The Ingredient Method of Accounting (IMOA) stands for the method which is used only for the following Product Categories:
- Chicken
- Deli
- Food Service
- Fresh Baked Pizza
- Convection Oven Products
- Fountain Drink - Cold
- Hot Drinks
- FCB
Under this method merchandise additions are made at cost value and no retail value. They will not be extended to a retail value as are other store products. Retail value is added to the retail book inventory via a price change after the item is sold. The retail value will be determined by the related department sales found on the closing register tape.
In the sections below, you will learn how to set up IMOA categories, departments, items, parent-child relationship between IMOA items and also how to calculate GPM.
Before You Start
Before you start using the ingredient method of accounting, learn the following notes and assumptions:
- Each flavor or variation has its own parent-child relationship setup.
- Each coffee flavor and fountain drink flavor is being rung up as a separate PLU.
- Cashier is dispensing the drinks.
- Variable ingredients are not being counted.
- You must maintenance your recipes if they change.
- An item can only have one unit in case. Inventory will always be slightly off if you sell sizes that are not exact multiple of the lowest size.
Example
8 oz, 12 oz, 16 oz - selling 12 oz will throw off your inventory slightly.
