Food Cost calc - including gas surcharges?

[mrbanks]

Hey a quick general question - Are you separating any fuel surcharges if broken out on the invoice or are you including the total amount in with the food cost?
I guess this question could apply to shipping or freight costs as well.

 

[Piper]

I split the surcharge between COGS:Food and COGS:Supplies (paper goods) based on the weighting of those two items on the invoice.

Unless you just want to track the fuel surcharges for your own knowledge, you shouldn’t separate it. That charge is directly related to your food and paper procurement, and is therefore part of your COGS.

Same thing applies to shipping and freight costs. If you have a piece of equipment shipped, the freight costs become part of your cost basis.

 

[bodegahwy]

You always have been paying for fuel in your food deliveries. Just because they add a little more now does not make it different. Leave it in there.

We don’t bother splitting food and supplies. If we use it up, it goes in the equation. We have gone from 29.3 to 30.0 in the last year. Food, paper, supplies… etc all in there.