Variance reports allow you to compare your actual register sales to the theoretical sales (what should have been rang into the register based on usage) at the end of each inventory period. By comparing your register sales to the theoretical sales you can learn how much profit you are losing and if or how bad of a theft problem you really have. To get started, from the control panel, click "Variance Reports".
To see your variances, you just need to enter your total sales for the inventory period for each category of product that you are tracking in Bar Cop. For example: If your total in liquor sells for the inventory period is $5540.50, enter 5540.5 under "Register Sales" in the liquor column.
When you enter your register sales, you will learn:
1) Variance dollar amount - is the difference between your actual sales and your theoretical sales after adjustments (see making adjustments). The calculated difference is your profit loss, or what you lost due to theft, over-pouring, giving away product, etc.
2) Variance percentage - is the percentage of your retail profit loss. A good variance percent is under 5%. Anything over 10% and you have a large theft problem. IMPORTANT: An accurate variance percent can only be calculated when weighing products. If you are point counting, your margin of error is to high to know if you really have a theft problem or not.
If you are concerned about theft or believe you might have a theft problem, these are the two most important numbers in Bar Cop.
Want to dig deeper?
Click on a main category and break sales down by individual product.
Things to know:
1) Your calculated variance numbers will only be as accurate as how your inventory is taken. When weighing products, your variance numbers will be accurate and show theft. With point counting, variances will not have close to the same accuracy.
2) Entering your total register sales for each category will give you the best overall look at your establishment's theft problem. You do not need to check individual products on a regular basis. If you feel like a specific product is being stolen, that would be a good reason to look at an individual product.