Pub Ullage

Kay Thompson
Kay Thompson Registered Posts: 22 New contributor 🐸

I'm sure some of you have pubs as clients?

Can you help me as to where/hoe ullage is recorded.



  • Scalloway
    Scalloway Registered Posts: 10 New contributor 🐸
    In my experience it is just been accepted as being part of the cost of sales.
  • SandyHood
    SandyHood Registered, Moderator Posts: 2,034 mod
    I agree

    When I worked in financial control for managed bars and pubs, I'd take out the ullage for comparison purposes to ensure the receipts were being matched to the liquor consumed.
    But for financial reporting, especially in owner-managed pubs the ullage is stock that has been bought but has been wasted rather than sold, so it is part of cost of sales.
  • T.C.
    T.C. Registered, Tutor Posts: 1,448 Beyond epic contributor 🧙‍♂️
    I do one pub's accounts and do not account for it separately.
  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
    I've not had a pub client but, assuming ullage is wastage (like dripping from the beer tap) then my understanding is it doesn't need accounting for separately.

    I believe the requirement to keep records of wastage is in case of HMRC checking up that the wastage is at a reasonable level.
  • deanshepherd
    deanshepherd Registered Posts: 1,809 Beyond epic contributor 🧙‍♂️
    Or for the brewery monitoring whether the staff are drinking the profits!
  • Janet B
    Janet B Registered Posts: 4 New contributor 🐸
    Hi, I am also book-keeping and doing the accounts for a pub. I can see that ullage is part of cost of sales. What about drinks that have not been paid for such as staff refreshments, free gifts (promotions) and owners own consumption. Is there an industry standard for dealing with these?
    HMRC seems to prefer it if they are classed as a sale with a CR to vat control - then DR either as a business expense (promotions and staff expenses) or drawings (own consumption). This is what I am planning to do - any better suggestions please?
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