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The Purposes of Food and Beverage Cost Control

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The Purposes of Food and Beverage Cost Control
Contributed January 30, 2002 by Sivanesan Sivakaruniam siva@kepland.com.sg

Audit Program: Food & Beverage Cost Control Objective: Prepared By Date To ensure food and beverage cost incurred is reasonable, properly supported and accounted for. : _______________________ : _______________________ Audit Steps 1. a • • • • • • • • Purchase Quotation Ensure vendors selected are approved by management. Ensure vendor list is periodically reviewed by management. Ensure purchase request is properly approved by user department. Check quotations are obtained from vendors according to corporate policy (monthly/quarterly/half-yearly update of price). Match quotations with price comparison list. Ensure vendors are selected based on quotations submitted and, more importantly, on vendor’s past performance. Ensure quotation selected is approved by purchasing manager. Ensure cost plus vendor is approved by financial controller and general manager. Purchase Order Match purchase order to supporting quotation to ensure corporate policy on selection of vendor is followed. Ensure management has checked the estimated inventory level does not exceed the maximum inventory level. If exceeded, customer order is needed to support the purchase. Check estimated inventory level to past utilization rate to ensure no over purchase. Ensure that there are detailed recipes to facilitate efficient ordering. 1 Reviewed By : ________________ Date : ________________ WP Ref.

b. • •

• •

Audit Steps • Ensure purchase orders are properly authorized by management according to authority level.

WP Ref.

2. • • • •

Receipt Check goods received are supported by approved purchase order. Ensure goods received are properly inspected for quality and quantity/net weight by Receiver. Check goods received to ensure expiry date of product is acceptable. Ensure fresh/frozen/chilled food items received are marked with receipt date to alert kitchen staff of potential usage period. Match invoice details to

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