that eosts are neither more nor The ohjeet n! nod cost control is i ensure Detnton Fv we Plated el Fondd Beveinye Com ¢@ developed it is n: bate hase: Belore a sysiem of F&B Control is Tak are ach Sai icofiype of customer, pe aFbuying, type and quali oFservice, degree of comfort, dec. Phase = [1 — Operations} Conizol: Having defined the po! then necessary to outline how they are to be used in day to chy control uctvites ofthe cat lishment, Singes in control Purchasin + Product tein eddie © Purchase spect Resfons + Methods of bs «Geta proces Receiving: This il + Quantity inspec KO * Quality inspec ete + Clerical proces) | Storage: This include + Stock ecords Stock taking+ Clerical procedures pvuing: Tn includes + Requisition + Pricing the requisitions production: This incl ‘© Volume forecasting + Standard portion conteo, standard recipes + Pre-costing + Clerical procedures ‘goes: This includes — + Checking system + Cash control ase TIE CO Manaement control phase: Miss the Stage when management analysis the whole operation, eomnpares the cost and sales and {kes corrective action so as to attain the objectives oF the establishment decided at the planning ene of Faccld Bevenaye eee ete Stare @ i thei ‘expentés of food and beverage Sales analysis o tbe an heveruge dems by analy: Food and beverage sales ¥, The sles mix ¥ Average spending power (ASP) Y Nuinber ofeustomers served > Cost analysis of food and heverage items ¥ Cafeultionof food and beverage costs ¥ Portion control % lator east > Calculation of gross pit > Calculation of net Profit e + To establish standard operation procedure (SOPs) for the operation : “xing menu prices and quotation of special. functions a "To preven asap of aw mater fie, oor ete sention offaud ty staf and enslomers aration and submission afmanagement report and information and corrective and men¥ P&B Contol parehasing Control: Purchasing sa netion coneermed wi the sere selection and actual terete ofa commodity accordance wih ne cteng pale fhe ood and beverage pha on. Inbreeleive purchasing ito purchase he ie ting atte it ine ‘an from aie Hiiorbortonce of Parthotivg fonetion sume perchaing poly: TN primary cbjectve of purchasing poly 0 Oba he ES ms of Pesca th need, elon iowa el bed Oe ath uy ofc a Terie purchasing poy would dln he nos SD SYS Se FSF pple Yoh of purus a niaod Of payment, defiring standard purchase om SS peor wih wou aia esl in mos econ pat material without SSATP ON AIRY, GUAT OTe ime at which materi son Description of Puretae Manager Perm ys Jose} Raychade Mauangese ‘Job Description Hotel XYZ. Name ofthe post: Purchase Manager Reporting to: General Manager Eabenising: Puchase officer, Store keeper, Receiving elt ‘Duties and Responsiiliies ss Mfanagerent of the purchase office, receiving, storage and cellar areas, Purchase of ll required commodities. ‘Conduet market surveys. Purchase specifications, requisitions and purchase orders Inviting quotation. ‘Sample testing. Knowledge of lead time for supply of goods. Ensuring continuity of supply of al tems to user departments. Selection of supplies. ‘Purchase of imported goods, Research into products, markets price tends etc. ‘Co-ordination with kitchen, [Lisson with accounts, production, control and marketing department. Petty cash for spot purchases. Formation of po chase committee reporting to senior management, acai eam “Types of food purchased: ‘Allie fod items purchased can be classified in various ways: Natural = Vegetable, milk ete + Processed ~ Milk powwler, Processed cheese elePan Oo fod prchaw ina hotel may aso be cassie es follwing reas of maintenance of records Fei etectign of SPE: itor milk produets Cereals and pulses ‘Meat products Herbs and spices 2 Vegetable and suits ‘quatty Purchasing i a Quali Pg ith fod materia it sd to define the tem Gy since its meaning difers Wher espn person. To help in qualiy purchasing tis viable to determine the factors srrming the acceptable quality for quality purchasing. lity Purchasing Nuno Value — ¥ Number Proteins Volume Tats Weight Carbohydrates Roughage ‘Water Vitamins & Minerals yen food or beverage item satss the above requirement forms the qliy purchasing. esas © a i * © Details about the firm and reputation. Information of other customers oftheir products. Recent pric lists. ‘Trade terms and onditins including discounts ‘Semple of products for standardizing quality ofthe produ Visio the firm Minimum order eve