Inventory Records

Valerie Crouch, SNSChild Nutrition Program

ConsultantSchool and Community

Nutrition Kentucky Dept. Of Education

Inventory Records are used to:•Provide information regarding food and supplies in stock.•Determine purchasing needs.•Provide data for food cost control.•Control theft and pilferage.

Inventory Control

The first step to good inventory control is a system of counting inventory.The two systems of counting inventory are perpetual and physical.With a perpetual inventory a physical inventory is still necessary, but a physical inventory can be kept without a perpetual.

Perpetual Inventory

• Perpetual inventory requires updating the balance on hand by adding each item received on the invoice and subtracting the count of items issued from storeroom.

• At any given time the balance on hand should be the amount in inventory.

• Perpetual inventory is an excellent way to use inventory levels when planning purchases. Item numbers can be added with product name for referencing when ordering.

• The accuracy of the perpetual inventory should be checked at least monthly by taking a physical inventory of all items.

Perpetual InventoryYour School

Perpetual Inventory

Item DescriptionBalance brought Forward

Amount Received and Amount Used Ending Inventory

Breakfast page 1

(Be sure to include losses or transfers both In and Out) (NOTE: Bold In/Out indicates previous day's usage.) Daily

Activity Total

Actual Physical

InventoryCase Price Total ValueDates:     ~ September, 2010 ~              

(State size of smallest unit)   1 2 3 6 7 8 9 10 13 14 15 16 17 20 21 22 23 24 27 28 29 30 31

                                                  0     0

Bacon Sandwich 125141                                                 0   25.32 0

Biscuit Dough 618152                                                 0   30.1 0

Cereal Apple/Cin Cheerios 509426                                                 0   20.87 0

Cereal Cheerios 534765                                                 0   20.87 0

Cereal Cheerios Hny/nut 509396                                                 0   20.87 0

Cereal Fflakes RS 388190                                                 0   24.82 0

Cereal Kits FF561830/AJ561840/lFL 561821

                                                0   44.69 0

French Toast Cinn.Glazed 577560                                                 0   63.82 0

French Toast Sticks 725380                                                 0   37.27 0

French Toast Sticks WG 725380                                                 0   63.82 0

Frozen Egg Patty 462519                                                 0   14.69 0

Good Gravy Pizza 154733                                                 0   43.15 0

Mini Maple Wraps 214124                                                 0   38.54 0

Mini Pancakes Map.778201/Str778210

                                                0   30.33 0

Muffins blueberry 577006                                                 0   24.63 0

Muffins choc. 508454                                                 0   32.13 0

Pancake & Saus. on Stick 189782                                                 0   19.67 0

Sausage Patty 112630                                                 0   18.17 0

Syrup 160090                                                 0   19.88 0

WG poptart BS 695880/Str. 695890                                                 0   36.73 0

Yogurt 551760                                                 0   13.91 0

Your School ~ September, 2010 ~ Total Inventory: 0 0 0

** The 'Daily Activity Total' column and the 'Actual Physical Inventory' column should match. You may make small notations on the form if there is loss or discrepancies. Revised 8/5/2008

Physical Inventory

• Physical Inventory is the process of physically counting the entire inventory. You can use the optional D-6 form or develop a physical inventory form based on the market order form and the physical layout of the storeroom.

• Determine a standard procedure to count broken cases. Recommendation: Count by can, and/or by piece (for whole turkeys or hams).

• A physical inventory should be taken prior to placing orders.

Commodity vs. Purchased Food Inventory

A separate inventory for commodities is not required.

Treat commodities like other foods you purchase, store, and use.

Daily Goods and Services Received and other Direct Cost (D-5)

   

Date

   

DESCRIPTION(Vendor, Invoice

Number, Etc.)

  

PURCHASED FOOD &

MILK

 EXPENDABLE EQUIPMENT(Value Under

$1000.00)And

Expendable Supplies

 PURCHASED

SERVICES(Garbage,

Linen Service, Pest Control,

Etc.)

 DISTRIBUTION

OF PURCHASED

FOOD COMMODITIES AND SUPPLIES

 

 EMPLOYEE

FRINGE BENEFITS (Matching

Retirement & FICA,

Insurance Etc.)

  

UTILITIES(If Paid

FromFood Services)

   

MISCELLANEOUSCOST

  

VALUEof USDA

COMMODITIES

RECEIVED

  

DONATEDGOODS

AND SERVICES

A B C D E F G H I J K

                     

                     

                     

                     

                     

                     

                     

                     

                     

                    Non-Expendable

                    Equipment

                     

                     

                     

                     

TOTALS$ $ $ $ $ $ $ $ $

NHS-D5 DAILY GOODS

AND SERVICES

RECEIVED AND

OTHER DIRECT COST

    TOTAL OTHER DIRECT COST ADD COLUMNS D THROUGH I $

 

D-5

• Full purchase price (not NOI discounted price) is recorded on the inventory and on the D-5 in Column C.

