Variance is calculated using simple math:
Expected count −
Actual count =
If your variance appears inaccurate, it is a result of an error in either the expected or actual counts.
Expected count is calculated using the following algorithm:
Beginning count +
- Beginning count: the total quantity counted in the previous audit. Products that are skipped will have their previous counts carried over continuously until they are counted again.
- Purchased: the total quantity from orders that were reconciled between audits. It is important to reconcile or quick receive all open orders before ending the audit.
- Sold: the total quantity estimated to be used based on POS sales. Unverified recipes will not be tracked and will result in lower estimated sales.
Actual count is the quantity that you physically counted when performing your audit. Actual counts may become inaccurate if products are skipped in all or some of the areas the product is kept in. For example, if a product is kept in the Main Bar and the Storeroom, it needs to be counted in both areas for the actual count to be complete and accurate.