Item Examples

How is it used in recipes? - The measure that you use the item in your recipes.
Purchase Price - The cost of how the item is purchased per unit. E.G. Case, Bottle etc.
How do you report on this item? - How you track this item for inventory. E.G. Can, Kilo etc.
How many (item unit tracked at inventory) are in (purchase price). - If you purchase an item by case and you track it by the can and there are 6 cans in a case, you would enter 6.
How many (recipe units) are in a (item unit tracked at inventory) - If you use the item by ounces and there are 100 ounces per can, you would enter 100.

Example of Case with Packages

You purchase Chili Seasoning Mix by the case for $22.32. There are 25 packages of seasoning mix in each case. In recipes, you use the seasoning mix by the package.

The Chili Seasoning Mix entry would be:

Actual Cost Per is calculated based on the Recipe amount. The cost per package is $.8928 or 89.28.

If you use the seasoning mix by the ounce and there are 4 ounces per package.

By the ounce, the entry would be:

The cost per ounce is $.2232 or 22.32 cents.

Example of Canned Goods

You purchase Kidney Beans by the case for $18.50. There are 6 six cans per case. You use kidney beans by the ounce in recipes and there are 100 ounces in each can.

Kidney Bean entry would be:

The cost per ounce of Kidney Beans is $.0308 or 3.08 cents.

Example of Packaged Paper Cups

You purchase 10oz Coffee Cups by the case for 21.11. There are 20 tubes in a case. You use the cups by the each and there are 50 each in a tube.

Coffee Cup entry would be:

The cost per cup (each) is $.0211 or 2.11 cents.

Example of Bulk Items in a Case

You buy napkins by the case for $82.00. At inventory time, you count the napkins by the package. There are 18 packages per case. The napkins are used individually and there are 300 napkins per package.

Napkin entry would be:

The cost per napkin (each) is $.0152 or 1.5 cents.

Example of Items Purchased by Weight and Used Individually

You purchase chicken wings by the case for 52.49. At inventory time, you count the wings by the kilogram. You use wings in recipes by the each. Because wing sizes vary, you need to measure out a kilogram of wings and count how many wings you get out of a kilogram. Repeat this until you get an average count. This amount can range from 18 to 22. In this example we averaged the chicken wings to 20 per kilogram.

Chicken Wing entry would be:

The cost per wings would be .2625 or 26.2 cents.

Example of Individual Item Purchase

Any item that is purchased and sold in the same unit size can be setup in following way.
Milk is purchased by the carton from the local dairy. The price per carton is $0.39 for each 1 pint (250 ml) carton. The milk is also sold by the carton.

Milk entry would be:

Remember to look at How do you report on this item? unit of measure. Be sure it is configured to how you count that inventory item by.