After importing your sales data, adding your recipes, and having at least 2 completed inventories, you’ll be able to see your variance on the Variance page on the WISK Web Portal.
What is Variance?
Variance is the difference between what was sold in your POS, and what was actually consumed / used during an inventory period.
Variance is important because it allows you to identify your losses. By reducing your variances, you will reduce your beverage costs.
Your variance displays for each item as units, as well as ozs.
❗Note: Your variance can only be accurate if your sales and consumption data is accurate and complete. It is important that you are entering accurate inventory counts into WISK and add all of your deliveries. Even a single missed delivery will throw off your data.
How is Variance Calculated?
Variance = Sales - Consumption
In the image above (from the Variance Page of the WISK WEB Portal), based on our sales data and recipe mapping, we sold 32.14 bottles of Belvedere (750ml), and consumed 48.16 bottles (based on the inventory count and deliveries)
In this case, the variance is -16.02 bottles. Since it is negative value, this indicates a loss of just over 16 bottles.
The Variance Cost column then shows the dollar value of this loss at cost, which is $679.22.
The Variance Retail column is based on your sales items and mapping. This shows what the product could’ve sold for, in this case, the 16 bottles of losses amounted to a theoretical loss of $2665.78
In this case, since this is a large negative variance, we want to make sure that our consumption number is accurate. By clicking the details button on the far right, we can get more information to make sure we have entered all of our deliveries, and that the counts are accurate.
If you have a positive value for your variance, this means that you sold more product than you consumed. This could be due to an issue with your recipe mapping, or a different product was being poured than what was sold (For example, sold Smirnoff, but poured Grey Goose).
Reasons for Variances
Variance is complicated because there are many variables involved. If just one variable in the equation is off, it can misrepresent your numbers.
A variance most often occurs if you are pouring more than you are selling, but other reasons why you could see a positive or negative variance include:
- Issue with a delivery (not entered, wrong date, missing items)
- Miscounted items in either opening or closing inventory
- Missing sales data
- Incorrect recipe mapping
- Archived POS Items
- Punching the wrong Items when sold
- Duplicate bottles
For more information about Variance, please see the Variance section of the help site.