At the end of a busy day revenue can look high, but revenue is not your profit. To see which product really earns you money, you need recipes and cost.
What is a recipe?
A recipe is the written form of how much of which ingredient a product uses. For example, for a latte: milk, coffee and a cup.
A worked example
The figures below are only an example; calculate with your own purchase prices.
- Milk: 200 ml × ₺0.03 = ₺6.00
- Coffee: 18 g × ₺0.40 = ₺7.20
- Cup and lid: ₺2.50
- Total cost: ₺15.70
- Selling price: ₺95 → gross profit ₺79.30
The difference between gross and net profit
Gross profit is found by subtracting the cost of goods sold from the sales amount. Net profit is what remains of gross profit after expenses and items such as waste are deducted.
- Revenue − cost of goods sold = gross profit
- Gross profit − expenses − waste/write-offs = net profit
Keeping the cost current
As ingredient prices change, so does the cost. Enter current purchase prices; keep supplier orders and deliveries on record. Otherwise the cost you calculate won't reflect reality.
Don't forget waste
Spilled, spoiled or complimentary products are cost too. Recording waste is a precondition for seeing profitability and stock correctly.
In Adisyon Merkezi, the Recipe & Cost app takes a sold product's ingredients off stock and shows gross and net profit in the reports.