Using Raw Goods
Raw goods are sub-items used as components of items sold in your store. For example, if your restaurant sells a large coffee, creating and attaching the raw good “large coffee cup” and “large coffee lid” helps you track how much of that packaging you’re also selling with the coffee.
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What are Raw Goods?
Raw Goods are an additional inventory option that can be enabled in BackOffice at your discretion. They allow you to add which component inventory items are used when you sell the menu inventory item, but these are not sold directly to your customer. As the ingredients and components of your items, they work best as “paper goods” or non-consumable components like packaging that won’t expire.
Raw goods are imperfect and won’t always report 100% accurately as many factors such as spillage, waste, product comps, etc., can affect inventory levels. We recommend referring closely to your Sales Reports for an assessment of accurate Raw Good sales.
When to Use Raw Goods
Here are a few times when you should take advantage of raw goods.
- When the Raw Goods are "paper goods" or won't expire.
- When the same item is sold in several different ways.
- EXAMPLE 1: Serving wine by the bottle and by the glass or selling beer in 6 pack and 12 pack cases. If you sell wine by the glass and bottle, you’re able to track exactly how much was used. When you sell a glass, .2 of a bottle is removed, but when you sell a full bottle, 1 full bottle is removed from stock.
- EXAMPLE 2 : If you have a food truck that sells “Pulled Pork Sandwich” as a menu item and it always uses .5 lbs of pork, .5 cups of BBQ sauce, and 1 plastic container and is made to order, you can have each component item pulled from inventory as the sandwich is ordered at the register.
- When a menu item doesn’t have modifiers like size or add-ons, like latte syrup flavors.
- These variations are individual inventory items, like a small coffee, small vanilla coffee, or medium black coffee.
- When you’re selling a pre-made set, kit, or gift basket of items that are also sold individually.
- EXAMPLE : Like a gift basket made of different bags of ground coffee. Each different ground coffee bag is also sold individually according to flavors and sizes, such as Large Bag Sumatra, Medium Bag Breakfast Blend, or Small Bag French Roast.
- Vape shops and retail boutiques typically benefit from raw goods in this way.
- Menu items that are made to order with no "on the fly" modifications.
When Not to Use Raw Goods
Here are some instances that you should consider when deciding to forgo using Raw Goods.
- When tracking modifier items is important to your inventory.
- When consumed items are not tracked at the register.
- EXAMPLE : When you order a burrito and select ingredient options while walking down the line before reaching the register. The cashier doesn’t ask you all the ingredients you got in your burrito, instead just charges you based on menu item, size, and premium side add-ons, like guacamole (an individual inventory item).
- If the item may be lost, spoiled, or thrown out if not used during its lifespan.
- EXAMPLE : Chopped tomatoes prepared at the start of the day. Since these will be discarded whether used or not Raw Goods will only pull as sold, and often will be under reported.
- When you’ve calculated the exact amounts of a batch for inventory and ordering.
- EXAMPLE 1 : For bakeries and cafes, if it’s a pre-made item, like cookies, the components of the cookies like milk and eggs would have already been calculated and portioned prior to being sold, but raw goods will pull the components from inventory as the item is sold at the register.
- EXAMPLE 2 : If 2 lbs of butter, sugar, and flour were consumed when making one batch of cookies, but they don’t sell all 100 cookies produced from a batch, the inventory report will be slightly off as the system will only think the raw goods of the cookies sold is what was used when in actuality 1 batch worth of ingredients was used.
Before setting up your raw goods and inventory items, consider these suggestions.
- When creating raw goods, keep each raw good in the same unit of measure, or easily convertible, i.e. metric system (if possible).
- Set the Inventory Method for each Raw Good to "Not Tracked".
- If possible, create your Raw Goods first, then the Stock Item to avoid extra work.
- Set proper order triggers to help streamline your reporting.
Enable Raw Goods
Raw Goods aren’t enabled by default, but a quick visit to your BackOffice Settings can fix that.
- Click ‘Settings’, then, ‘Inventory’.
- Check the box and click ‘Save’ to confirm.
Add a New Raw Good
Raw Goods exist separate from your sellable inventory items. They’re created with their own tracking and management information and attach to sellable items.
- Click 'Items', then 'Raw Goods'.
- Click 'Add Raw Good' to create a new raw good.
- Enter the necessary details for the Raw Good and click 'Save'.
The description is the only required field.
Once created, attach the raw good to relevant items to begin tracking them.
Attach Raw Goods to Items
Since they can’t be sold on their own, attach a Raw Good to a regular item to begin tracking it.
- Choose ‘Items’ and select ‘Items List’.
- Choose any item available for purchase to receive the raw good.
- On the item, click the ‘Raw Goods’ tab.
- Click ‘Add a Raw Good’ to begin.
- Enter a Quantity and search to select a Raw Good.
- Click ‘OK’ to confirm the new Raw Good.
Tracking Raw Goods
Since Raw Goods aren’t like other items, you’ll use the Inventory Value Report to see the state of all your Raw Goods at a glance and use Adjust Inventory to replenish them.
Inventory Value Report
Find the inventory quantity, cost, and total value in the Inventory Value Report accessible from BackOffice. This report has information for both stock items and raw goods.
- Choose ‘Analytics’ from the sidebar and select ‘Value’ (under Inventory).
- Click ‘Raw Goods’ to see their values.
Here you can see the overall quantity and value of your Raw Goods if you’re tracking them.
Adjusting Raw Good Inventory
Adjust Inventory for Raw Goods like any other item. ShopKeep tells you how much items can be made with the quantity available.
- Click ‘Items’, then ‘Adjust Inventory’.
- Type to search for your Raw Good.
- Click the Raw Good to select it.
- Enter a number and 'Add to' or 'Replace the count'.
“Kits” represent the number of Raw Goods on hand based on the sum of the raw goods tied to items.