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Recipe Costing

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Recipe

Recipes are item records where Type = Recipe
To view recipes, go to Operations – Inventory – Recipes in the left hand ribbon and open the desired record.Recipe1
To create a new recipe go to ‘Item’ in the top ribbon, then select ‘New Recipe’ and a new ‘Recipe’ window will open. Fill in the following fields for each new recipe:

  • Fill out required fields:
  • General Tab
    • Name (required)
    • Available In Inventory
      • One key field is the Available In Inventory check box on the General tab.  If checked this allows you to have this recipe on Stock Counts, Item Transfers, and Waste Log transactions.  If checked the following fields must also be setup:
        • The Inventory tab will appear where you specify a Cost Account, Inventory Account, and Inventory U of M
        • You will also need to set the Recipe Cost Update Method on the Recipe tab.  There are two options:
          • Nightly – This option will activate a process that will run each night to update the recipe cost based on current cost of the ingredients for any recipe set to update nightly.
          • Manual – This option will allow you to update the inventory cost on demand.  To update the cost with this option, go to Item – Update Recipe Costs in the top main ribbon of the system.  Selecting this option updates recipe costs based on current cost of the ingredients for all recipes set to Manual or Nightly for Recipe Cost Update Method

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  • Recipe Tab
    • Yield Qty – this is the quantity the entire recipe creates (Must be numeric with two decimal places #.##)
    • Yield U of M – select the measure for the yield such as gallon, lb, etc
    • Default Portion Size – this is the quantity in 1 portion (Must be numeric with two decimal places #.##)
    • Default Portion U of M – select the measure for the portion such as tbsp, oz-fl, cup, each, etc
      • Note that Number of Portions is a calculation and will populate automatically once Yield and Default Portion fields have been populated. This field is important as it is used in some recipe costing reports
    • Recipe Cost Update Method – There are two options:
      • Nightly – This option will activate a process that will run each night to update the recipe cost based on current cost of the ingredients for any recipe set to update nightly.
      • Manual – This option will allow you to update the inventory cost on demand.  To update the cost with this option, go to Item – Update Recipe Costs in the top main ribbon of the system.  Selecting this option updates recipe costs based on current cost of the ingredients for all recipes set to Manual or Nightly for Recipe Cost Update Method
    • The remaining fields are informational fields
      • Prep Minutes
      • Cook Minutes
      • Finish Minutes
      • Shelf Life Days
      • Tools
      • Serving Plate
      • Storage Container

RecipeCostUpdate

  • U Of M Equivalence Tab
    • Create U of M equivalence if necessary.  In this example we are telling Restaurant365 that for this recipe, 1 ‘Each’ equals 16 ‘OZ-wt’ (Weighted Ounces).  Click here for more information on U of M Equivalence 

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  • Ingredients Tab – use this tab to add and edit ingredients for this recipe. Ingredients can be other recipes or purchased items with following fields:
    • Ingredient – lookup to items of type Purchased or Recipe
    • Qty – amount of the ingredient included in recipe
    • U of M – unit of measure for the ingredient included in recipe
    • Yield % – Defaults to 100% but can be changed. You would set a yield less than 100% if some of the ingredient is wasted in making this recipe. Some recipes may require you waste a portion of the item so in this case subtract the percent that you waste from 100% and put that as the yield %. If you waste 1/3 (33%) of an item when making this recipe then Yield % on that ingredient would be 67%. This field is used when calculating recipe cost
    • Instructions – record specific instructions for this ingredient if desired

Once you have entered the data for the ingredient, click on ‘Add’

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Repeat the steps for all remaining ingredients.

  • Steps – Use the editor to list out the steps for creating this recipe. Once you have completed updating the necessary field, click ’Save’.

 

Menu Item

A menu item record is created for each item listed on a sales ticket exactly as listed in the POS and can be edited by the user.

To review these items go to Operations – Sales – Menu Items in left hand ribbon and open the desired record.

Next, select a record to open and update the following fields:

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  • Name – update name if desired
  • Recipe – lookup the recipe associated with this menu item to link it for recipe cost reporting
  • Entrée – set if this item is entrée or not and that will be used on some reports
  • Target Margin % – specify target margin % you wish to make on this item
  • Estimated Cost – set this if desired, actual recipe cost will be calculated based on most recent purchases
  • Estimated Price – set this if desired, actual price will be calculated based on sales tickets
  • Category Fields – Specify category fields that will can be used to filter results on some reports. Note: Category 1 is required for reporting. To add a new Menu Item category, type the name of the new category in the category level field you want to add the category to and then hit ‘Enter’.  If the category does not exist then the system will prompt you to add it.

Use the following link for additional details on ‘Managing Menu Items’

 

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