Reduction Cases and Inventory Consumption Priority Algorithm with POS

Reduction Cases and Inventory Consumption Priority Algorithm with POS

There are 5 cases or 5 types of configurations in which Novohit performs a reduction of the warehouse. Each case has a particularity according to its configuration and Novohit will apply an algorithm to decide which case is the closest to the inventory reality.

Roughly speaking, the order in which the cases are listed below are the algorithm or sequence of warehouse selection that the system will do for the inventory reduction when a POS sale is made. These steps in the sequence are mutually exclusive, i.e., if one applies, the others do not apply.

The system will always look for the catalog where the inventory product is configured (depending on the case). If the reduction configuration is correct (and based on operational reality), the highest priority will be given to the inventory (warehouse) associated to the recipe, the lowest priority will be given to the POS catalog.

If the system detects that a product does not exist in the inventory where it was configured for the reduction, then it will create it by copying the values from the inventory where it is actually located.  

Case 1: Warehouse Associated to the Product in the POS Product Catalog

It is possible to associate a POS product to an Inventory product for direct reduction. Go to Configurations → POS Configurations → Point of Sales Product Catalog → Select the product in question and in the Inventory Product Code field select the inventory product that you want the system to reduce with the sale.

You must indicate the Quantity to reduce from Inventory in the unit of the inventory product.

Inventory Product Code: Inventory product
Quantity to Reduce from Inventory: Quantity in the unit of the inventory product (see Inventory management Configuration manual).

This is the only way to associate a specific POS product to an inventory product. 

Case 2: Warehouse Associated to the POS Area Where the Product Was Sold (Only for Warehouse Product Catalog)

Only for Warehouse Product Catalog. 

In the case of POS with tables (restaurant) or department areas (retail), this option allows you to configure so that you can reduce from different warehouses according to the physical area where the POS products are sold (lounge, discotheque, bar, or departments within the retail). This allows to have a granular control of a single point of sale with different areas, so you do not have to open a new POS to handle reductions from each inventory.

Requirements

  1. POS configured by Tables/Area
  2. Inventory warehouse

Configurations

This configuration is performed by our staff and is subject to verification of POS licensing terms. Please submit a ticket for further assistance.

Case 3: Warehouse Associated to the Point of Sale

This is the simplest case and usually complements case 1. You can associate some specific products in step 1, but most of them will be inventory products, this is the option to choose.

This configuration is done by our staff and is available for all clients with POS and Inventory modules. If you wish to activate this case, please request configuration assistance via ticket. 

Case 4: Warehouse Associated to the Recipe

This option allows you to deduct the components of a recipe from the inventory.

Requirements

  1. License to use the Recipe Costing Module
  2. Recipe Configuration. See: Register Cost Formula.
Field Applies Recipe Cost active on the product in the POS Product Catalog. This is required for the product to appear in the Food and Beverage Dish → Recipe Costing → Record Formula for Costing field.

Configuration

Configurations → POS Configurations → Point of Sales Product Catalog → Select the product in question and in the field Apply Recipe Costing.

Ask our staff via ticket to perform the corresponding activations before starting to use this functionality.

Concept of Portions

Novohit allows you to create recipes based on portions, take a few minutes to understand the portions functionality and the formulas that the system applies in this link:

Case 5: Warehouse Associated to Packages

This option allows you to reduce from the inventory the components of a recipe, but for the case of packages. See Define Packages - Combos - Kits

Ask our staff via ticket to perform the corresponding activations before starting to use this functionality.

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