Setting Up the Prime Cost Wizard

Setting Up the Prime Cost Wizard
The Configuration Manager Overview New Store Setup Basic Store Information Location 1. Restaurant Name. This name will appear at the top of the data entry screen and all reports. For multi‐unit companies it is best to include unit number or location within the store name for easily visible differentiation. 2. State or Province. Enter the state, province or country if outside the U.S and Canada of this restaurant location. Do not enter the state of the corporate office unless it is the same as this restaurant. This information will be used for future industry segmentation comparisons to restaurants in the same geographical area. 3. Address. Used in reports and other parts of the program. 4. Phone number. Used by our technical support team in case they need to contact the store. Industry Segment 1. Service Type. Selecting the service style that “most closely” resembles your type of restaurant will help us guide you through the setup process. It also enables you to compare your restaurant’s performance against industry averages. 2. Seating Capacity. Seating capacity is used to report sales and guest counts as compared to number of seats, a common industry measure of a restaurant’s sales. 3. Square Footage. The PCW uses your restaurant’s sales per sq. ft. to compare against industry standards for profitability and utilization results. 4. Lease or Own. Some profitability indicators such as sales to investment ratios and occupancy costs differ between properties that are owned vs. those that are leased. If you own both the property and the restaurant, but you have setup the property as a separate company and are leasing back to your restaurant, then select Lease. 5. Base Rent. Enter the base monthly rent here excluding any percentage rent increases based on sales. This will be used to determine occupancy cost as a percentage of sales and will be used in several reports. 6. Percentage Rent. The PCW program use the base rent to determine occupancy cost unless the percentage rent as a percentage of sales is greater, then it will use the percentage rent computation. This information is for reporting purposes only and for comparison to industry averages. Reporting and Accounting Periods 1. End of Reporting Week. The Prime Cost reports are based on weekly comparisons. The most common practice is for weeks to run from Monday to Sunday (even if you are closed on Sunday) with Sunday being the last day in the sales week. Ending inventory dates are based on the End of Reporting Week day. The PCW prime cost and weekly reports are based on the day you set, i.e. if you select Sunday as the last day of the week your reports will be in Monday thru Sunday sequence. If you were to select Tuesday as the last reporting day of the week then reports will be shown in Wednesday thru Tuesday order. 2. Accounting Cycle. The Prime Cost Wizard program supports 3 different accounting cycles for the purpose of period reporting. While it’s typically a standard practice to select the cycle that matches your accounting software, the Prime Cost Wizard can track and report differently than your accounting software cycle. a. 12 Calendar Months. In addition to tracking on a weekly basis, period totals are tracked on the standard calendar month. b. 13 4‐week Periods. Weekly totals (based on the End of Reporting Week) are grouped into 13 4‐week periods or 52 weeks. When using a 13‐period accounting cycle, it becomes necessary to add a 5th week every 5‐6 years or so to allow for leap year and the difference between the standard calendars of 365 days vs. the 13‐period calendar of 364 days. The program allows for the user to arbitrarily assign a 5th week in the 13th period for a given year (see Accounting Year‐End). c. 4/4/5‐week Periods. Weekly totals are grouped into 12 monthly calendar periods (Jan. thru Dec.) but the dates included in each calendar period are grouped into 4 or 5 weeks for each month. Each calendar month period will consist of either 4 or 5 weeks, determined by how many occurrences of the End of Reporting Week day there are within the month. 3. Accounting Software. The Prime Cost Wizard currently exports sales and purchase transactions in three different formats; QuickBooks, Peachtree and standard ASCII comma‐delimited file format. Select the accounting software you use – if you don’t use any accounting software then select “None”. If selecting “Other”, then please enter the name of it for informational purposes only. 4. Version of Accounting Software. Select the correct version of supported software. This is important when troubleshooting export problems. 5. POS System. Select the POS system you use from the list provided. If your POS isn’t listed then select “Unknown”. 6. Accounting Year‐End. When using a 13‐period accounting cycle, it becomes necessary to add a 5th week every 5‐6 years or so to allow for leap year and the difference between the standard calendars of 365 days vs. the 13‐period calendar of 364 days. Select the correct year‐ending date for each of the years shown. PCW uses this setting when comparing current and prior year periods. These settings should match those of your accounting software; however, having them set differently will not affect anything when exporting sales and purchase transactions. Set Store Image PCW allows each store to display a company logo on the top of each screen. This image can be set at the Company level (one image for all the stores belonging to that company – ideal for multi‐unit, same‐
concept stores) or at the Store Level (a different image for each store). Images can be in either JPEG or GIFF file format. Images should be no more than 200 pixels in width or 100 pixels in height; however, you can upload any size image and our staff will resize it for you. To upload a company or store image: 1. Click on the browse button to locate and select the image file to be uploaded. 2. Click on Upload to transfer the file to the PCW site. 3. Allow up to 3 days for the PCW staff to approve or resize the image prior to activating it for display on the PCW program screens. Copy Store Items This feature is for use by multi‐unit companies where each store will be setup the same. It is only applicable upon the creation of a new store and is disabled once executed. For more information about using this feature please call tech support. Import Accounting Data Overview The Prime Cost Wizard program was designed as both a powerful reporting tool and as a data entry tool for sales and purchases recording to supported accounting software. We strongly recommend that you use this tool to import your existing vendors and chart of accounts, as this will make the remainder of the setup process much easier and efficient. QuickBooks See Setting Up the QuickBooks Web Connector. Peachtree See Setting Up the Peachtree Interface Other See Importing From a Spreadsheet File Sales Overview The primary purpose for entering sales data into the Prime Cost Wizard is to determine the total amount of food, beverage and merchandise sold each day. We accomplish this by providing a Daily Sales Report (DSR) entry form that is customized to your specific restaurant. In addition to its function of capturing sales totals, the DSR entry form can be expanded to be a cash control tool for spotting cash shortages and as a sales journal for creating journal entry totals into your accounting software. The recommended setup for most restaurants is to use a single DSR entry form for each day. However, if needed, the Prime Cost Wizard supports multiple DSR entry form screens and can be configured to capture separate shift totals for meal periods, catering and banquet revenue not recorded on your POS, or totals from separate profit centers such as gift shops, arcades or entertainment venue. A Typical DSR Entry Form Revenues consist of sales and other credits rang up in your cash register or POS system. Settlements reflect the method of payment (receipts) or an adjustment to revenues (i.e. discounts). Ideally, revenues should match settlements exactly. The difference is referred to as Cash Over/Short and is typically expensed on the P&L. 3 Ways to Use the DSR Entry Forms 1. Shoutcut Method ‐ Capture Sales for Prime Cost Calculation Only. If you do not intend to use the DSR form to calculate cash over and short or to create accounting journal entries, then you won’t need all of the data fields shown in the example above. The example below is sufficient for capturing prime cost‐related sales totals. Non‐sales totals such as sales tax collected or the types of payments received are not used in the calculation of prime cost.
