This presentation is all about the issuing control......for each department the schedule for issuing control is made.....All departments are required to come to stores for stores at the specific date and time. It can also be known as a Requisition.

1. ISSUING CONTROL
By:- Ashish Gupta
Roll No:- 415
4th Semester

2. Introduction
For proper control at this stage of control cycle, no food-stuff should be issued
without proper requisitions. The main objectives in issuing food are: -
1. To ensure the proper authorization for the release of merchandise.
2. To account properly for daily food issues.

3. Product Issuing
A well-designed issuing system has the following objectives :-
■ To limit access to storage areas to authorized staff members only.
■ To match items removed from storage with actual production requirements.
■ To assess quantities and costs of products removed from storage. This record
keeping becomes important when updating perpetual inventory records. This
record is required for assessing costs of issues to calculate daily food and beverage
costs.
■ The requisition forms can be used to provide information for daily cost calculations
or to update perpetual inventory records.
■ Issuing should be limited to specified times.
■ Beverages to replenish bar inventories are issued either at the beginning or end of
each bar shift.

4. The Food Requisition / Issue Process
1. The form identifies each item to be withdrawn from storage.
2. The purchase unit size of each item needed.
3. The quantity of each item needed is based upon the recipes to be used during
the required time period minus any products already withdrawn from
inventory and available in production.

5. Product security can be achieved if a few
principles are observed:
1. Food, beverages, and supplies should be requisitioned only as needed based on
approved production schedules.
2. Required items (issues) should be issued only with management approval.
3. If a written record of issues is to be kept, each person removing food, beverages,
or supplies from the storage area must sign, acknowledging receipt of the
products.
4. Products that do not ultimately get used should be returned to the storage area,
and their return recorded.

6. Food Requisition Form
Food Requisition
Storage Type (Check one) : Date : ________________
Refrigerated _________________________ Work Unit : __________________
Frozen ______________________________ Approved for withdrawal __________
Dry ________________________________
Item Purchase
Unit
No. of Units Unit Price Total Cost Employee Initials
Received by
(Consuming Dept.)
Withdrawn By
(Storage Dept.)
Col.1 Col.2 Col.3 Col.4 Col.5 Col.6 Col.7
Total

7. Requisition
■ This is a form used for taking goods from issuing department. Concerned head
of the department containing information like name, unit cost, total cost and
signature, issued and balance prepared it.
■ This is also known as indenting.
■ Operating cost of kitchen is deduced from this form and gross profit calculated.
■ It is prepared in triplicate one goes to issuing the other to F & B control and the
last remains with the copy.
■ It is vital that a copy of the storeroom requisition form be sent to the purchasing
agent after it has been used so that this individual will have a sense of the
movement of product in and out of the storage areas.

8. ■ After production personnel complete the form, it goes to the chef.
■ Then, the form goes to the appropriate storage area.
■ The storage or management employee responsible for issuing verifies that items listed
were indeed withdrawn by initialing column.
■ After issuing is completed, the items should be transferred promptly to the appropriate
production occurred.
■ When all daily issues are finished, the storeroom or controls personnel may use the
forms to update perpetual inventory records
■ The food requisition forms for the day can be forwarded to the F & B Controls
department to review and to use in calculating the daily food cost information.

9. Transfer notes
■ This is an internal form of requisition note, which is used when a department
requisitions something from another department which is not in stores.
■ The format of the form used can be same as that used for the store requisition
■ The transfer notes and requisition notes are sent at the end of the day to the
controller’s office.

10. Breakages and Damaged Goods
■ Items becomes broken or found to have leaked away, etc. These items must be
recorded in a damaged goods book.The book would record the
■ Date,
■ Description of items,
■ Details of from whom it was purchased,
■ Value,
■ Signature of the purchasing officer who verified the damaged goods to restrict
unexplained difference in the actual stock

11. Pricing of issues
In a department there must be a system established so that the department can be
fairly charged for what it has requisitioned for its use. The method of pricing the
food issued depends mainly on the type of commodities in question.
■ Perishables
■ Non Perishables

12. Perishables
■ Actual Purchase Price
■ Perishable commodities as already stated they frequently go direct to the
kitchen as direct issues and priced against the actual purchase price of the
commodities

13. Non Perishables
■ Actual Purchase Price
■ Simple Average Price
■ Weighted Average Price
■ Inflated Price: Here the goods are issued at cost plus, say 10 or 15 % to recover
the cost of handling and storage charged.
■ Standard Price: A Standard Price is to decide on for a given period, usually 3-6
months

14. Cont..
■ Last In First Out (LIFO): This may be applied to items which have a fluctuating
market price. This assumes that issues will be made with the normal rotation of
stock, but priced out at the latest purchase price for the items.
■ First In First Out (FIFO): This may also apply to items which have a fluctuating
price. This assumes that issues will be from the earliest purchases and priced
accordingly.

