Inventory Purchase and issuance for a resturant sort of business

What I understand that we purchase inventory under “Inventory in hand”. But, I am unable to find that how will we get the inventory issued to make finished cooked product in kitchen. We do not directly sale inventory items, but the finished cooked product that we charge to our members. Can any one help us figure out how to issue the inventory items? Sales orders and sales invoices do not appear to work in this case.

In your situation I don’t think using “Inventory on Hand” is your best solution. You should just post your raw materials to a P&L Purchases Account. If you read right through this post there is a discussion.

Also, you wouldn’t use Sales Orders or Sales Invoices. If you are running a cash register or a cash tin - set up a Cash Account - Kitchen Float. At the end of each day do a Receive Money - Kitchen Sales. Then when an amount is transfer to your Bank Account - use Bank Transfer.

Come back if you require any further assistance or clarification.

I have found a workaround. Actually there are 400+ inventory items, we purchase regularly every month. So, inventory in hand is something we really need as we do physical stock count every month. Moreover, its a non-comercial club for company employees, so we don’t deal in cash. I have found a workaround. We will purchase inventory under Inventory in hand. We will use sales invoice to issue inventory to kitchen at zero sales price (under Inventory-sales) and the cost of inventory consumed will appear under Inventory-cost.

Actually we are running a separate sotware for our finished products customized according to our company system (we call it Party Sheets / Members Billing). We will put sales amount of finished cooked products in Manager through journal entries.

Use of inventory module gives us good flexibility in terms of purchase of raw material, supplier payments and our bank account management.

Congratulations, a very workable solution - good luck