Inventory variance tracking

    Overview

    Who can use this feature?

    All users with point-of-sale integration

    Prossional plan (full reporting), Essential plan (limited reporting)

    The variance report in Backbar compares item sales to inventory counts so you can track theoretical inventory and prevent loss.

    Reviewing the Variance Report

    This report uses both sales data and inventory session data. You must have completed two inventory sessions for the variance report to populate. Report views are based on session dates and will include sales logged between the two session dates. 

     

    Inventory data used

    This report utlizes item usage rate to compare against sales. Usage in Backbar is calculated with the following data

     

    • Inventory counts entered during an inventory session
    • Quanties received in orders logged in Backbar
    • Inventory quantity adjustments
    • Inventory transfers

    We calculate item usage rate based on this and compare it to sales during the same time period. 

    Variance report_not expanded

    How to see variance

    Variance is the difference between the total sales and usage rate of an item. The right column of the report shows variance by

    • Item count
    • Dollar value
    • Variance percentage

    High variance is marked in red to flag when the usage rate is significantly higher than the item sales. 

    It's not uncommon for their to be slight variance, so it's important to be familiar with your acceptable range of variance.

    Variance report_expanded

     

    Common reasons for variance

     

    No orders: One of the most common reasons for variance is if you are not logging orders in Backbar. Without tracking orders, it's likely the variance report will be skewed due to negative usage rates. 

    Inventory counts: If inventory counts aren't entered properly, or inventory sessions are set to the correct close date, this can throw off your usage rate.

    Point-of-sale workflow: If your point-of-sale isn't set up properly, like missing items, for example, then sales won't be tracked properly in Backbar. Similiarly, if your the item mapping in Backbar isn't accurate, then sales will be incomlete in Backbar.

    In-house issues: Other reasons for high variance include theft, overpouring, and improper tracking by employee. 


    Still have questions or want to report an issue?

    Submit a support ticket