discounts comps webinar · overall restaurant profitability . 13 Discounts & Comps Net Sales Method...
Transcript of discounts comps webinar · overall restaurant profitability . 13 Discounts & Comps Net Sales Method...
Accounting for
Discounts & Comps
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Opening Comments / Introduction Problem Discounting more .
Monthly discounts in excess of of sales fairly common
The of discounting
Accounting & for discounts & comps
Several .
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Definitions
Discount Sales -
Price reductions of less than .
Examples of Discount Sales 1. Marketing & . 2. Employee . 3. Police / meals
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Definitions
Complimentary (comp) Sales -
charged or received in return
Examples of Discount Sales 1. Manager . 2. Guest . 3. . and other 100% give-aways
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Discounts & Comps
Two Main Methods -
1. sales method 2. sales method
Gross Sales Method 1. Discounts & comps .in sales 2. Discounts & comps are recorded in a m . account or . . . 3. Discounts & comps are recorded in one or more . accounts
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Discounts & Comps
Net Sales Method
1. Discounts & comps are .included in sales 2. Sales are reported of any discounts & comps
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Discounts & Comps
When discounts & comps are less than 3% of sales - usually a .affect on statements When discounts & comps are greater than 3% of sales - can have a on statements
Example - Discounts for One Period -
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Discounts & Comps
Gross Sales Method - Discount Account:
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Discounts & Comps
Gross Sales Method - "Expense" Discounts
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Discounts & Comps
Gross Sales Methods -
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Discounts & Comps
Net Sales Method -
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Discounts & Comps
Net Sales Method -
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Discounts & Comps
Gross Sales Method
Advantages -
1. Food, beverage and labor cost percentages are based on are
based on .business activity
2. Useful when food, beverage and labor
Disadvantages -
1. Prime cost percentages can be when evaluating overall restaurant profitability
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Discounts & Comps
Net Sales Method
Advantages - 1. Prime cost percentages are more .to
industry averages
Disadvantages - 2. Can .food and beverage cost
percentages
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What To Do?
Total Discounts & Comps LESS than 3% of sales - 1. Don't do .different 2. method should work well
Total Discounts & Comps GREATER than 3% of sales - 1. Be aware that cost percentages can be .by discounts 2. Use the sales method to prepare P&Ls 3. On Prime Cost Report use the sales method evaluate food, beverage and labor costs 4. Be aware that Prime Cost % can be using the Gross Sales Method 5. When comparing your Prime Cost % to industry averages use the sales method
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Ideas to Implement
1. .
2. .
3. .
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5. .