Shrinkage

Created by Nefhy Webster, Modified on Thu, 02 May 2024 at 05:32 PM by Nefhy Webster

Estimated reading time, 7 minutes

It refers to the loss or reduction in the quantity of inventory due to various reasons, such as deterioration, theft, obsolescence, or expiration of perishable products, among other factors. Shrinkage is usually recorded as a decrease in the quantity of products that should be available according to the inventory recorded in the system.

Panel for Managing Shrinkage

Shrinkage affects profit margins and operational efficiency. To address this issue, management can be implemented as a security measure with inventory monitoring, quality controls, and more efficient management processes to reduce shrinkage and improve inventory management accuracy.

Segment	Description
Number	This is the descending numerical sequence of the shrinkage that have been recorded in the system.
Shrinkage	This field presents the reason why this shrinkage was created.
Date	This is the creation date of the shrinkage.
Type of Shrinkage	This section visualizes whether the shrinkage was made to the Menu, inventory product, or Recipe Modifier.
Item / Product / Modifier	This field contains the name of the recipe, product, or modified item with its identifying code.
Quantity	Here, only the amount of shrinkage is displayed (Note: if the shrinkage is in units, it will only be visible when selecting the view button).
Cost	This is the value of loss caused by the shrinkage.
Observations	Any detail added to explain the shrinkage is displayed here.
Created by	The user who created the shrinkage in the system is recorded in this field.
Status	The only status of the shrinkage once saved in the system will be processed.
Commands	These are for viewing and deleting products (Note: This field is not titled).

Panel for Creating Shrinkage

It is the act of intentionally recording a decrease in the quantity of inventory in the system. Most of the time, shrinkage is the result of unintentional losses due to theft, deterioration, or other legitimate reasons. In some cases, there may be situations where shrinkage is deliberately created for personal gain or to conceal fraudulent activities.

Segment	Description
Date	The system automatically displays the creation date when opening the Shrinkage Creation.
Selection	In this section, the selection of the shrinkage is displayed if it was made on an Item, Product, or Modifier.
Reason	Here, the reason for the shrinkage is selected, previously established in the Shrinkage Reasons section.
Quantity	This field establishes in digits the amount set to be reduced in the system
Unit	This field records the unit of measure set for the reduction (Note: This field will only appear when the Product indicator is used).
Deduct Costs	By selecting this option, the shrinkage will deduct the cost of the product.
Observations	Any detail added to explain the shrinkage is recorded here.

Panel for Viewing Product Shrinkage

This panel provides detailed information about the quantity and reasons behind shrinkage, offering visual and detailed information about product losses, which helps understand and effectively address sources of waste.

Segment	Description
Code	This field corresponds to the numerical sequence based on the quantity of shrinkage recorded in the system.
Selection	In this section, choose whether the shrinkage will occur on an Item, Product, or Modifier.
Reason	This field displays the reason for creating the shrinkage.
Quantity	Here, only the quantity of shrinkage is displayed.
Unit	This field displays the unit of measure set for the reduction (Note: This field will only appear when the Product indicator is used).
Date	This is the creation date of the shrinkage.
Cost	This is the value of loss caused by the shrinkage.
Created By	The user who created the shrinkage in the system is recorded in this field.
Creation Date	This is the creation date of the shrinkage, with the exact time of creation.
Observations	Any detail added to explain the shrinkage is displayed here.

Creating Shrinkage Reasons

This refers to inputting or registering in the system the causes for which a decrease in inventory has occurred. These reasons may vary and are generally related to situations where products cannot be sold or used for valid reasons.

Panel for Managing Shrinkage (Shrinkage Reasons)

Allows analyzing and recording the underlying causes of losses or reductions in operations, providing detailed information about the specific reasons behind the shrinkage and enabling the creation of tools to take corrective and preventive measures.

Segment	Description
Shrinkage	In this field, new shrinkage reasons can be created.
Code	The system establishes this, starting from 19 and increasing from there.
Name	This is the reason established for the shrinkage.
Description	This displays all the details to explain the reason for the shrinkage.
Export	From here, the product list can be downloaded.
Select File	By clicking this icon, the file browser will open to choose the file containing the bulk upload of shrinkage reasons.
Import	From here, the file with the previously registered shrinkage reasons is loaded into the system.

Panel for Creating Shrinkage Reasons

This tool allows registering and defining the specific reasons why shrinkage occur. These reasons can vary widely depending on the industry or type of operation, and the creation of this specific panel facilitates systematic capture and subsequent management of these causes.

Segment	Description
Name	This establishes the reason for the shrinkage requirement.
Description	All details to explain the reason for the shrinkage are recorded here.

Automatic Shrinkage

Refers to the loss or reduction that occurs systematically and predictably as a normal part of the process. Automatic shrinkage is considered planned loss that is inherent to the process itself and occurs consistently. These losses are anticipated at the time of creating the ingredient and are considered a normal part of the process.