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Updated on 11/23/2018
Direct link to topic in this publication:
iikoOffice 6.2
Price Dynamics

Use the purchase price dynamics analysis to learn whether prices go up or down, and how this affects your markup. To have a better understanding of the price change situation, the report also provides for the sales volume split by goods, as well as their share in the cost of sales.

Use the report to make proper decisions: change a supplier, raise prices or amend recipes. For comparison, the report provides the data for two periods:

Reference period - period used as a comparison reference point. It must be before the survey period.

Survey period - purchase prices of this period are compared with the reference period prices. For instance, this might be two adjacent weeks: current and previous.

To run the report, follow this:

  1. Go to Reports > Price dynamics.
  2. Specify Periods of comparison:
    • Default periods. A current or past week, month, quarter or year may be the survey period. The reference period is defined automatically by the system and depends on the survey period. If you pick the current week as a survey period, it will be compared with the previous one. If you select the past month - February, it will be compared with January.

  • User-defined periods shall be specified manually. They must not overlap, and the survey period shall go after the reference period.

  1. Not all the goods can be analyzed. To select the goods, use the following methods:
    • Product groups. Select stock list groups of products.
    • Assess goods that incur more than X% of sales cost. The table will show only the key products, the ones that take a significant share in costs.
    • Assess goods at increased prices. The table will show only those goods which survey prices are higher than reference prices.
  2. Specify the Source of current and lowest prices and a period for these documents:
    • Price lists. Prices are imported from supplier price lists the validity of which is within the specified period.
    • Purchase invoices. If you do not maintain supplier price lists, purchase invoices registered in iiko may be such a source. The lowest prices will be selected from the documents.
    • Price lists and purchase invoices. The lowest prices are selected from both price lists and purchase invoices.
  3. Click Update.

The table provides the following indicators:

  • Ingredient consumption ‒ product volume written off in the survey period and the way it changed as compared with the previous period. 
  • Average purchase price ‒ weighted average purchase price of product within reference and survey periods, as well as its Change in currency units and %.
  • Loss or profit due to average price change ‒ how your purchase costs changed due to the increase in product prices in the survey period. Green is for the profit (saving), red ‒ loss. It is calculated according to the following formula:
    (Average purchase price in reference period - Average purchase price in survey period) * volume of sales in survey period
    If the value is positive, it is given with a minus sign and is considered a loss, a negative value is given without a minus and is a profit.
  • Current purchase price ‒ product price according to the most recent purchase in currency units, and:
    • Change ‒ how much the current purchase price differs from the weighted average price in the reference period.
    • Difference from lowest price ‒ how much the current price differs from the lowest price in the source (price list or purchase invoice) percentagewise.
  • Expected loss or saving ‒ forecast for profit or loss in the next period due to the price change. The most recent purchase price is compared with the price in the reference period. 
    (Average purchase price in survey period - Most recent purchase price) * volume of sales in survey period 
    If the value is positive, it is given with a minus sign and is considered a loss, a negative value is given without a minus and is a profit.
  • Recommendations. Based on the change in indicators, the system may suggest the following:
    • Change a Supplier if the current purchase price exceeds the lowest price, and there is a supplier that offers a better price. The system would propose a better supplier in the pop-up tip.
    • Increase a Markup on items or change a recipe if the current purchase price increased for at least 10% or the markup reduced for at least 10%.
    • Pay attention to the Expected loss in the next period due to the current purchase price rise. The recommendation is given if you specify how much you loose percentagewise due to the price rise. 
  • Part of meal - the number of items (meals) in which this product is used as an ingredient.

To learn which meals a product enters into, select it (or them) and go to the Part of meal tab at the bottom of the window. Suppose the system suggests that you change a markup, and you need to view the list of products. The table provides the following information:

  • Product - name of the selected product.
  • Group - item’s stock list group.
  • Name - item name.
  • Sales volume - sales amount per item for the survey period.
  • Revenue - revenue per item for the survey period. 
  • Markup - weighted average markup per item for the survey period.
  • Product share in cost - a share of product in the cost of an item for the survey period.

To run an in-depth analysis of items and define their value in the menu, click Proceed to ABC analysis of selected product groups. An ABC/XYZ analysis window opens up where you’ll see stock list group items as specified in the part of meal table and the periods will combine.

To learn what other suppliers have to offer, select goods and go to the Lowest prices tab. The table shows the lowest product prices, suppliers that offer such prices, the validity of such prices, and their source. If purchase invoices serve as a source, the lowest price is taken from the most recent document.