Good stock control is one of the fastest ways to protect your margin in hospo. When your POS and your stock system work as one, every sale, delivery and stocktake feeds the same numbers, so you always know what's on the shelf and what each dish really costs.
This guide covers how to use your POS system for better inventory management, with practical steps you can put in place straight away. We'll also show how PowerEPOS Stock, the stock and inventory module built into PowerEPOS, brings it all together in one system.
Why inventory management matters in hospitality
Food and beverage stock is one of the biggest costs in any café, restaurant, bar or pub. Supplier prices change often, portion sizes can drift during a busy service, and small amounts of waste add up over a week.
Getting stock right means you order what you need, price your menu with confidence and have accurate numbers ready for your accountant. It also gives your team back the hours they'd otherwise spend counting and updating spreadsheets.
Here's how quickly it adds up. A venue turning over $50,000 a week with 30% cost of goods, wasting 2 to 5% of that stock, is throwing out $300 to $750 a week. That's $15,600 to $39,000 a year.
What is a POS with stock management?
A POS with stock management combines point of sale and inventory control in one system. Every sale deducts its recipe ingredients automatically, so stock levels, recipe costs and GP stay current without separate stock software or double data entry.
With PowerEPOS Stock, you add a menu item once, update a recipe once and train your team on one system. There are no exports, imports or second logins to manage.
7 ways to use your POS for better inventory management
1. Cost every recipe, including sub-recipes
Link each menu item to its ingredients so you know exactly what it costs to make. Use sub-recipes for sauces, bases and dressings that appear across several dishes, so a change to one ingredient flows through to every dish that uses it.
Recipe costing often shows a different picture from the one you expect. A $22 burger you think costs $6.50 to make (29.5%) might really cost $9.50 (43%) once every ingredient is counted. Knowing the real figure lets you adjust the price, the portion or the recipe.
2. Know your real costs with Last Cost and FIFO
PowerEPOS Stock uses two costing methods, each at the point where it's most useful. Day to day, stock is valued at the most recent price you paid (Last Cost), giving you a fast, current view of costs and GP. When you finalise a stocktake, FIFO (First In, First Out) calculates your true Cost of Goods using the actual cost of each batch, in the order it was bought and used.
Last Cost vs FIFO in PowerEPOS Stock
|
Last Cost |
FIFO |
| When it is used |
Every day, as you trade |
When you finalise a stocktake |
| How stock is valued |
At the most recent price you paid |
At the actual cost of each batch, oldest first |
| What it gives you |
A fast, current view of costs and GP |
Accurate, audit-ready Cost of Goods |
| Best for |
Daily decisions and menu pricing |
Month-end figures and your accountant |
For example, say you buy 10kg of flour at $2.00/kg in week one, then restock at $2.50/kg in week two. Day to day, all flour is valued at $2.50/kg. When you finalise your stocktake, FIFO applies $2.00/kg first, then $2.50/kg, so your Cost of Goods reflects what you actually paid, in the order you used it.
3. Let every sale update your stock automatically
Once your recipes are set up, every sale through PowerEPOS deducts its ingredients from stock. Your stock levels stay current through every service, with no manual adjustments at the end of the night.
4. Order and receive stock in one place
Create purchase orders in your back office and email them straight to suppliers, with a clear record of what was ordered and when. When a delivery arrives, check it against the order, see any back orders and catch price increases before the stock is put away.
If your suppliers email PDF invoices, the Invoice Ripper add-on reads the supplier, ABN, date, tax and every line item. Your team checks it, then sends it to PowerEPOS as a stock order in one click.
5. Make stocktakes faster and more accurate
Your team counts and enters quantities, and the system does the maths, including variance and FIFO Cost of Goods. Several staff can count at once, with no calculation errors.
Venues moving from paper typically go from a 4 to 5 hour stocktake to 1 to 2 hours. That makes it easier to count more often, which keeps your numbers sharper.
6. Record wastage as it happens
Ask staff to record waste when it happens and categorise it by reason, such as spoilage, breakage, over-production or staff error. PowerEPOS Stock works out the cost automatically, so you can see where money is going and act on it.