• For brown box delivery, record FMV (purchase price from your current bid) on the inventory report fair market value in Column C.

• Column J is no longer used on the D-5.

D-6

• At the bottom of the D-6 form is the equation used to calculate the value of food and milk used monthly.

• Each site will need to complete the equation monthly.

NHS D-6 – Optional Form Note: Drop Cents from this form

DIVISION OF NUTRITION AND HEALTH SERVICES KY DEPARTMENT OF EDUCATION

PURCHASED FOOD & MILK INVENTORY

MONTH YEAR Beginning Inventory $ Page of

(Previous month’s ending inventory) School, School Food Authority or Sponsoring Agency Storeroom Location

Ending Inventory Of Current Month

ITEM DESCRIPTION

TOTAL UNITS

COST PER

UNIT

TOTAL COST

Ending Inventory Of Current Month

ITEM DESCRIPTION

TOTAL UNITS

COST PER

UNIT

TOTAL COST

(A) (B) (C) (D) (E) (F) (G) (H) X = X =

X = X =

X = X =

X = X =

X = X =

X = X =

X = X =

X = X =

X = X =

X = X =

X = X =

X = X =

X = X =

X = X =

X = X =

TOTALS TOTALS (D)

H. Total from Column D + H $ (J) Value of Ending Inventory $

CALCULATION TO ARRIVE AT VALUE OF FOOD AND MILK USED BEGINNING INVENTORY

+ PURCHASED FOOD & MILK RECEIVED

= VALUE OF FOOD AVAILABLE

- ENDING INVENTORY

+ or - ADJUSTMENTS TO INVENTORY

= VALUE OF FOOD USED

(K) + (L) = (M) - (N) + or - (O) = (P) $

+

$

=

$

-

$

+ or -

$

=

$

SCN-D6

NOTE: Drop cents f rom this f orm

SCHOOL

MONTH YEAR

K. Beginning I nventory $ -

plus

L. Purchased Food and Milk Received $ -

equals

M. Value of Food Available $ -

minus

N. Ending I nventory $ -

plus or minus

O. Adjustments to I nventory $ -

equals

P. Value of Food Used $ -

PURCHASED FOOD AND MILK INVENTORY

NOVEMBER 2011

~~ ~~ ~~ ~~ ~~ ~~ ~~

CALCULATI ONS TO ARRI VE AT VALUE OF FOOD AND MI LK USED

ABC

Calculation to Arrive at Value of Food and Milk Used

K. Beginning Inventory - ending inventory from the month prior.(plus)L. Purchased food and milk received – Total of Column C from the D-5.(equals)M. Value of Food Available for that site for during the month. (minus)N. Ending inventory – the value on the last day of the month. (add or minus)O.Adjustments to Inventory – Any increase/decrease in the inventory due to, for example, loss of food by theft/spoilage or transferring food from one school to another. (equals)P. Value of Food Used

SCHOOL

MONTH YEAR

K. Beginning I nventory $10,000.00

plus

L. Purchased Food and Milk Received $ 4,500.00

equals

M. Value of Food Available $14,500.00

minus

N. Ending I nventory $ 7,500.00

plus or minus

O. Adjustments to I nventory $ 100.00

equals

P. Value of Food Used $ 6,900.00

NOVEMBER 2011

~~ ~~ ~~ ~~ ~~ ~~ ~~

CALCULATI ONS TO ARRI VE AT VALUE OF FOOD AND MI LK USED

ABC SCHOOL

PURCHASED FOOD AND MILK INVENTORY

Days and Turnover of InventoryOne of the best ways of determining if the inventory is too high is to determine how many days of inventory are in stock or how many turnovers in inventory are occurring each month. Ideally there would not be any more in inventory at any one time than is needed before the next delivery. If there are weekly deliveries, no more than seven days of inventory are needed. To determine how many days of inventory are in stock, one must determine the average daily food costs and divide the dollar value of the ending inventory by the average daily food costs. To determine the number of inventory turnovers, it is necessary to divide the average number of days in a month open for business by the number of days in inventory.

SCHOOL

Month

Year

Beginning of the month inventory 5,000.00$

Plus Food purchased during month 10,000.00$

Minus Ending of the month inventory 3,500.00$

Equals Food value for month 11,500.00$

Food value for month 11,500.00$

Divide Number of days opened in month 15

Equals Average daily food value used 766.67$

Ending of month inventory 3,500.00$

Divide Average daily food value 766.67$

Equals Average number of days in inventory 4.6

Average number of days open in month 15

Divide Average number of days in inventory 4.6

Equals Average number of turnovers 3.3

Number of Day in Inventory and Inventory Turnovers

DIVISION OF SCHOOL & COMMUNITY NUTRITION

ABC

NOVEMBER

2011

References

Inventory Management for Child Nutrition Programs, NFSMI

Controlling Costs in the Food Service Industry,Dorothy Pannell-Martin