Inventory
Inventory Variance Calculator
My pour cost is high. Is it pricing, over-pouring, or theft?
Theoretical cost is what your recipes say you should have used. Actual usage is what the count says you did use. The difference is over-pouring, spillage, comps you did not ring in, breakage, or theft, and it has a dollar value.
Your numbers
Pre-filled with a worked example so you can see how it behaves. Type over any field with your own figures. Nothing you enter is sent anywhere.
The answer
How this is calculated
Actual usage = opening inventory + purchases − closing inventory
Theoretical usage = sales × theoretical cost %
Variance = actual usage − theoretical usage
Actual cost % = actual usage ÷ sales × 100
What this does not tell you
- Count the same items in the same way each period. Most surprising variances are counting errors, not theft.
- Open bottles need a consistent method, whether that is tenths, weighing, or a measuring stick. Changing method mid-year makes the trend meaningless.
RollCall Media
Three free newsletters for people who run rooms.
Written for operators, not for the algorithm. One useful idea per edition, sources linked, no pitch. Free, and always will be.
Run the RoomOperations, service, and the arithmetic behind a shift that works.
Women Who Own the NightOwnership, leadership, and the operators building the next rooms.
Before Bar TwoWhat it actually takes to open a second location.