Recording waste also makes teams more mindful of it. Simply tracking it is often enough to bring it down.
7. Use reports to see where margin slips
Variance reports compare what you should have with what you actually have, so over-portioning, waste and short deliveries become easy to spot. Stock movement and GP reports can be viewed by item, category, supplier or location.
For the sales side, Sales Analyst shows which dishes are driving revenue and which are underperforming. Together, they help you decide what to promote, re-price or take off the menu. PowerEPOS Stock also integrates with MYOB, exporting daily sales summaries, payment breakdowns and stock values without manual data entry.
Managing stock across multiple venues
For groups, stock control gets more valuable with every site you add. PowerEPOS Stock supports a central warehouse or kitchen, inter-site transfers with a full audit trail, and consolidated purchasing across the group, while each venue keeps its own stock control and reporting.
Buying for 5, 10 or 20 venues gives you stronger buying power with suppliers. Smarter distribution between locations also means less stock sitting on shelves across the group. Learn more about multi-site POS and franchise POS.
Tips to get the most from your stock system
- Start with your highest-value items. Set up recipes for your best sellers and most expensive ingredients first, so you see results quickly.
- Count on a regular schedule. Weekly or fortnightly stocktakes keep variance small and easy to explain.
- Review GP when supplier prices change. Check your recipe costs after price increases and adjust menu prices or portions where needed.
- Make waste recording part of close. A quick entry at the end of each shift builds the habit and keeps the data accurate.
- Rotate stock first in, first out. Train staff to use older stock before newer deliveries in the cool room, dry store and bar.
Getting started with PowerEPOS Stock
Our Australian implementation team works with you from day one. We import your products, suppliers and opening stock levels, build your recipes with you and run an opening stocktake. Setup typically takes 2 to 4 weeks, depending on your menu and number of locations, and most venues are fully up and running within their first month.
PowerEPOS Stock can be added to the Essentials, Signature or Premium bundle and is charged per site, per month. See current prices on our pricing page.
Frequently asked questions
What is a POS with stock management?
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A POS with stock management combines point of sale and inventory control in one system. Every sale deducts its recipe ingredients automatically, so stock levels, recipe costs and GP stay current without separate stock software or double data entry.
Does PowerEPOS have inventory management?
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Yes. PowerEPOS Stock is the stock and inventory management module built into PowerEPOS. It includes recipe and sub-recipe costing, purchase orders, goods receiving, stocktakes, wastage tracking, reporting and multi-site stock control.
What is the difference between Last Cost and FIFO?
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Last Cost values stock at the most recent price you paid, giving you a fast, current view of costs day to day. FIFO (First In, First Out) values stock at the actual cost of each batch, oldest first, and PowerEPOS Stock applies it when you finalise a stocktake for accurate Cost of Goods.
How long does a stocktake take with PowerEPOS Stock?
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Your team counts and enters quantities, and the system calculates variance and FIFO Cost of Goods. Venues moving from paper typically go from a 4 to 5 hour stocktake to 1 to 2 hours.
How long does it take to set up PowerEPOS Stock?
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Setup typically takes 2 to 4 weeks, depending on your menu and number of locations. Our implementation team imports your products, suppliers and opening stock, builds your recipes with you and trains your staff.
Can PowerEPOS Stock integrate with accounting software?
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Yes. PowerEPOS Stock integrates with MYOB, exporting daily sales summaries, payment breakdowns and stock values without manual data entry.
How much does PowerEPOS Stock cost?
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PowerEPOS Stock is a monthly subscription charged per site, and it can be added to the Essentials, Signature or Premium bundle. See current prices on our pricing page.
See PowerEPOS Stock with your own menu
Whether you run a single café, a busy restaurant, a pub or a multi-site group, PowerEPOS Stock gives you the numbers to price with confidence and protect your profit. PowerEPOS is certified Australian Made, with no transaction fees from Triniteq and a choice of 20+ payment processors.
Talk to our Australian team on 1300 784 666, or book a demo and we'll show you recipe costing, stocktakes and GP reporting in action.
Kym Eaton
