In this document, we will try to cover everything we can about variance to make it as easy as possible for everyone to understand.
The Definition of Variance:
noun: variance; plural noun: variances
- the fact or quality of being different, divergent, or inconsistent.
"her light tone was at variance with her sudden trembling"
synonyms: difference, variation, discrepancy, dissimilarity, disagreement, conflict, divergence, deviation, contrast, contradiction, imbalance, incongruity More"the variance between the two groups is slight"inconsistent, at odds, not in keeping, out of keeping, out of line, out of step, in conflict, in disagreement"his recollections were at variance with documentary evidence"
- the state or fact of disagreeing or quarreling.
"they were at variance with all their previous allies"
synonyms: conflicting, in conflict, in disagreement, in opposition; More
a discrepancy between two statements or documents.
an official dispensation from a rule or regulation, typically a building regulation.
a quantity equal to the square of the standard deviation.
The stock variance report works by comparing the actual stock usage between two dates -as recorded by the user- against theoretical stock usage as calculated from recipes of items sold at that time.
Next is Variance. This column shows the difference between the Actual and Theoretical figures. This is the most important column in the report! Ideally, the variance should be as low a figure as possible. Any stock that is in variance is considered unaccounted for.
Addressing your variance is important to keeping your stock under control. Generally, there will be several reasons for stock to be invariance:
Errors in recording Stock Movement
If the user has made a mistake when recording in Backoffice, these mistakes will reflect in one or more of the first four columns, and as a result, show an incorrect Actual Stock usage figure.
If a menu item’s recipe is incorrect, it will not deduct the correct amount of stock when a sale is made. Please contact the Helpdesk if you suspect there is a menu problem.
A physical problem with Stock Control
The primary purpose of the variance report is to identify and correct any misuse of stock in the store. As a result, it’s often the case that a variance is caused by stock actually going missing, due to errors or theft.