ISSUING CONTROL

By:- Ashish GuptaRoll No:- 4154th Semester

Introduction

For proper control at this stage of control cycle, no food-stuff should be issued without proper requisitions. The main objectives in issuing food are: -

1. To ensure the proper authorization for the release of merchandise.2. To account properly for daily food issues.

Product Issuing

A well-designed issuing system has the following objectives :-■ To limit access to storage areas to authorized staff members only.■ To match items removed from storage with actual production requirements.■ To assess quantities and costs of products removed from storage. This record

keeping becomes important when updating perpetual inventory records. This record is required for assessing costs of issues to calculate daily food and beverage costs.

■ The requisition forms can be used to provide information for daily cost calculations or to update perpetual inventory records.

■ Issuing should be limited to specified times.■ Beverages to replenish bar inventories are issued either at the beginning or end of

each bar shift.

The Food Requisition / Issue Process

1. The form identifies each item to be withdrawn from storage.2. The purchase unit size of each item needed.3. The quantity of each item needed is based upon the recipes to be

used during the required time period minus any products already withdrawn from inventory and available in production.

Product security can be achieved if a few principles are observed:

1.Food, beverages, and supplies should be requisitioned only as needed based on approved production schedules.

2.Required items (issues) should be issued only with management approval.

3.If a written record of issues is to be kept, each person removing food, beverages, or supplies from the storage area must sign, acknowledging receipt of the products.

4.Products that do not ultimately get used should be returned to the storage area, and their return recorded.

Food Requisition Form Food Requisition

 Storage Type (Check one) : Date : ________________Refrigerated _________________________ Work Unit : __________________Frozen ______________________________ Approved for withdrawal __________Dry ________________________________ 

Item Purchase Unit

No. of Units Unit Price Total Cost Employee Initials

Received by (Consuming Dept.)

Withdrawn By (Storage Dept.)

Col.1 Col.2 Col.3 Col.4 Col.5 Col.6 Col.7

             

             

             

             

      Total      

Requisition

■ This is a form used for taking goods from issuing department. Concerned head of the department containing information like name, unit cost, total cost and signature, issued and balance prepared it.

■ This is also known as indenting. ■ Operating cost of kitchen is deduced from this form and gross profit

calculated. ■ It is prepared in triplicate one goes to issuing the other to F & B control

and the last remains with the copy.■ It is vital that a copy of the storeroom requisition form be sent to the

purchasing agent after it has been used so that this individual will have a sense of the movement of product in and out of the storage areas.

■ After production personnel complete the form, it goes to the chef.■ Then, the form goes to the appropriate storage area.■ The storage or management employee responsible for issuing verifies that

items listed were indeed withdrawn by initialing column.■ After issuing is completed, the items should be transferred promptly to the

appropriate production occurred.■ When all daily issues are finished, the storeroom or controls personnel may

use the forms to update perpetual inventory records■ The food requisition forms for the day can be forwarded to the F & B Controls

department to review and to use in calculating the daily food cost information.

Transfer notes

■ This is an internal form of requisition note, which is used when a department requisitions something from another department which is not in stores.

■ The format of the form used can be same as that used for the store requisition

■ The transfer notes and requisition notes are sent at the end of the day to the controller’s office.

Breakages and Damaged Goods

■ Items becomes broken or found to have leaked away, etc. These items must be recorded in a damaged goods book.The book would record the

■ Date, ■ Description of items, ■ Details of from whom it was purchased, ■ Value, ■ Signature of the purchasing officer who verified the damaged goods to

restrict unexplained difference in the actual stock

Pricing of issues

In a department there must be a system established so that the department can be fairly charged for what it has requisitioned for its use.

The method of pricing the food issued depends mainly on the type of commodities in question.

■ Perishables■ Non Perishables

Perishables

■ Actual Purchase Price■ Perishable commodities as already stated they frequently go direct to

the kitchen as direct issues and priced against the actual purchase price of the commodities

Non Perishables

■ Actual Purchase Price■ Simple Average Price■ Weighted Average Price■ Inflated Price: Here the goods are issued at cost plus, say 10 or 15 %

to recover the cost of handling and storage charged.■ Standard Price: A Standard Price is to decide on for a given period,

usually 3-6 months

Cont..

