COST CONTROL

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COST CONTROL part 3 ------------------------------
- THE CONTROL PROCESS RECEIVING
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THE CONTROL PROCESS RECEIVING

• GOAL of Receiving Controls
• Verify that Quality, Quantity and Price of
  delivered items
• conform to placed orders, in all respects.
• Quality
• requires conforms to Purchasing Specifications
• Quantity Stewards Market Quotation List
• requires measuring tools
• Price Stewards Market Quotation List
• requires Purchase Order
• Over All Receiving Process
• requires recording using Forms and Stamps

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Establishing Standards for Receiving

• 1. The quantity delivered should be the same as
  the quantity listed on the stewards market
  quotation list, and this should match the
  quantity on the invoice that accompanies the
  delivery
• 2. The quality delivered should conform to the
  establishments standard purchase specification
  for that item
• 3. The prices on the invoice should match those
  circled on the stewards market quotation list

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Sample Invoice
All food delivered should come with an Invoice in
duplicate Lists all items being delivered
Should have ALL prices Receiving clerk signs
duplicate copy-original serves as a payable
bill If possible, encourage purveyor to also
include item specs/grades/size/etc.
Townsend Meats 123 Main
Street New York, New York, 10010
Buckeye Beef 22 Central Way 312-123-4567

Chicago, IL 60601
Invoice
The Steak House
March 14
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Std. Receiving Procedures for Foodservice
Establishments
(a generic template)

• 1. Verify that the quantity, quality, and price
  for each item delivered conforms exactly to the
  order placed
• 2. Acknowledge that quantity, quality, and price
  have been verified by stamping the invoice with
  the rubber invoice stamp provided for that
  purpose
• List all invoices for foods delivered on a given
  day on the receiving clerks daily report for
  that day
• Directs / stores / Sundries / Details Cost
• 4. Forward completed paperwork to proper
  personnel
• 5. Move food to appropriate storage areas

Procedure should include a Discrepancy
Handling process Delivery times should be
controlled to suit purchaser-if possible
Chef/Kit. Mgr. MUST be Knowledgeable Involved
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STANDARD RECEIVING PROCEDURE

• To Complete the Verification Procedure
• The Receiving Clerk needs the following
• a permanent copy of Standard Purchase
  Specifications
• requires Knowledgeable Inspection of both raw
  materials
• and sanitation/HACCP regulations
• appropriate measuring equipment
• hanging platform scales
• appropriate forms / stamps / bar code reader,
  etc
• important for accounting control follow-up

Qualified employees who posses the vast amount
of knowledge required are rare and therefore
costly. Likewise, training beyond counting and
weighing is a long-time investment.
Consequently, the Chef is frequently called upon
to be present when the perishables, meats
seafood, poultry and expensive purchases are
received.
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The invoice stamp provides

• 1. Verification of the date on which food was
  received
• 2. The signature of the clerk receiving the food
  who vouches for the accuracy of quantities,
  qualities, and prices
• 3. The stewards signature, indicating that the
  steward knows that the food has been delivered
• 4. The food controllers verification of the
  arithmetic accuracy of the bill
• 5. Signatory approval of the bill for payment by
  an authorized individual before a check is drawn

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STANDARD RECEIVING PROCEDURE
Listing Invoices on Receiving Clerks Daily Report

• Categories
• depends on how item is stored and issued
• DIRECTS
• issued to kitchen upon receiving
• immediately become part of food cost
• very perishable items/bought for immediate use
• Fruits/vegs/dairy/baked goods/ (standing orders)
• STORES
• not nearly as perishable
• once received - become Inventory
• issued to kitchen when requisitioned-then part
  of food cost
• Frozen items/canned items/staples/etc

Smaller operations generally do not classify into
categories. Example of a Cost/Benefit trade off
simplified receiving procedure (cheaper)
vs. Reduces control --gt isolating where cost
problems exist is difficult.
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STANDARD RECEIVING PROCEDURE
Forwarding Completed Paperwork

• gt From Receiving Clerk
• Completed as early as possible in the day
• Commonly called the Receiving Sheet
• Stamped completed with all invoices attached
• gt To Steward
• Reviews and signs invoices
• gt To Food Controller
• Records total cost of directs to the daily Food
  Cost
• Reviews dollar accuracy of each invoice
• To Accounting (accounts payable)
• Figures will be journalized (account distribution)

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STANDARD RECEIVING PROCEDURE
Receiving Clerks Report
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STANDARD RECEIVING PROCEDURE
Move to Storage all Received FB

• Much effort has expense has been expended to this
  point
• move to appropriate storage area
• prevent deterioration theft
• most most perishable /or expensive first

• Purpose for establishing receiving control
  procedures is to --gt
• Ensure what was ordered is received
• Quality / Quantity / Price
• All foodservice operations should practice these
  basic steps