrition Kentucky Dept. Of Education. Inventory Records are used to: Provide information regarding food and supplies in stock. Determine purchasing needs. - PowerPoint PPT PresentationTRANSCRIPT
Inventory Records
Valerie Crouch, SNSChild Nutrition Program
ConsultantSchool and Community
Nutrition Kentucky Dept. Of Education
Inventory Records are used to:•Provide information regarding food and supplies in stock.•Determine purchasing needs.•Provide data for food cost control.•Control theft and pilferage.
Inventory Control
The first step to good inventory control is a system of counting inventory.The two systems of counting inventory are perpetual and physical.With a perpetual inventory a physical inventory is still necessary, but a physical inventory can be kept without a perpetual.
Perpetual Inventory
• Perpetual inventory requires updating the balance on hand by adding each item received on the invoice and subtracting the count of items issued from storeroom.
• At any given time the balance on hand should be the amount in inventory.
• Perpetual inventory is an excellent way to use inventory levels when planning purchases. Item numbers can be added with product name for referencing when ordering.
• The accuracy of the perpetual inventory should be checked at least monthly by taking a physical inventory of all items.
Perpetual InventoryYour School
Perpetual Inventory
Item DescriptionBalance brought Forward
Amount Received and Amount Used Ending Inventory
Breakfast page 1
(Be sure to include losses or transfers both In and Out) (NOTE: Bold In/Out indicates previous day's usage.) Daily
Activity Total
Actual Physical
InventoryCase Price Total ValueDates: ~ September, 2010 ~
(State size of smallest unit) 1 2 3 6 7 8 9 10 13 14 15 16 17 20 21 22 23 24 27 28 29 30 31
0 0
Bacon Sandwich 125141 0 25.32 0
Biscuit Dough 618152 0 30.1 0
Cereal Apple/Cin Cheerios 509426 0 20.87 0
Cereal Cheerios 534765 0 20.87 0
Cereal Cheerios Hny/nut 509396 0 20.87 0
Cereal Fflakes RS 388190 0 24.82 0
Cereal Kits FF561830/AJ561840/lFL 561821
0 44.69 0
French Toast Cinn.Glazed 577560 0 63.82 0
French Toast Sticks 725380 0 37.27 0
French Toast Sticks WG 725380 0 63.82 0
Frozen Egg Patty 462519 0 14.69 0
Good Gravy Pizza 154733 0 43.15 0
Mini Maple Wraps 214124 0 38.54 0
Mini Pancakes Map.778201/Str778210
0 30.33 0
Muffins blueberry 577006 0 24.63 0
Muffins choc. 508454 0 32.13 0
Pancake & Saus. on Stick 189782 0 19.67 0
Sausage Patty 112630 0 18.17 0
Syrup 160090 0 19.88 0
WG poptart BS 695880/Str. 695890 0 36.73 0
Yogurt 551760 0 13.91 0
Your School ~ September, 2010 ~ Total Inventory: 0 0 0
** The 'Daily Activity Total' column and the 'Actual Physical Inventory' column should match. You may make small notations on the form if there is loss or discrepancies. Revised 8/5/2008
Physical Inventory
• Physical Inventory is the process of physically counting the entire inventory. You can use the optional D-6 form or develop a physical inventory form based on the market order form and the physical layout of the storeroom.
• Determine a standard procedure to count broken cases. Recommendation: Count by can, and/or by piece (for whole turkeys or hams).
• A physical inventory should be taken prior to placing orders.
Commodity vs. Purchased Food Inventory
A separate inventory for commodities is not required.
Treat commodities like other foods you purchase, store, and use.
Daily Goods and Services Received and other Direct Cost (D-5)
Date
DESCRIPTION(Vendor, Invoice
Number, Etc.)
PURCHASED FOOD &
MILK
EXPENDABLE EQUIPMENT(Value Under
$1000.00)And
Expendable Supplies
PURCHASED
SERVICES(Garbage,
Linen Service, Pest Control,
Etc.)
DISTRIBUTION
OF PURCHASED
FOOD COMMODITIES AND SUPPLIES
EMPLOYEE
FRINGE BENEFITS (Matching
Retirement & FICA,
Insurance Etc.)
UTILITIES(If Paid
FromFood Services)
MISCELLANEOUSCOST
VALUEof USDA
COMMODITIES
RECEIVED
DONATEDGOODS
AND SERVICES
A B C D E F G H I J K
Non-Expendable
Equipment
TOTALS$ $ $ $ $ $ $ $ $
NHS-D5 DAILY GOODS
AND SERVICES
RECEIVED AND
OTHER DIRECT COST
TOTAL OTHER DIRECT COST ADD COLUMNS D THROUGH I $
D-5
• Full purchase price (not NOI discounted price) is recorded on the inventory and on the D-5 in Column C.
