Inventory Cost Planning

Posted on December 08, 2016 by

Your inventory is the lifeblood of your business, and managing it well can be the difference between success and failure.

Why It Matters

One of the key parts of managing inventory is planning costs. Of course you need to know how much stock you have on hand (raw materials, finished goods). But you also need to know how much it's worth so you can control associated costs, manage your cash flow, plan your production accordingly, and even do your taxes. So we're trying to make that easier for you to track and keep an eye on.

In Action on ReciPal

You can now view the value of your inventory in a few different places: the raw materials inventory page, the finished goods page, and the production plan page. That way you don't have to dig around for the numbers. Everything updates from the ingredient and recipe costs you set up for your recipes, so it will reflect your most recently updated costs.

For those of you with multiple users on your Inventory accounts, you can control who sees the costs and value of inventory. If a user has access to viewing production runs, they'll see cost as well (since production runs show costs already).

Food Manufacturing Inventory Value

Here's the value column on the raw materials page. You'll see the same column and information on the finished goods and production plan pages.

Production Planning

So when you're reviewing your raw materials or finished goods you'll see the value of each item that you have inventory of. And possibly more importantly, we've added the cost when doing production planning. So, if you've planned ahead for the next month of production, you'll see what you have to purchase to be able to complete production, and how much capital is required to make those purchases.

Parting Words

We hope having inventory values in multiple places makes your life easier and your business more efficient from an inventory management perspective. Let us know what you think in the comments below!

About Lev Berlin

Lev Berlin ReciPal SlantShack Author Bio

Lev Berlin is the founder & CEO of ReciPal. Having previously been a founder of SlantShack Jerky, he needed nutrition labels and simple tools to start and run the business. He's read the FDA food labeling code countless times in the process of creating ReciPal and helping small food businesses with their labels. He's reviewed and created thousands of food labels, and been a mentor and guest speaker at food incubators, food business courses, and regulatory conferences, like Brooklyn Foodworks and ICE.

After graduating from Princeton with an engineering degree, Lev was a management consultant, then founder or early employee at half a dozen startups. He loves nothing more than helping other small businesses get off the ground and achieve their goals.

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