How the cost of ingredients and products is calculated
For ingredients and products, Poster uses the weighted average cost method. It's determined by the formula:
total value of stock on hand / quantity of stock on hand
For example, you received two supplies of oranges:
- 10 kg at $3,
- 5 kg at $5.
The system then calculates the average cost like this:
(10 кг × $3 + 5 кг × $5) / (10 кг + 5 кг) = $3,67 per 1 kg of oranges.
This is the value used both for the write-off of stock and for calculating the cost of dishes.
How the cost of dishes and preparations is calculated
The cost of dishes and preparations consists of the total cost of their ingredients.
For example, Poster will calculate the cost of the «Avocado Caprese» dish as a sum of the cost of the components of the dish:
$1,20 + $0,85 + $0,10 + $0,01 + $0,01 + $0,04 + $0,01 = $2,22
The cost of manufactured dishes and preparations is the sum of the cost of their ingredients in stock at the time of manufacture.
If an ingredient isn't in stock
If there isn't enough of an ingredient in stock — for example, stock went negative because a supply is missing — Poster uses the last known weighted average cost of that ingredient.
If there's no supply history at all, the cost of the dish in the recipe and in reports will show as $0, and the dish itself will be marked in orange.
Limitations
- The cost of ingredients and products is averaged over the period between the last full inventory check and the next one. To stop the cost from being averaged, run an inventory check.
- The supply date affects the cost recalculation in sales. If it's earlier than the sale date, the cost recalculates automatically. If it's later, nothing changes in a sale that's already been processed.
- You can't change the cost manually in a product, ingredient, or dish.
If the cost didn't calculate, or calculated incorrectly, after adding a supply, message us in chat — we'll help find the cause.