Ordering of Stock:
Betta Burger needs to continuously ensure that minimum stock levels are sustained in order to meet demand while not exceeding maximum stock levels preventing wastage, by comparing quantity of raw materials ordered to the number of units sold regularly.
1. Betta Burger must make use of the First-In-First-Out (FIFO) inventory costing method, as these products are perishable. This allows for the management of expiration dates and maintaining freshness to prevent loss due to stale goods.
2. Before an order is placed, a stock clerk must perform a stock take (as per the Perpetual system) in order to determine current stock levels and the urgency for new raw materials. Although the stock clerk has authorised access to…show more content… Goods are purchased on credit to improve cash flow.
6. Kitchen staff need to account for the amount of materials used. Inventory records need to be continuously updated by the stock clerk when stock movements are involved. The senior manager needs to perform daily stock taking and compare the sales figures with the amount of stock on hand, as a reconciliation process, in order to detect theft.
Receipt of Goods:
1. Upon receipt of goods, Betta Burger will receive a delivery note/supplier invoice with all the details of the stock ordered.
2. Before record keeping is performed, the stock clerk needs to inspect the goods to ensure that it meets the requirements. This includes evaluation of the quality of stock as well as comparison between the quantity delivered and the number of units ordered.
3. The senior manager will need to sign for the receipt of stock, in good condition.
4. Upon receipt of the signed supplier invoice, the book keeper is tasked with capturing the information into the electronic accounting system, whereby the raw materials account is debited and supplier account is credited while taking into account the input VAT (on invoice…show more content… As specified previously, only the stock clerk and senior manager may enter the storeroom in order to conduct an authorised stock take.
Production of Goods:
Health and safety regulations must be adhered to by staff – which includes wearing the correct equipment such as hairnets, aprons and gloves.
1. The stock clerk will receive the requirements from the kitchen staff as stipulated in the cash invoice/receipt based of the customer’s order generated by the cashier responsible.
2. If no receipt is presented, no materials may leave the storeroom. Therefore, the stock clerk is required to know what raw materials are needed to produce a specific product.
3. The oldest raw materials must be provided to kitchen staff responsible for producing the goods – this ensures freshness and prevents stale stock (FIFO).
4. Change in stock levels must be analysed and updated by the senior manager.
5. The book keeper must record the production by crediting Raw Materials and debiting Work-in-progress when the patties are being manufactured. After the finished product has been compiled, the book keeper must then credit Work-in-progress and debit Finished goods in the General