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Common Variances: Possible Causes and Solutions

Understanding Variance

Positive Variance (Red): You have used less inventory than was sold.

Negative Variance (Black): You have used more inventory than was sold.

Pour vs. Sale Variance

Positive Variance (Red)

Possible Causes:

• Pour data is not being recorded correctly.
• Draft beer variance: The poured amount does not match the portion size in the system (e.g., 14 oz poured vs. 16 oz sold).
• The product was sold but not actually poured.

Solutions:

• Ensure all pour tracking devices are connected and functioning.
•  Verify that beer and liquor are correctly calibrated to pour the intended amount.
• Train staff on proper pouring techniques to minimize discrepancies.
•  Check if staff are substituting one product for another when serving.

Negative Variance (Black)

Possible Causes:

• Sales are not being entered correctly.
• New products have been added to the POS but not linked to a recipe in the software.
• Waste or comps are not properly accounted for.

Solutions:

• Confirm that all new products are assigned to recipes in the system.
• Train staff to ensure accurate ringing in of sales.
•  Implement policies for recording comps and wasted products.

For additional help, contact support@idealinventory.com 

Inventory Usage Variance

Understanding Inventory Usage Variance

• Positive Variance (Red): You have used less inventory than was sold.
• Negative Variance (Black): You have used more inventory than was sold.

Positive Variance (Red)

Possible Causes:

• Purchases were not recorded.
• Opening inventory count was incorrect.
• Stock transfers were not logged properly.

Solutions:

• Verify that all recent purchases have been added to the system.
• Double-check opening inventory counts for accuracy.
• Ensure stock transfers are properly recorded.

Negative Variance (Black)

Possible Causes:

• Closing inventory count was incorrect.
• Stock transfers were not logged properly.
• Sales are not tracking correctly (new products not assigned to recipes).
• Waste or comps were not accounted for.

Solutions:

• Recount closing inventory for accuracy.
• Verify that all stock transfers are recorded correctly.
• Ensure new products are properly linked to recipes in the system.
• Implement proper tracking for waste and comps.

For additional help, contact support@idealinventory.com