Delivery procedure. Ge One procedure Mr cI Be pple are put on an approved “Supplier's lis’ Periodically the performance is on ad based on Price performance, Quality performance and Delivery performance 2 Dseoinnon of sabe pucasng ntl: ewan purchasing methods. Re of cation and availablity of merchandise, however some of the methods astied in most of the fod and beverage establishments are described below — w Purchasing Methods See poesia (Qpen market purchasing Specific Period Contract ‘Cash and Carry Method Quanity Contact Paid Reserve Method g ‘Cost Plus Method ? Total Supply Method “1 )Bsechasing by contrac: (A contracts entered witha supplies fr 1 ‘commodities to be supplied at aa Pe usually at advantageous pice, A conract is legal document an the conivons crane contact should be carefully prepared preferably by the solicitors of the form. There are wo ‘common types of contracts =) 2 ape peril canct: ims at termining the sou of soppy and ie re Pree end period sy tec or six months. This ype of contac i suitable of of goods for td et cerca read, ter, mil, cam ‘contract: Its aim is to secure continuity of supply ofa given quantity of an TEA item at an agreed price over a particular trading periog. This type of contract is mest suitable for fruits, . ‘Clauses of a purchase contract= ‘The period Estimated quantities Reservation of the establishment to decide a contract between suppliers. specification Removal of rejected food by supplier Container chargeable Ren 48s2 FRB Control ¥ Payment of invoices ¥. Service sf atic to break a contract, eel mucin: Te reyiemens of esa iahmert are proial exited ns regular Perinic faced on 8 weekly frnihily / monthly bai. This method ensures that stocks ae ee a rgular level Amster quotation lists prepared and on the basis of periodic being St, the price quoted andthe storage space valle, the orders are placed. This fom of BNNs ts mostly wed for grocery ype commodities, ‘Buy marke ist is prepared for purchasing ferishable goods ona daily bass. tis of aoproved spl prepared. The executive chef, on the basi of exiting soc, prepares adil rest Om eecepl ofthe Dily Market List he purchase office contacts on telephone, each imaiyedsuplits and ask o quote price foreach a he tm required. The quoted prices are server onthe dally market list and the purchase officer takes a decision as to where to place the forder of ech item, (open maretpurchasng: Te esiremens ofthe exablshnent ae eit, Quoaon ae oa rc rou supplies of commodities. Th qn and price age compared and orders aan rot the frm keeping in ind the price and quant of proviso’) Beak and Cary method This iste ox suitable mehod fr smal and medium sed car ae ‘Pas ina eorplcceedom for purchasing form the market at competi sata bayer can persontly check the qual and ste ofthe ten. However the ere a pay ca or al tems purchased and Bas provide his own staff and transport focolect the ems ft the place of purchase) Paid Resse Method Ths method fs sed wen its necessary to ensure the quant of supply ofan item forthe mens Whigh is oF pascal importance for a specialty xestaurant | ee Taoa uch jumbo iz prawns, crabs ete)To be on the sft the ester buysin Saree arge quant ofthese Tem fo verte needs for future months, and requisition His weekly requirements form the suppliers. The supplier holds the stocks. ven Plus method ~Tssthod ismaresiable for wel ating institions sch ae al, boatinghoses ec. The approved soplie ipa exactly the sume pris that he ron foe commodities ue agreed percenogeto include the costo andling, delivery charges-and-amargin of pra) eee Ree some spl vo able fe Spay sie ‘af all commodities, A food and beverage establishment may agree for such su nd upper. This ‘gystem has the advantage of nl ng NERS WI oe Tie, arsed volane of paper work and ever dives) Placement of orders: Purchase order is an important document tobe issued fr all items ordered ‘This should be prepared listing allem ordered, delivery time, terms of payment, agreed price and ‘other terms and conditions. Osginal copy of purchase orders given tothe supplier. Copies of purchase order are eiculated in accounts, purchase and receiving departments.FAB Control Hotel XYZ aaa Purchase er Pi On all eomespondence please quote; P.O, Nunber,_ ei Date] Order Number] Account Number To: Gipplers Nome & Dalnes Bae Address) es Description | P Un Total Cost ‘Terms of payment Purchase Manager: Chief Accountant pase ourrons yy PPO