Reference
Glossary
The key terms around inventory management and cost control in hospitality - briefly explained.
- FIFO valuation
- First in, first out: goods receipts are stored as cost layers with quantity and purchase price. Usage and sales consume the oldest layers first, so stock value reflects actual purchase prices rather than an average.
- Learn more: Stock management →
- Reorder point
- The stock level at which an item should be reordered. When on-hand stock drops below it, BevoraX creates a draft order for the preferred supplier.
- Learn more: Purchasing →
- Recipe explosion
- Breaking a sold item down into its ingredients - including sub-recipes such as syrup or sauce. This is what lets a sale move the stock of each individual ingredient.
- Learn more: Recipe costing →
- Gross margin
- Revenue minus cost of goods, as a percentage of revenue. Shows how much is left after product cost - per line, menu section or period.
- Learn more: Recipe costing →
- Cost layer
- A single goods receipt with quantity and purchase price. An item's stock is made up of several layers; FIFO valuation consumes them in receipt order.
- Learn more: Stock management →
- Cost of goods
- The product value of items sold or consumed in a period. In BevoraX it comes from the consumed cost layers, not an estimate.
- Learn more: Recipe costing →
- Goods receipt
- Recording a delivery against an order. Posting raises stock, creates cost layers and advances the order status - partially or fully received.
- Learn more: Delivery note scanning →
- Inventory count
- Recording actual stock per location. BevoraX compares target and actual and posts the difference as a traceable correction.
- Learn more: Stock counts →