Recipe Based Costing

Achieve precise cost control with Z-Cloud POS’s Recipe Based Costing feature. This powerful tool allows you to calculate the exact cost of each dish based on ingredient quantities and pricing. Easily manage recipes, track variations, and update costs in real time to ensure accurate pricing and profitability. With detailed analytics and reporting, you can identify high-cost items, optimize your menu, and make data-driven decisions to maximize revenue. Whether you’re managing a restaurant, café, or bakery, Z-Cloud POS empowers you to maintain financial accuracy and improve operational efficiency.

The Z-Cloud POS system tackles the issue of recipe-based costing through several integrated features that allow for detailed tracking of ingredient usage and costs associated with each food item. Here's a breakdown of how the system handles this:

• Ingredient Management:
  • The system allows you to add ingredients with specific details like name, code, category, purchase unit, consumption unit, and conversion rate.
  • A purchase price can be set for each ingredient.
  • The system calculates a cost per unit for each ingredient based on the purchase price and conversion rate. The formula is: Purchase Price/Conversion Rate = Cost Per Unit.
  • If there is no purchase record for a selected ingredient, the unit price will come from the ingredient profile's cost field.
• Food Menu Creation:
  • When adding a food menu item, the system allows you to specify the ingredients used along with their consumption quantities.
  • The consumption unit for each ingredient is displayed next to the consumption field.
  • The system calculates the total cost of each ingredient by multiplying the consumption amount by the ingredient's cost per unit.
  • The system then sums up the total cost of all ingredients to arrive at the total making cost for the food menu item.
  • For ingredients that have been previously purchased, the system calculates the average cost of the last three purchases. If there are less than three purchases, the system will average them or use the single purchase price.
• Pre-made Food Integration:
  • Pre-made food items can also be included in recipes, which also have ingredient consumption and unit costs tracked.
  • The system calculates the cost of pre-made food based on the cost of the ingredients and the consumption units used in production.
• Modifier (Topping) Costing:
  • The system allows you to add modifiers (toppings) with their own recipes.
  • You can add ingredients with their consumption and cost for each modifier, allowing for detailed cost calculation of these extra items.
  • The cost of modifiers is incorporated into the total cost of the food item when a modifier is selected in POS.
• Cost Calculation for Sales:
  • The system uses the calculated total cost to help set the selling price of the food menu items.
  • The system will auto-populate the cost per unit, however the user can manually change it.
  • The system allows for different sale prices for dine-in, take-away, and delivery orders.
  • The system can also calculate the cost of combo items, based on the cost of all the component food items.
• Stock Management:
  • When selling a food item, the system deducts the stock of ingredients and pre-made food automatically.
• Reporting:
  • The system includes various reports, such as the product analysis report, which help in tracking the performance of food items.

In summary, the Z-Cloud POS system provides a comprehensive approach to recipe-based costing by tracking the cost of ingredients, pre-made food, and modifiers, which can then be used to help determine selling prices. This process ensures accurate cost calculations for each food menu item based on the ingredients and pre-made food used.