How to Handle Waste/Spillage/Breakage/Shrinkage on Products

Many courses often suffer from waste/spillage/shrinkage on F&B items. An employee might drop a can of beer and have it explode, candy bars might get soaking wet on the beverage cart and have to be thrown out, or any other combination we've all come across. So what is the best practice for correcting inventory counts in those instances?


Let's try to keep it very simple. The easiest thing to do is to keep a Waste Sheet where employees mark down the waste items and reasons for them.

At the end of the month (or any cycle) when you count inventory, since these products were not inventoried yet inventory was taken out and variances are affected, Accounting could adjust the "Waste Sheet" inventory value out of the ending inventory and expense it as a cost outside of the F&B COGS calculation.


Hence, accidents are not part of the Kitchen / Bar COGS calculation. It is adjusted out as part of keeping a good P&L.



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