Hotel XYZ ‘Terms and Conditions of Purchase, Nee eee SS “Hotel XYZ agrees to purchase the goods mentioned herein on the following terms and | conditions: || + Acceptance ornon-scceptance ofthis order must be intimated in writing fo the Purchase Manager, Hotel XYZ, within three days of receipt «Any remarks, notes orinstrctions inserted inthis ode shal constitute an integral part ofthis order +The gods supplied shal be equal in every respect to smples sabia or ‘standard specifications given o you in consideration of which this order is placed. + In all cases the goods shall be clean, fresh stock, fiee ftom fault or blemish. Labels ‘on all containers shal be bright and intact and it case of tinned goods, the tins imust be fre from rust, bulges and dents. “purchase contract, “Option of cancellation of this order rests with the hotel, ifthe supplies do not come or deliveries are not completed within the time ypany each supply made by you as per ration Act (if applicable)F&B Control In the eventuality of purchase order not being made in time, telephonic information must be sent to receiving department flowed by their eopy. The order on telephone is placed by the purchasing anager, which is recorded on the Telephone Transmital Slip (TTS) and purchase order. First Wl copy of TTS goes to accounts dept. and second copy to receiving dept. from whee it goes to 7 feeounts dept. along withthe bill Hotel XYZ. Telephone Transmittal Slip ‘Vendors name & address: ‘Number__ RefNo Date: Quantity Date of Delivery: Procedure for selection of a suppli Initiation of purchase indent / requisition ‘Does the F&B outlet requires these items frequently? No. ¥ Inquire about anew supp! Obtain details and quotations ‘Selection of lst of approved suppli Select a supplierce ue & § Re-Order Quant sononie oder quan or 509) (Recreate uy fr wih or ped ven ack mats ove F also Known as economic order quantity as itis the size of order that gives maximum economy in purchasing any material and ultimately contibutes towards maintaining the mat ‘optimum level and the minimum cost. While deciding economic order quantity two types of costs | \ , factors involved, itis quite difficulty to quantify this eost. Itmainly includes the cost of k sationary,slaries of tose engaged in receiving ad inspston saa of those engaged \ in placing orders.ctc._ ~ amd t i + The incidence of insurance cost oy Economic Order Quantity, | \ om o| | : Tatal Cost Nek a Camying CostFRB Control yy Centralized Purchasing System BD Gere ssstem ery popularin chain operations. In this system the requirements of each individt 4 I ee velayed toa central office, The central oic determines total requirements of all unis Ui orks total purchases eter for delivery othe individual units by the dealer ot fr central aaet any The (op management takes the decision for centralized purchasing)The main venta F ffeentral purchasing are ~ Fume purchasing which leads to lower price, higher trade discounts et. | % Specialized and expert purchasing tf ean be concentrated in one department I Y Purchases as per specifications Maintaining larger inventories which ensures constant supply toi individual nits % Check and control over individual units food purchases. ‘There are some disadvantages ofthis system: % Each unit must accept the standard items in stock. Units have little freedom to purchase for its own particular needs, Units cannot take advantage of local specials at reduced prices, 2 “ ¥ Not suitable for branches located at different pl Y The creation and maintenance ofa special puch ‘administration casts, which small concems may not laces which are far apart. hasing department leads to higher bein a position to afford 5) Standing Order Purdbas ‘ (Under efficent food ps-conroling stem there i no plac for tanding odes of ay em 0 ihe sine time not all perishable need tobe ordered agnnst market quotation and purchase overs as items such as milk, ice-ream, cll and bre: ‘After taking into consideration ofthe forecasted number ofc records, milk, cream However, itis most i ‘heekina the bills. et Youn io Eee, vad can be ordered without securing a quotation first ‘overs and previous consumption Sd bakery products must be ordered daily ona forecasted need basis.) important ae thatthe latest prices of thes items are available to the persom Sanding Purchase Order Date: Phone ‘ ' Delivery Instructions: Dated Be see Unit Rate ‘Your's faintly, Purchase