Turnkey Retail Management Solution Mini Manual Bill of Material Products

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Turnkey Retail Management Solution

Mini Manual Bill of Material Products

Retail Version 5.3.x.x

Document Version 1.0 Last Updated: December 2011

Produced by:

Turnkey Information Systems cc

South Africa

Web:

http://www.turnkey-is.co.za

E-Mail:

info@turnkey-is.co.za

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OBJECTIVE

The objective of this manual is to introduce you to Bill of Material products, and how to set these up in Turnkey Retail.

INTRODUCTION

One of the types of products you may make use of in Turnkey Retail is a Bill of Material item. We do not support multi-level Bill of Materials as in production systems, but we do support single level Bill of Material products.

A Bill of Material product is a product that is constructed from various other Non-Serialised products already listed in your stock master.

The two typical examples that will be discussed are one form the DIY hardware industry and one from the fast food / restaurant business.

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DIY HARDWARE EXAMPLE – 2 BURNER GAS STOVE

When adding a Bill of Material product you need to ensure that all the items that will be used in the manufacturing of the Bill of Material product, is already listed in your stock master.

On the Add Stock Item screen, you will complete all the necessary fields and then indicate to the system that the item is of type Bill of Material, as in the screen shown below:

You will notice that once you have selected the stock item type to be Bill of Material, a new button will be presented, which is called “Setup Bill of Material”.

You need to click this button to complete the setup of the item.

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Section B is used to add the different items to the Bill of Material. If you know the code, you may type it in, or alternatively you can search for the item you want to add by clicking on the “Lookup” button, and then searching for the item.

Section C presents to you what is already added to the Bill of Material. Double clicking on one of the items you have already added will move it back to section B, where you may make edits to the item. If you accidentally added an item, you can right click on the selected item in section C, and choose to delete the item.

Once you have constructed you Bill of Material, you may want to click on the “Print” button, to get a printout of the Bill of Material item.

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Turnkey Information Systems cc – Copyright © Page 6 of 12 The more accurate you can be with the contents of your Bill of Material, the more accurate you cost of sales will be. Turnkey Retail will calculate the cost of the item, based on the quantities of the items that forming part of the bill of material.

When you have saved the Bill of Material product setup, you will have to set the retail price of your product. You will not be able to set the Cost Price, as this will be calculated by the system, based on the Cost price of the individual items making up this Bill of Material product.

Save the product once you have completed setting it up. When you sell the item on the front office, all the individual items will be reduced in quantity based on the setup of the product.

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RESTAURANT EXAMPLE: CHEESE BURGER

In the restaurant environment where you make use of a kitchen printer, you need to setup your products that will be printed to your kitchen as Bill of Material products.

In our example we setup a Cheese Burger. The initial screen looks as follows, and this setup is created once all your ingredients have been added to the system already.

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Turnkey Information Systems cc – Copyright © Page 8 of 12 Please note that when you add fractions of an item, as in the tomatoes and onions above, you need to indicate the fraction of the original product. In both these cases we have setup the original products to be of a unit of 1, representing 1kg of the item. This will assist you in the proper costing of the Bill of Material product.

In our example, we are using 50 grams of onions and 50 grams of tomatoes. This is represented by using 0.05 of the whole which is 1000 grams or then 1 kg.

Printing the Bill of Material for this item will look like the following report:

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Turnkey Information Systems cc – Copyright © Page 9 of 12 It is important to note that when you are making use of ingredients that is allowed to be used in fraction of the original ingredient, it needs to be setup as such. An example is displayed below (using onions):

You will notice that the Onion is setup to allow Fractional Selling, which means a part of the whole can be sold. Also a fraction name is given to make it easier for system users to understand the context of this item.

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RE-CALCULATION OF BILL OF MATERIAL COST PRICES

Over time the cost price of the ingredients/components of your Bill of Material products will change, so it is good practice to run the option as indicated below on a regular basis, and make sure that you are still maintaining the required margin on your products.

As an example, if your onion price has increased:

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Turnkey Information Systems cc – Copyright © Page 11 of 12 Looking at the pricing tab of the Cheese Burger you will now notice that you are only realizing a 74.88% markup, whereas before the price increase you were realizing a 76.28% markup.

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COPYRIGHT

This document is the proprietary and exclusive property of Turnkey Information Systems cc except as otherwise indicated. No part of this document, in whole or in part, may be reproduced, stored, transmitted, or used for design purposes without the prior written permission of Turnkey Information Systems cc.

The information contained in this document is subject to change without notice.

The information in this document is for information purposes only. Turnkey Information Systems cc disclaims all warranties, express or limited, including, but not limited, to the implied warranties of merchantability and fitness for a particular purpose, except as provided for in a separate software license agreement.

Turnkey Retail Management Solution Mini Manual Bill of Material Products