Recording and verifying transactions Processing transactions Reporting information as required by managers of departments or functional areas. Described below is the way in which catering objectives and requirements are integrated into each of these three functions, with recording and processing considered together. Recording and processing revenue and costs The financial control system must feature appropriate controls to ensure that transactions that affect revenue and costs from catering operations are recorded accurately, reliably and in a timely manner. This is achieved in the following ways. POS systems POS terminals should be in place in food service operations that are interfaced or integrated with other computer systems in the establishment. For example, when sales are recorded for a meal period, inventory is updated with the products used alerting kitchen staff that orders may need to be made. Also, staff responsible for banking the cash received can access independent verification of the amount that should be received from the terminal As sales are recorded, sales histories are updated providing quick and easy access to utilise this information Information from POS terminals also provides menu forecasting information that contributes to controlling costs. Separation of duties Duties are separated in recording transactions to minimise the risk of fraud or theft and offer independent verification of the accuracy and authenticity of transactions. The financial control system integrates the requirements of catering operations as follows:
Current popularity indices for menu items Agreements with current suppliers for price, quantity and delivery terms Reporting requirements including classification of costs, report formats for internal use and to meet external obligations and reporting periods All budgets prepared for the catering operation such as: Catering department budget Payroll budget Events budget Purchases budget Staff needs and rostering documents Repairs and maintenance schedules for kitchen operations Amount and of current inventory on hand Employee records detailing pay conditions and other information such as when and if meal allowances are given All standard forms and documents that were agreed in the systems design and implementation phases of development. financial data You should always be aware of any other financial data that is relevant to your workplace and ensure that this information is entered into the established financial control system. It is important to remember that processing and reporting capabilities of computer systems are dependent upon the information that is entered. They cannot report or be programmed to provide data that does not exist in the system. 1.5 Financial data revisited
Report Frequency Data that is reported Profit and loss statement Daily, Weekly Monthly, Annually Total revenue and total costs for the entire establishment Also prepared for each department Balance sheet Monthly, Annually Assets, liabilities and owner’s equity Statement of cash flows Daily, Weekly Monthly, Annually Cash inflows, cash outflows, available funds Cash budget Daily, Weekly Monthly for future cash inflows and outflows Bank reconciliation statement Monthly (or Cash balance in the bank account and the ledger account Payroll cost report Daily Labour cost by department Food cost report Beverage cost report Daily Food and beverage costs for catering operations Room cost report Daily Summarises all costs associated with preparing rooms for guests Other operating cost summaries Daily, Monthly Details any other operating costs management wish to monitor from all departments Purchase reports Daily Summarises the supplies ordered by department Goods received reports Weekly Records the stock received for the period of time required Wastage report Daily, Weekly Lists stock that could not be resold to customers