The Actual vs Theoretical Analysis compares the theoretical cost of certain inventory items or categories against actual data, in terms of both quantities and dollar amounts. The user can drill down into the transactions that make up the numbers and view summary information by category for a Controllable Cost of Goods approach to analysis. 


Overall, this report provides a deeper dive into the quantity and cost of each menu item to find solutions to limit the biggest item variances. For more information, see Troubleshooting Variances in an AvT Report. To watch a video explaining the benefit of running the AvT Analysis report for your organization, view Tip #5 of R365's 'Back to School' Tips & Tricks.


Important Note: The Actual vs Theoretical Analysis is not intended to tie back perfectly to Inventory Count/Financials. This report uses one static unit cost for an item for the period, rounds recipe conversions, and does not include any purchases made outside of the AP module, such as paid outs. The main purpose of this report is to provide quantities and approximate costs of each item so that the largest variances can be addressed and reduced. 


Article Topics

  1. In the Reports section of the left navigation pane, select My Reports.
    The My Reports screen appears.
  2. At the top of the My Reports screen, select Purch. & Inv.
    The screen generates a list of reports in alphabetical order.
  3. Locate the Actual vs Theoretical Analysis.
  4. Select Customize to adjust the report parameters and run the report.


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Report Parameters


FieldDescription
From CountStarting inventory count from which to pull data. The From Count and To Count selections create a date range for the generated report displays data.
To CountEnding inventory count from which to pull data. The From Count and To Count selections create a date range for the generated report displays data.
Key Items OnlyIf Yes is selected, the report includes key items only.
If No is selected, the report includes all items.
Show UnapprovedIf Yes is selected, the report includes data from unapproved transactions.
If No is selected, the report only accounts for approved transactions.

Note: Yes is selected by default. This facilitates accounting staff, allowing them to close the period at their discretion, but operations can continue to run vital reports in real time without waiting for all transactions to be approved.
Count Time

Time of day from which transactions are pulled. Options include:

  • Beginning of Day - Uses transactions from the DAY OF the From Count to the day BEFORE the To Count.
    Example: If Count From is set to 02/10/YY and Count To is set to 02/17/YY, the report uses transactions from 02/10/YY to 02/16/YY.
  • End of Day - Uses data from the day AFTER the From Count through the DAY OF the To Count.
    Example: If Count From is set to 02/10/YY and Count To is set to 02/17/YY, the report uses transactions from 02/11/YY to 02/17/YY.
Item Category 1, 2, 3Filters the items that appear in the report by the selected item categories.
Subtotal BySorts and subtotals item categories. Recommended: Categories 1+2.
Show % of SalesIf Yes is selected, the Actual %, Theo %, and Variance % columns appear in the report.
If No is selected, the report does not display these three columns.
Sales AccountFilters the report to show data for selected sales accounts.
Subtotal By CategoryIf Summary is selected, the report displays amounts by category.
If Details is selected, the report displays amounts by category and by item.
Efficiency Calculation (Waste)Users can choose whether to include or exclude waste in percentage calculations.
Efficiency Calculation (Donations)Users can choose whether to include or exclude donations in percentage calculations.
Actual Usage Dollar

Determines whether item costs are based on the:

  • Transaction Cost - Pulls the actual item's cost from either the last invoice or inventory count based on the selected Count Time.
  • Unit Cost - Pulls the item's current inventory cost from the Item record as of the time the report was generated. If using item locations, this option pulls cost data from the store's item location.
  • End Count Cost - Pulls the cost of all items from the ending inventory count used for this report.
Waste CalculationsShows or hides inventory that was documented in the waste count.
Donation CalculationsShows or hides inventory that was documented in the donation count.
Items to DisplayIf Counted Only is selected, the report shows only inventory count items.
If All Items is selected, all purchased items are included in the report.
View optionsProvides the user with options to select, save, edit, or delete a report view.
For more information about these controls, see My Reports: Using My Reports.
RunGenerates the report.
The green arrow button opens a drop-down from which users can Export, Email, or Print the report.


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Report Columns



The header displays the following information:

  • Begin Inventory - First inventory count included in the report.
  • End Inventory - Final inventory account included in the report.
  • Net Sales - Total net sales for all items in the report.


ColumnDescription
Operating Reporting CategoryOperating reporting categories broken down into item categories and then into items.
Count UofMUnit of measure for each item as used when conducting an inventory count.
Unit CostCost per unit.
Quantity Usage
BeginStarting quantity of each item as shown in the first inventory count that was included in the report.
PurchQuantity of items purchased for the location.
TrnsferQuantity of items transferred to or from the location.
EndFinal quantity of each item as shown in the last inventory count that was included in the report.
ActualActual number of items used. When expanded, the Beginning Amount, Purchased Amount, Transfer Amount, and End Amount appear.
TheoTheoretical number of items used.
VarDifference between the actual amount and the theoretical amount.
WasteNumber of items that were not used and therefore went to waste.

Note: This column appears only if Show is selected on the Waste Calculations parameter.
DonationNumber of items that were donated.

Note: This column appears only if Show is selected on the Donation Calculations parameter.
UnExpl VarDifference between variance and waste. This column can help users better understand why certain items have larger variances than others.
EffcyThe theoretical quantity over the actual quantity used. This shows how efficiently this item is being used.
Dollar Usage
ActualActual cost of the item. When expanded, the Beginning Cost, Purchased Cost, Transfer Cost, and Ending Cost appear.
Theo

Theoretical cost of the item. If the Actual Usage Dollar parameter is set to Transaction Cost, the amount calculated as:

  • Calculation: ((cost per UofM from the first Inventory Count until the next) multiplied by (number of times the item was sold during that time)) + ((cost per UofM from the second Inventory Count up until the next) multiplied by (number of times the item was sold during that time)) + and so on, based on the time range selected in the report. The total is then divided by the total quantity of transactions.
  • Example: If a Inventory Count was taken on 1/4/21 with the item costing $5.37 per UofM and then the next was taken on 1/11/21 with the item costing $5.43 per UofM, when the report is generated for 1/7 - 1/14, all transactions from 1/7 - 1/10 use the first $5.37/UofM cost, and all transactions from 1/11 - 1/14 use the second $5.43/UofM.
    (($5.37 x (# of items sold from 1/7 - 1/10)) + ($5.43 x (# of items sold from 1/11 - 1/14))) / total # of items sold.
VarDifference between the actual cost and the theoretical cost.
WasteCost items that were not used and therefore went to waste.

Note: This column appears only if Show is selected on the Waste Calculations parameter.
DonationCost of items that were donated.

Note: This column appears only if Show is selected on the Donation Calculations parameter.
UnExpl VarDifference between variance and waste. This column can help users better understand why certain items have larger variances than others.
EffcyThe theoretical cost over the actual cost of items used. This shows how efficiently this item is being used.
% of Sales
Actl %Percentage of actual sales.

Note: This column appears only if the Show % of Sales parameter is set to Yes.
Theo %Percentage of theoretical sales.

Note: This column appears only if the Show % of Sales parameter is set to Yes.
Var %Difference between actual percent and theoretical percent of sales.

Note: This column appears only if the Show % of Sales parameter is set to Yes.



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Email, Export, or Print the Report



This report can be emailed, exported, or printed in custom formatting directly from the reporting window. Click here to learn how to send, export, or print this report.


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