15. Transfers
 Food or beverage products may be transferred from one food service unit to
another. For example, it is likely that fruit juice, vegetables, and similar items
are taken from the kitchen for use in the bar, while wine, sherry, and similar
items may be taken from the bar for use in the kitchen.
 Transfers out of the kitchen are subtracted from the cost of food sold and
transfers in to the kitchen are added to the cost of food sold.

16. ■ Intraunit Transfers
■ Between Bar and Kitchen
– Cooking wines and spirits
– Fruits, juices and dairy products
■ Between Kitchen and Kitchen
– Large hotels that operate more than one kitchen
■ Interunit Transfers
■ Transfers of food and beverage between units in a chain

17. The written Purchase Order form should contain
space for the following information
Item Name
Spec #, if appropriate
Quantity Ordered
Quoted Price
Extension Price
Total Price of Order
Vendor Information
Purchase Order
Number
Date Ordered
Delivery Date
Ordered by____
Received by_______
Delivery Instructions
Comments
Purchase Order Information

18. Advantages of a Written Purchase Order
■ Written verification of quoted price.
■ Written verification of quantity ordered.
■ Written verification of the receipt of all goods ordered.
■ Written and special instructions to the receiving clerk, as needed.
■ Written verification of conformance to product specification.
■ Written authorization to prepare vendor invoice for payment.
© Ashish Gupta

19. The Beverage Requisition / Issue
Process
■ Since beverages, by their nature, are very susceptible to employee theft, there
are several additional concerns in transferring beverages from storage to
production areas.

20. Establishing Bar Par Inventory
Levels
■ A bar par is an established number of bottles of each type of beverage that is
always kept in behind-the-bar storage areas
■ A bar par is established for each type of liquor and wine kept behind the bar
■ An important rule is that empty bottles must be presented before full bottles
are issued.

21. Beverage Issuing Steps :
■ At the end of each shift the bartender places the bottles emptied during the shift on top of the
bar.
■ The bartender completes a beverage requisition form recording the name of each type of
liquor or wine emptied.
■ The beverage manager checks the number and type of empty bottles on the bar against the
information on the beverage requisition form.
■ The bartender takes the empty bottles and the beverage requisition to the beverage storage
area.
■ Empty bottles are broken or otherwise disposed of according to local or state laws, or as
specified by the property’s control requirements designed to prevent re-use.
■ Total cost calculations and the beverage cost percent calculations at the bottom of the
requisition form are normally completed by management or F & B Controls personnel.

22. Beverage Requisition Form
Beverage Requisition
Shift : Morning Date : 16.02.2006
Bate : Main Bartender : Edwin D’souza
Liquor Number of Bottles Size Unit Cost Total Cost
Col. 1 Col. 2 Col. 3 Col. 4 Col. 5
B.Scotch 3 750 ml Rs.1200 Rs.3600
B Gin 2 750 ml Rs.200 Rs.400
Total Bottles : _____________________ Total Cost : _____________________
Check on :
OK to Issue : ___________________  Lose price
Issued by : ___________________  Reg. Price
Received by : ___________________  High Price
(cost) / (revenue) = (beverage percent)

23. Bottle Marking
■ Bottle marking identifies a bottle before it is issued. It may simply identify the
bottle as house property, or it may also contain information about the bottle’s cost
and / or date of issue.
■ There is more than one bar in a property bottles should additionally be marked with
the site to which it is issued.
■ The bottle mark is an adhesive-backed label or hand-to-remove ink stamp, with a
logo or symbol difficult to duplicate
■ Bottle marking is important for two other reasons.
■ If the cost, from the daily receiving report or delivery invoice, is recorded on the
bottle, it is easier to complete the issue requisition form.
■ If the date of issue is recorded on the bottle, it is easier to keep track of the rotation
of bottles behind the bar.

24. The End