How can I investigate Variances?

How can I research Variance Issues?

Users can review variances using the cost and variance, IvA, and TvA reports. It is best to research as soon as possible after an inventory is recorded and entered into Decision Logic.

When users find ingredients with a large variance and out of range for the brand’s standard, take the following steps to help find a solution:

Confirm both beginning inventory and ending inventory values are correct.
Review purchases (orders received), credits, and IUTs (inter-unit transfer) to ensure all products were received at the correct quantities, prices, and dates.
Review Ideal Usage on the Product Details page to verify all products are depleting inventory correctly by looking at the Recipe Units
Verify that the Menu Numbers for all menu items and modifiers sold under Ideal Usage on the Product Details page are accurate.
If all data entered into Decision Logic is correct, and all ingredients are depleting accurately from recipes, take into consideration the following:
1. over portioning
2. under portioning
3. theft
4. waste

Why does my Actual Usage look incorrect?

A large variance indicates an issue with the data entered into Decision Logic on one or more of the major data points.

After validating that the data is correct, if a large variance persists, this is a strong indication of the need for store training on controlling the product prep methods, receiving orders (purchases, credits, and IUTs), and entering inventory.

Actions to take to correct your Actual Usage:

Correct inventory quantities.
1. Open or edit the inventory.
2. Request a change to a posted inventory.
Receive orders (purchases, credits, and IUTs) that have been delivered (electronic and/or manual) in Ordering Home.
1. Verify the date received is accurate or make edits to the date if inaccurate.
2. Edits to purchases (orders) can be made in the Order History.
3. Edits to Invoices.
Verify that the Bid File information is accurate. This is typically handled by a DL Admin or Decision Logic’s Client Service team.
1. Example: Conversions could be wrong with the Recipe Mx on the Product Details page
  1. Recipe Mx is how many recipe units exist in one inventory measure.
2. Update Bid File information.
3. Run Bid File Updates Reconciliation.
Verify prep recipes are accurate. This is typically handled by a DL Admin or Decision Logic’s Client Service team.
1. Review the Prepped Items or Recipe Book for prepped items.
2. Make edits if needed and run DL Updates.

Any bid file corrections to MX or Price that need to be applied to purchases beyond the current week require you to request a COGS update by submitting a support ticket with our Decision Logic Service Center.

Why does my Ideal Usage look incorrect?

This may look incorrect due to missing menu items or modifiers or incorrect recipe build or prepped items.

Actions to take to correct your Ideal Usage:

Verify that the Quantity Sold on the Product Details matches the quantity sold from the POS.
1. Rerun sales for that week from End of Day or UDT.
2. Check the POS Exceptions (step 4)
  1. After mapping, then rerun sales from End of Day or UDT.
  2. Run DL Updates.
3. Confirm that the necessary menu item hierarchy has been mapped.
Verify prep recipes are accurate. This is typically handled by a DL Admin or Decision Logic’s Client Service team.
1. Review the Prepped Items or Recipe Book for prepped items.
2. Make edits if needed and run DL Updates.
Verify recipe builds are accurate. This is typically handled by a DL Admin or Decision Logic’s Client Service team.
1. Review in Menu Maintenance or Recipe Book.
2. Make edits if needed and run DL Updates.
Check POS Exception for missing menu mix, which includes menu items and modifiers. This is typically handled by a DL Admin or Decision Logic’s Client Service team.
Update Menu Maintenance to import missing menu mix, add recipes, or remove stores from duplicate menu sets.
1. Make changes in Menu Maintenance for Bulk Import if many items are incorrect.
2. If only a few are incorrect, add a new menu item in Menu Maintenance.
3. Add the Menu Item to a Menu Set.
4. Qty sold can be incorrect if you have a store on two menu sets where the menu item exists on both sets. A menu item should only exist on 1 menu set for the store.

Please try all of the actions above. If none of these fix the discrepancy, submit a ticket to Decision Logic’s Service Center.

Why is my TvA dollar amount different than the IvA variance dollar amount?

This is typically a result of the TvA Store Summary report being updated for historical weeks via the DL Updates page before a COGS update was made. The TvA report calculates the price either off FIFO or the Market Value accounting method that is set up for your Cost of Goods Sold calculations.

Best Practice for updating historical pricing across all reporting:

Correct the bid file.
1. Perform a Bid File Updates Reconciliation to update reports. You can do this for orders up to 4 weeks in the past. You do not need to submit a ticket for this.
Users will need to place a COGS, IvA, or TvA update request ticket in the following scenarios after correcting a bid file:
1. Change to the broken case configuration.
  1. Broken case flag.
    1. Whether or not it is a broken case item.
  2. Broken case option.
    1. Which type of broken case item (case/each/both).
  3. Case break multiplier.
2. Change to the catchweight method.
  1. Whether it is lb (pound) or case.
3. Need an update going back further than 4 weeks.
Once the update is complete Run IvA/TvA updates. If a ticket is submitted, Decision Logic will perform this step.

DL Updates will change data, potentially in unintended ways, depending on what changes have occurred on. your site for the time period you have chosen.

Table of Contents

1 How can I research Variance Issues?
2 Why does my Actual Usage look incorrect?
3 Why does my Ideal Usage look incorrect?
4 Why is my TvA dollar amount different than the IvA variance dollar amount?