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Stock wastage

TrishTrish Settling In NicelyRegistered Posts: 20
in General accounting discussion
A client who is a Publican has told me that they have to waste 10 pints of beer on every barrel because the barrel cannot be tipped far enough to access this beer, they also claim that it would not be saleable anyway because it would contain the dregs at the bottom of the barrel. Has anyone ever encountered this situation? If so how have you treated this, as a cost to be treated as an expense in the profit and loss a/c? I would appreciate some advice on how to deal with this.

Regards Trish

Comments

  • columbiacolumbia Experienced Mentor Registered Posts: 580
    Hiya

    Look a bit lower down the page at the heading "pub waste" and I think you will find that this has already been discussed.

    Kind regards
    Tracy
  • TrishTrish Settling In Nicely Registered Posts: 20
    columbia wrote: »
    Hiya

    Look a bit lower down the page at the heading "pub waste" and I think you will find that this has already been discussed.

    Kind regards
    Tracy
    Thanks for directing me lower down the page to "pub waste". Having read through the replies I am still unsure of how to deal with it. Can anyone explain in simple terms how to do so. Sorry if I am being thick, but I am having a real problem getting my head round this.

    Regards Trish
  • BluewednesdayBluewednesday Font Of All Knowledge Registered Posts: 1,624
    You don't have to deal with it as it is already included in the cost of sales.

    you buy a barrel for £10 and sell the beer for £20, the wastage is already accounted for.
  • PaulPSBPaulPSB Feels At Home Registered Posts: 55
    Trish wrote: »
    A client who is a Publican has told me that they have to waste 10 pints of beer on every barrel because the barrel cannot be tipped far enough to access this beer, they also claim that it would not be saleable anyway because it would contain the dregs at the bottom of the barrel. Has anyone ever encountered this situation? If so how have you treated this, as a cost to be treated as an expense in the profit and loss a/c? I would appreciate some advice on how to deal with this.

    Regards Trish

    Your client might consider changing his storage racks. Many pubs now use barrel racks that are spring loaded so as the beer is pulled off and the barrel gets lighter the barrel tilts to reduce wastage.
    If his kegs are static you will get wastage but my understanding from pubs I have worked with is that 5-6 pints is about normal.
    Accounting for the wastage has been covered in another thread
    Hope that helps

    Paul :001_smile:
  • JodieRJodieR Experienced Mentor Registered Posts: 1,002
    A little plug for one of my genuinely decent clients who invented this piece of kit...

    www.cellarlogistics.com
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