CULISYS H29 1/11/12
Materials Cost Orientation
 Primarily concentrates on the cost of raw
materials particularly the cost of F&B sold
o Cost of acquisition > more
expensive than other expenses
o Food is highly perishable > prone
to deterioration
o Overhead expenses > fixed and
uncontrollable
Sequence of Control
 Setting of Goals > Return of Investment
(ROI) – Owner/Management
 Planning/Menu > Exec. Chef/F&B Manager
 Purchasing > Purchasing Manager
 Receiving > Receiving Clerk
 Storing & Issuing > Storekeeper
 Production (Kitchen/Bars) > Exec. Chef/Bar
Manager
 Service > F&B Outlet Manager/Waiter
 Inventory > Cost Controller
 Sales > Accounting
Manual vs. Computerized
Manual system can be computerized – management
can be free to:
 Service guests
 Build employee morale
 Plan for the future of business
Application Areas
Menu Construction
Sales Forecast
Recipe Expansion
Recipe Costing
Micros
1977 – Largest U.S. based supplier of point of sales
and information management solutions – exclusive
to hotels and restaurants
Fidelio
1987 – leading international provider
Micros Fidelio
11/30/1995 – merged Micros and Fidelio, creating
the largest global solutions provider for hospitality
automation
Materials Control
 All-inclusive procurement, inventory control
and cost control system customized in order
to meet the special needs and requirements
of the hospitality industry.
 Aims to effectively manage all property
inventory, bringing a new level of efficiency
to operations
 Includes:
o MC Lite (all functions, single user
and up to 7 storehouses)
o MC Standard (all functions;
limitless storehouses)
o MC Web
Real-time F&B Management
 Efficiency to daily workflow
Analytical Data
 Cost of sales – revenue analysis
  Stock on hand, ordering templates and par
lists
 Review information per
outlet/property/portfolio
 Proactive rather than reactive
 Increase of data validity for all departments
 Minimize labor intensive month-end
reconciliation and accounting processes
Enhance workflow efficiencies
 Multi-level purchasing authorization –
monitors cash flow and minimizes
overstocking
 Transmission of purchase orders via
email/fax
 Enhanced B2B – interface direct to
supplier/s
 Implement paperless internal requisitions
Features/Benefits to Business
 Ordering
 Receiving
 Storing
 Cost of Sales
 Deployment
Streamline Inventory Management
 Consolidation of orders – collection of
requisitions from different departments
 Simplification of requisitioning – Business to
Business interfaces
 Increase of Data Validity
 Accessibility and Centralized Reporting
Reduce Costs
Cooking with Profit
Assignment/Homework#1
Bring a print-out of the following:
a) 6 Food Recipes [Apps, Salad, Soup, Main
Entrée(1 meat, 1 seafood), Dessert]
b) 4 Beverage Recipes [Juice(Fresh), Coffee,
Tea, Cocktail Drink)
Purchased Materials & Acquired Services = 30-45%
Materials Management
 Recognizes that materials procurement goes
beyond basic buying
 Views material flow as an integrated system
Materials Control
Ordering of materials to receiving and issuing
Functional Division of MC
 Purchasing
 Receiving
 Storing and Issuing
 Accounting
Purchasing
 Receives/prepares purchase requisitions
 Prepares and places purchase orders
 Approves vendor’s invoices
 Sends approves invoices to the general
accounting department for entry
Receiving
 Receives the goods
 Counts, weighs, verifies the quantity of the
goods received
 Inspects quality of goods; reports damage
or breakage
 Moves goods to the storeroom
  Sends copies of the receiving report to the Adjacent Cost
purchasing and storing departments
Cost per Serving
Storing
Serving Price
 Receives and acknowledges the goods from
Food Cost %
receiving dept.
 Verifies the quantity received
If the measurements are in English, convert to
 Places the goods in the proper bins, shelves
metric
or yards
 Issues materials on properly authorized
requisitions
 Enters receipts and issuances on the bin
cards

1/16/12

Accounting in the Storeroom

Formulas:
 Recording on cards the quantity & cost of
materials received and issues Selling Price = [Food Cost/Food Cost%] x 100

FORMS AND REPORTS USED IN MATERIALS Food Cost% = [Food Cost/Selling Price] x 100
CONTROL
P50/serving
1. Purchase Requisition
2. Purchase Order FC=40%
3. Receiving Report
4. Stores Ledger Card 50/.4 = P125
5. Bin Card
6. Materials Requisitions
7. Returned Materials Report
8. Scrap Report
9. Returned Purchases Report P125 = x/.4
10. Spoiled Materials Report
125(.4) = 50

HW#2
MASTER DATA – Heart of the Information System
Choose 3 recipes and compute for the following:
Cost Center/Stores
Total Cost
- Business hierarchy
Buffer
Types of Cost Center/Store

Inventory (warehouse/main store)

Store

Cost Centers – stores in w/c receipt postings are

added as usage and are not used as warehouses

Statistics Stores – only used to group sub-stores for

reports purposes (groupings)

Group Master Data/Group Structures

Levels of Article Master Data

OVERGROUPS – highest level

MAJOR GROUPS

ITEM GROUPS

ARTICLE

Expense Article Master Data

EXPENSE OVERGROUP

EXPENSE MAJOR GROUP

EXPENSE ITEM GROUP

EXPENSE ARTICLE GROUP