How do invoices turn into cost of goods for the month?
Cost of goods for the month is opening inventory plus purchases minus closing inventory. Purchases come from the month's invoices, less credits, with deposits left out.
It reads the invoice, you check the lines it flags.
Steps
- Gather every invoice dated in the month.
- Take off the credit memos.
- Leave the deposits out.
- Split what is left by category: liquor, wine, beer, non-alcoholic and food.
- Count inventory at month end.
- Do the math for each category: opening inventory plus purchases minus closing inventory.
- Divide each category's cost of goods by that category's sales for the cost percentage.
Where PourParse fits
Read each invoice into a spreadsheet with PourParse, so the month's purchases are lines you can total by category instead of typing them. Sign in and your first 5 reads are free, then $5 a month for up to 50 reads a month. PourPar, the app PourParse comes from, does the bar inventory count and reads invoices from a photo, so the count and the purchases sit in one place.
Questions
- Do deposits count as purchases?
- No. A deposit comes back when the empty goes back, so leave it out of purchases.
- Should you use the invoice date or the delivery date?
- Pick one and use it every month. Switching halfway moves purchases between months and throws off the cost percentage.
- What does PourParse do?
- It reads a supplier invoice, a PDF or a phone photo, and gives you every line with its item, quantity, unit price and line total, ready to download for Excel, or as CSV or JSON. Lines it is not sure of are flagged for you to check.
- What does it cost?
- The first 5 reads are free, once per account, and need no card. You sign in to read your own invoice. After that it is $5 a month for up to 50 reads a month, and you can cancel any time.
- Which invoices does it read?
- Food, beverage, produce, dairy and supply invoices from any distributor, as a PDF or a phone photo. Drop several at once and each is read on its own, two at a time. Photos up to 3 MB, PDFs up to 1.5 MB and four pages.
- What happens to my invoice?
- Nothing is kept, not the file and not the lines. Download the spreadsheet before you leave the page. If you send us a read with Have an issue? Let us know, we get that invoice by email to fix the reader and delete it once it is fixed.
- Who makes it?
- PourPar, which also makes drink costing, prep and ordering tools for bars and restaurants.