• For brown box delivery, record FMV (purchase price from your current bid) on the inventory report fair market value in Column C.
• Column J is no longer used on the D-5.
D-6
• At the bottom of the D-6 form is the equation used to calculate the value of food and milk used monthly.
• Each site will need to complete the equation monthly.
NHS D-6 – Optional Form Note: Drop Cents from this form
DIVISION OF NUTRITION AND HEALTH SERVICES KY DEPARTMENT OF EDUCATION
PURCHASED FOOD & MILK INVENTORY
MONTH YEAR Beginning Inventory $ Page of
(Previous month’s ending inventory) School, School Food Authority or Sponsoring Agency Storeroom Location
Ending Inventory Of Current Month
ITEM DESCRIPTION
TOTAL UNITS
COST PER
UNIT
TOTAL COST
Ending Inventory Of Current Month
ITEM DESCRIPTION
TOTAL UNITS
COST PER
UNIT
TOTAL COST
(A) (B) (C) (D) (E) (F) (G) (H) X = X =
X = X =
X = X =
X = X =
X = X =
X = X =
X = X =
X = X =
X = X =
X = X =
X = X =
X = X =
X = X =
X = X =
X = X =
TOTALS TOTALS (D)
H. Total from Column D + H $ (J) Value of Ending Inventory $
CALCULATION TO ARRIVE AT VALUE OF FOOD AND MILK USED BEGINNING INVENTORY
+ PURCHASED FOOD & MILK RECEIVED
= VALUE OF FOOD AVAILABLE
- ENDING INVENTORY
+ or - ADJUSTMENTS TO INVENTORY
= VALUE OF FOOD USED
(K) + (L) = (M) - (N) + or - (O) = (P) $
+
$
=
$
-
$
+ or -
$
=
$
SCN-D6
NOTE: Drop cents f rom this f orm
SCHOOL
MONTH YEAR
K. Beginning I nventory $ -
plus
L. Purchased Food and Milk Received $ -
equals
M. Value of Food Available $ -
minus
N. Ending I nventory $ -
plus or minus
O. Adjustments to I nventory $ -
equals
P. Value of Food Used $ -
PURCHASED FOOD AND MILK INVENTORY
NOVEMBER 2011
~~ ~~ ~~ ~~ ~~ ~~ ~~
CALCULATI ONS TO ARRI VE AT VALUE OF FOOD AND MI LK USED
ABC
Calculation to Arrive at Value of Food and Milk Used
K. Beginning Inventory - ending inventory from the month prior.(plus)L. Purchased food and milk received – Total of Column C from the D-5.(equals)M. Value of Food Available for that site for during the month. (minus)N. Ending inventory – the value on the last day of the month. (add or minus)O.Adjustments to Inventory – Any increase/decrease in the inventory due to, for example, loss of food by theft/spoilage or transferring food from one school to another. (equals)P. Value of Food Used
SCHOOL
MONTH YEAR
K. Beginning I nventory $10,000.00
plus
L. Purchased Food and Milk Received $ 4,500.00
equals
M. Value of Food Available $14,500.00
minus
N. Ending I nventory $ 7,500.00
plus or minus
O. Adjustments to I nventory $ 100.00
equals
P. Value of Food Used $ 6,900.00
NOVEMBER 2011
~~ ~~ ~~ ~~ ~~ ~~ ~~
CALCULATI ONS TO ARRI VE AT VALUE OF FOOD AND MI LK USED
ABC SCHOOL
PURCHASED FOOD AND MILK INVENTORY
Days and Turnover of InventoryOne of the best ways of determining if the inventory is too high is to determine how many days of inventory are in stock or how many turnovers in inventory are occurring each month. Ideally there would not be any more in inventory at any one time than is needed before the next delivery. If there are weekly deliveries, no more than seven days of inventory are needed. To determine how many days of inventory are in stock, one must determine the average daily food costs and divide the dollar value of the ending inventory by the average daily food costs. To determine the number of inventory turnovers, it is necessary to divide the average number of days in a month open for business by the number of days in inventory.
SCHOOL
Month
Year
Beginning of the month inventory 5,000.00$
Plus Food purchased during month 10,000.00$
Minus Ending of the month inventory 3,500.00$
Equals Food value for month 11,500.00$
Food value for month 11,500.00$
Divide Number of days opened in month 15
Equals Average daily food value used 766.67$
Ending of month inventory 3,500.00$
Divide Average daily food value 766.67$
Equals Average number of days in inventory 4.6
Average number of days open in month 15
Divide Average number of days in inventory 4.6
Equals Average number of turnovers 3.3
Number of Day in Inventory and Inventory Turnovers
DIVISION OF SCHOOL & COMMUNITY NUTRITION
ABC
NOVEMBER
2011
References
Inventory Management for Child Nutrition Programs, NFSMI
Controlling Costs in the Food Service Industry,Dorothy Pannell-Martin