2. Recommended Method ‐ Capture Sales and Track Cash Over/Short. When used as a cash tracking tool, the Prime Cost Wizard uses a simple balancing formula that can be used for comparison to your cash register or POS closing report to quickly identify discrepancies between reported sales and actual cash deposits to your bank account. This discrepancy is referred to in the industry as Cash Over/Short. 3. Complete Sales Journal for Accounting. In addition to the obvious benefit of better cash control, another advantage of configuring the DSR entry form using the cash tracking option is that you also have the necessary information for creating a balanced journal entry into your accounting software. Revenues are entered as credits and settlements as debits. The PCW program has been designed to give maximum flexibility so that sales journal entries can be configured to match your current methods for recording to your accounting program. Setup the DSR Entry Form 1st Time Setup By default, the Configuration Manager will create the initial DSR entry form needed for recording Daily Sales Totals. You will be prompted later to add the revenue and settlement items to be included on the form. 1. Date to begin recording sales. PCW allows you to begin recording sales history up to eight weeks prior to subscribing. Please select the date you want to begin recording sales. 2. Cash Purchases. Check this box ONLY if you pay cash from your daily sales receipts or cash drawer for some purchases. Do not check this box if you ONLY make cash purchases from a designated petty cash fund. Cash purchases from a petty cash fund or other cash on hand source such as your change bank are recorded in the Purchase program. Create DSR Entry Form For most operations a single DSR entry form is sufficient for recording sales. The design and flexibility built into the PCW are designed to keep data entry tasks simple and quick; therefore we recommend using a single DSR entry form for recording daily sales. However, some operations such as those using a cash register to “Z” out each shift (i.e. lunch and dinner), prefer to use a separate DSR entry form for each shift. Another reason for using a separate DSR form is to record sales generated from other profit centers such as catering or banquets that are not reflected in your POS totals. Recording these sales is important in order to get accurate prime cost reports. To create additional forms: 1. Click on Setup DSR Entry Forms from the Sales menu tree. 2. Give the form a name such as Lunch Shift or Catering Sales. 3. Select the date to begin recording sales for this form. 4. Select the category that best describes this form. 5. Check the box if you make cash purchases from daily sales receipts. 6. Check the box if the sales in this form are to be included in the export to your accounting software (where supported). If this form is being used to record sales already entered into you accounting software (i.e. using QuickBooks to invoice your catered or banquet events) then uncheck this box. 7. Uncheck this box to deactivate this form so that it no longer appears in the Sales menu list. 8. Check this box if you are using the cash over/short calculation feature for this form. Warning! Adding another DSR entry form should only be done by PCW support technicians. Please contact us at [email protected] to add additional forms. DSR Export Configuration The most common method for accumulating sales and posting them to your accounting software is to post daily totals as a journal entry to your accounting software. However, some accountants prefer not to make a separate journal entry for each day’s totals, preferring to group multiple days into a single weekly or monthly journal entry (or sales receipt function in QuickBooks). Likewise, others prefer to make a separate journal entry for each shift (i.e. Lunch, dinner, profit center, etc.) 1. DSR Data Accumulation. The default for accumulating data is set to Daily. Select the accumulation level to be used for this store. (Hint: Shift denotes a DSR form) a. Shift. A separate journal entry will be created for each DSR form. b. Shift/Weekly. Data for each DSR form within a specific week will be accumulated into a single journal entry. c. Shift/Period. Data for each DSR form within a given period (i.e. Month or accounting period) will be accumulated into a single journal entry. d. Daily. (Recommended) This is the default. All DSR forms will be combined into a single journal entry for each day (does not include DSR forms that are designated as Do Not Export). e. Weekly. All DSR forms will be combined into a single journal entry for each week (does not include DSR forms that are designated as Do Not Export). f. Period. All DSR forms will be combined into a single journal entry for each accounting period (does not include DSR forms that are designated as Do Not Export). 2. Export Method. The default is for all sales to be exported via journal entry format. If you are using QuickBooks, then you can elect to export sales using the Sales Receipt function in QuickBooks. We don’t recommend using the Sales Receipt function unless you are accustomed to using it in the past and have a specific reason to continue doing so. Adding/Editing Revenue (Sales) Items Adding/Editing Settlement (Receipts) Items Adding/Editing Non­Settlement Items Adjustments and Allocations DSR Screen Layout Purchases and Inventory Activate Vendors Payment Methods COGS Expenses Assign Inventory List Order Labor Labor Form Setup Labor Categories List Order