Actual vs Theoretical Cost Summary Report
The Actual vs Theoretical Cost Summary Report allows you to compare your Actual Category Inventory values (taken during an Audit) with your Theoretical values based on what Items were purchased, transferred, and sold from each Category during the selected Period or Multi-Period. Refer to the steps below on how to view the Actual vs Theoretical Cost Summary Report.
Viewing Actual vs Theoretical Cost Summary Report
- Click Reports > Reports List from the navigation.
- Click Actual vs Theoretical Cost Summary under the Inventory heading.
- Filter by Period/Multi-Period.
- Click Go to view the results.
Some things to keep in mind
- Each column header on the report can be clicked on in order to reorganize the data.
For example you can click on Consumed to see in descending order which Category Items cost you the most to to sell in the selected Period or Multi-Period.
- Export the data in this report to Excel by clicking the download button in the upper right.
- A negative quantity variance oftentimes means that transfers, depletions and/or sales of given Items are not being accounted for correctly in the system. Make sure all transfers and depletions, including those related to spills and even theft, are being entered.
- A positive quantity variance oftentimes means that not all vendor invoices have been entered correctly into the system for given Items, thus understating Received.
- If you see exceptionally high variances in quantity or amount between your Actual and Theoretical values, drill down deeper using the Actual vs Theoretical Cost Details Report to isolate which Items may be causing at the root of these variances.
Category: Name of Category
Starting Inventory: Total $ value of Category Items physically counted at the beginning of selected Period or Multi-Period via Audit (end of previous Period)
Purchases: Total $ value of Category Items purchased through vendor invoices during selected Period or Multi-Period
Transfers: Total $ value of Category Items transferred in or out
Depletions: Total $ value of Category Items sales and spills
Actual Inventory: Total $ value of Category Items physically counted at the end of selected Period or Multi-Period via Audit
Actual Usage: Total cost of consuming all Items in a given Category during selected Period or Multi-Period
Theoretical Inventory: Start + Purchased + Transferred - Depleted
Variance Amt: This is the value of your variance and is calculated as a "true variance", so at a basic level, what you should have paid for all those items vs what you actually paid. So even if you have a Variance Qty of 0, if you overpaid for some items (when compared to your current CU Price), you would still have Variance Amt for the amount that you overpaid.
Variance %: (Variance Amount / Theoretical) * 100%