Managerpew Control at ef Gevievig ie — ‘Alms of receiving: Eicien operation of rece can ple and ofits he pa ee ee linkin nd ications, negotiating price and trading terms with Ge supplier's ee Pesciving clerk must make sure that: eases All deliveries ving Contr ich the quantity ordered. All goods should be of the required quali pilasss the required quality as specified in standard purchase Goods received should be delves T Genes Id be delivered as per the delivery schedule and not delayed in Maintain proper records fal ecrved of al rceved ems and sen them to nde departments or store/cellar as required. eee Check vastngs ea pllfrge aimain proper documentation tfc eal ont lial payments ally retvng ep, Dalvry note invoice Cat sen Gonieroeivesteokeiss ted) ‘Job description of receiving clerk: ‘Reporting to: Purchase Manager sib ‘Management of the receiving ares Receiving of ll ordered commodities as per specified time table (Check the received items for tequired quality as specified inthe standard purchase specifications. Weigh or count each commodity against the quantity ordere. Date & price perishables oh the container with wax or tag them e.g. meat = Tease of request for ered where the weight or count i ess hen invoices ferior quality necessitates e return of merchandl tention ofthe F&B Controller / Purchase Manager any 1 10 the goods received. department /store (cella - ived commodities and ober such fied by te management. ee and sanitation ofthe receiving area. sik teespRB Control Trolleys atinery items such as Forms used in receiving Copies of standard purchase specifications + Tags ‘Rubber stamps & Office supplies ‘Receiving Procedure “Supplier sends goods with an ivoie / delivery nove as per the delve conveyed to him. Rocciving clerk takes corresponding purchase order and S PS with hi ry time table “Goods are weighed. Ifquantity matches the purchase order ‘Quality of goods is checked as per Specifications. Ifas required Tmoice stamp is placed on the invoice and receiving lesk sions quantity checked column, Goods are returned and Request for credit memorandum is raised jon sent to Accounts Tndenting department / Purchase ‘Manager & FSB Controller aur is made in Goods Receiving Book or Daly ‘Receiving Report. Gopy af nvoice /Deivenynole is signed and retuned tothe deliveryman.polivery Notes: SXYZSmplis Davey Nae To, zh rea [Qui | Becrntn | Uatace] Rema Delivered By Received By Spa Signe heecrvng dparent mus check al tvs fr quai by comparing te delivery sole Mita copy of te purchase orice Lad antes match up the purchase order, the items are checked for quality. The delivery note is normally made in duplicate, The top copy is retained in the reeiving department and the second copy is signed by the senior member ofthe receiving partment and returned to the delivery man. incase the quantity of items delivered is less than that siatedon the delivery note, and when tems ae not acceptable, the receiving department must ‘biain a eredit note. Any alteration to the delivery note must be countersigned by the delivery man, [fa supplier does not supply a delivery note for some reason, the delivery man must be esked to sign a dummy delivery note which can be drawn up, Invoices XYZ Suppliers Lid Invoice Invoice No. ggg air Your Order No: rice per unit] Amount Sales tax rate] Sales Tax | Total E Total Amount Payable: “ SS eeeab Cont Invoice is « document containing detailed information about the food deliveries. Iti presented to the receiving clerk in duplicate by the person making the delivery, who expects the receiving cleric to sign and return the second copy, thus acknowledging to the purveyor tht the hotel has received the commodities listed. The origina invoice is abil that must be paid and must be routed to the eeount department for paying the bil, Invoice Stamp ‘Therecelving clerk stamps all the invoices that have been checked by him. Tnvoice Starap Date Received Steward _ ‘The stamping ofan invoice is useful forthe following reasons: ¥ It provides verification ofthe date on w provides signature ofthe rece ‘qualities and prices ¥ It provides for the stewards signature, acknowledging that the food has been delivered. ¥, It provides for food contoler’s verification ofthe arithmetical accuracy of the bill. ¥ Itprovies fr signatory approval ofthe bill for payment by an authorized individual before a check is dawn. Reuinrretmenoninaam To Test Read fo unalant fondo ih