■ Last In First Out (LIFO): This may be applied to items which have a fluctuating market price. This assumes that issues will be made with the normal rotation of stock, but priced out at the latest purchase price for the items.

■ First In First Out (FIFO): This may also apply to items which have a fluctuating price. This assumes that issues will be from the earliest purchases and priced accordingly.

Transfers

Food or beverage products may be transferred from one food service unit to another. For example, it is likely that fruit juice, vegetables, and similar items are taken from the kitchen for use in the bar, while wine, sherry, and similar items may be taken from the bar for use in the kitchen.

Transfers out of the kitchen are subtracted from the cost of food sold and transfers in to the kitchen are added to the cost of food sold.

■Intraunit Transfers■Between Bar and Kitchen

– Cooking wines and spirits– Fruits, juices and dairy products

■Between Kitchen and Kitchen– Large hotels that operate more than one kitchen

■Interunit Transfers■Transfers of food and beverage between units in a

chain

The written Purchase Order form should contain space for the following information

Item NameSpec #, if

appropriateQuantity OrderedQuoted PriceExtension PriceTotal Price of OrderVendor Information

Purchase Order Number

Date Ordered Delivery Date Ordered by____ Received by_______ Delivery Instructions Comments

Purchase Order Information

Advantages of a Written Purchase Order

■ Written verification of quoted price.■ Written verification of quantity ordered.■ Written verification of the receipt of all goods ordered.■ Written and special instructions to the receiving clerk, as

needed.■ Written verification of conformance to product

specification.■ Written authorization to prepare vendor invoice for

payment.

© Ashish Gupta

The Beverage Requisition / Issue Process

■ Since beverages, by their nature, are very susceptible to employee theft, there are several additional concerns in transferring beverages from storage to production areas.

Establishing Bar Par Inventory Levels

■ A bar par is an established number of bottles of each type of beverage that is always kept in behind-the-bar storage areas

■ A bar par is established for each type of liquor and wine kept behind the bar

■ An important rule is that empty bottles must be presented before full bottles are issued.

Beverage Issuing Steps :

■ At the end of each shift the bartender places the bottles emptied during the shift on top of the bar.

■ The bartender completes a beverage requisition form recording the name of each type of liquor or wine emptied.

■ The beverage manager checks the number and type of empty bottles on the bar against the information on the beverage requisition form.

■ The bartender takes the empty bottles and the beverage requisition to the beverage storage area.

■ Empty bottles are broken or otherwise disposed of according to local or state laws, or as specified by the property’s control requirements designed to prevent re-use.

■ Total cost calculations and the beverage cost percent calculations at the bottom of the requisition form are normally completed by management or F & B Controls personnel.

Beverage Requisition Form  

Beverage Requisition Shift : Morning Date : 16.02.2006  Bate : Main Bartender : Edwin D’souza  

Liquor Number of Bottles Size Unit Cost Total Cost

Col. 1 Col. 2 Col. 3 Col. 4 Col. 5B.Scotch 3 750 ml Rs.1200 Rs.3600B Gin 2 750 ml Rs.200 Rs.400                           Total Bottles : _____________________ Total Cost : _____________________   Check on :OK to Issue : ___________________ Lose priceIssued by : ___________________ Reg. PriceReceived by : ___________________ High Price  (cost) / (revenue) = (beverage percent) 

Bottle Marking

■ Bottle marking identifies a bottle before it is issued. It may simply identify the bottle as house property, or it may also contain information about the bottle’s cost and / or date of issue.

■ There is more than one bar in a property bottles should additionally be marked with the site to which it is issued.

■ The bottle mark is an adhesive-backed label or hand-to-remove ink stamp, with a logo or symbol difficult to duplicate

■ Bottle marking is important for two other reasons. ■ If the cost, from the daily receiving report or delivery invoice, is recorded on the

bottle, it is easier to complete the issue requisition form.■ If the date of issue is recorded on the bottle, it is easier to keep track of the rotation

of bottles behind the bar.

The End