xvrctce win waren ate invoice in quality, quantity, specification of price and all or part ofthe shipment is returned, a credit ‘memo is made out in triplicate, Distribution of copies areas follows ~ ood items have been received. It ig lerk and vouchers for the accutacy of quantities, D Seamdlor a8 Conmalier wn nes Kote s ontiler who sends ito the accounts department © Thirds kept at the receiving department. ‘original and both copies. The original and one copy are then copy is retained inthe reciving department.Hotel XYZ Request for credit memo /note To, it memo for the items listed below XVZ Supplies Ld, Credit Note No. Date: From: ‘Your order no. Tavoiee No, Total amount credited CatalogueNo {Quality | Description Grand Total rn meas yet sham, se ss sated snon, put and skllcheteAfershesing hems on receipt sag nade oe istaken fom ioe of ive note and veiht chines Sarthe ag along he peroation. The enol lice si oie and detente Eien copy tered by tein sioued at anor dato the Kchn fr ware op. tocol deparmen with the date oaus ied hele gReconilaion For, Icons he ccrd ot aes am he kitchen This serves many purposes ich as QuL say | ne ean (RE ce Per unit Tots Feb Conte Retueted Br Bests Den pore 9 — | ipep Control 14 Control of expensive food items + Receiving department weighs and records each item against the specific weight range © Assists in obtaining a mor € daly food cost percentage figure {Assists in controlling the stock level ofthese items. {i provides a reference number vo aid issuing to the kitchen when yield testing With cleatly marked date on the tag, i helps in efficient rotation of stock. Assists in weekly of monthly inventories as per the purchase weight marked on the tags. Hotel XYZ Total Weight ‘Total Value: _” CosUnit Supplier: Date Received: Total Weight ‘Total Value: Food Store Copy Send to food control office on the day of issue to kitchen,ee, Binet Receiving iY RSH A glerevenaht Abia Recelving: ts his me ¥ iat i 0 invlae oy Rte le aesompanying to delivery. The purveyors Baty te daven aaa Sety io hotel seamen eter theese gent aloni Toa he hotel. The receiving ler Mas to make a complete listing of each Pee rd fic tat 8 Fong every ered aa penne ea ne Tismathod fresh resevng clerk io ote vey cae ae ee Eratasea re tng Sly Iaspcing tn merce aa etoe set i ee tial whatever soots bo besrecied: Thereotine crake er 2 be tecouns of, The aecomsing pocol anaes eee ne sre fe iat is esevedthraigh mail fom purveye The nesouts theca Ghee prices and excasions as are done in standard receiving ootke wae Pearl odio’ i check the recelvingeck However itis ery time consuming sad suid vo Bactoed asa suprise check by FAD Contoler to check Gaudet cceving neds eee Mecveness ofthe receiving cle) sp UR Hotel XYZ Ulind Receiving Report No Date S.No. |Description Unit [Remarks t 4 tl i manager on daly basis All . Report: is prepared bythe receiving io charge / manager on daily basis. Al ‘broken down into following categories — purchases as thet of potatoes and onions which c siderable time)pep contro! ae 8 department: Some suppliers send under quality products mined with the gay. Ao sonetines tere isenexcesne meus heer cena ele elas te right quantity. Some beverages may be lied of shortof oe require weigh ome distributors repack standard products with ighter weight or lower quality than the original miner indicates or some times required quality products are arranged on top of the packing box tniferior quality products at the botiom ofthe box. All these frauds prevent the hotel from ag the best value of money, An efficient and responsible receiving clerk should be able to ack seh frauds or plferages and inform the purchasing manager immediately gjene and cleanliness of the area: The receiving area should be cleaned frequently and all ins should be Kept tightly covered. This is the area where all food and beverage items jyed in the hotel remain for some time aud any contamination at this stage may result in heavy Essts tmight also lend to some diseases. Hence frequent cleaning of floor, equipments such as seale, racks, bins and trolleys is must. Pest control methods should be employed to keep ime tabling of deliveries: The usual practice in many hotels isto take deliveries of perishable ‘arly in the moming and groceries are delivered in the ftemoon. For purpose of convenience id saving of time, itis advisable to time table deliveries with the cooperation of suppliers.