Bar Write-Offs and Spoilage: How to Record and Control

Bar Write-Offs and Spoilage: How to Record and Control

Bar losses are inevitable: something will break, something will spoil, something will be used up in preparation. It is important to record every such situation in the system — otherwise stock diverges from reality, analytics gives wrong data, and it becomes unclear where the gap is.

Types of Write-Offs

Breakage and Loss

Physical damage: a bottle dropped and broken, a can dented beyond saleable condition, packaging torn. Loss: an item has disappeared and nobody knows where or how.

Reason when creating the operation: “Breakage” or “Loss.”

Spoilage and Expired Items

Product has gone bad: expired, improper storage, changed consistency or smell. Applies to milk, juices, baked goods, perishable snacks.

Reason: “Spoilage” or “Expired.”

Preparation Losses

Ingredient usage above the standard recipe: milk spilled during frothing, syrup dripped off target, coffee burnt and had to be remade. This is normal operational loss, but it must be recorded.

Reason: “Production Losses.”

Cancelled Order with Prepared Item

Order was cancelled after the item was already prepared. The item physically exists, the money was refunded — the item must be written off.

Reason: “Order Cancellation.”

How to Process a Write-Off in IZI

Step 1. Confirm the Facts

Before going into the system — make sure the facts are clear: what exactly, how many units, the reason. For large or high-value write-offs — photograph the spoiled item.

Step 2. Open the Write-Off Operation

Go to Warehouse → Write-Off (or Bar → Warehouse → Write-Off).

Step 3. Fill In the Operation

Item — select from the catalog.

Quantity — number of units to write off.

Reason — choose the type from the list: breakage, spoilage, loss, production losses, order cancellation.

Comment — required for any write-off. What exactly happened: “dropped during transfer,” “expired 30 May,” “spilled during coffee preparation.” Without a comment, the write-off looks suspicious on review.

Photo — attach if available, especially for:

• Items above average value in the menu
• Quantities above 3–5 units at a time
• Any loss (no physical evidence)

Step 4. Confirm

Click “Confirm.” Stock decreases immediately. The operation is recorded in history.

If confirmation by a senior staff member is configured — the operation goes for approval. Until confirmed, stock may not update (depends on settings).

Who Approves Write-Offs

IZI has one built-in staff role — Administrator — plus any custom roles the owner creates (for example, a role named “Manager” with write-off approval rights). Control levels are configured through role permissions in IZI.

Recommended setup:

Administrator handles independently:

• 1–2 units of an inexpensive item (water, snacks)
• Obvious breakage with visible damage
• Production losses within normal range

Requires approval from the owner or a custom role with elevated permissions:

• Any write-off of a high-value item
• More than 5 units at a time
• Loss (no physical evidence)
• Total shift write-offs above a set threshold

Configure thresholds in IZI role permissions — this reduces misuse risk without adding unnecessary bureaucracy for small operations.

Stock Count as a Loss Control Tool

Regular stock counts reveal discrepancies that were not documented through write-offs.

How it works:

1. Count physical stock manually
2. Enter the numbers in Warehouse → Stock Count
3. The system shows discrepancies: where the physical count is below the system value — these are unrecorded losses

Discrepancy → investigation: what happened? If there is an explanation (breakage that was not recorded) — create a retrospective write-off. If there is no explanation — unknown-origin losses.

Recommended frequency:

Item Type	Count Frequency
High-turnover drinks	Every shift
Snacks, desserts	Daily
Hot beverage ingredients	Every shift
Low-turnover items	Weekly

More on the shift-close stock count procedure → Bar Shift Procedure: Opening and Closing.

How to Monitor Loss Levels

Metric: Losses as % of Bar Revenue

Losses % = Total Write-Offs for Period / Bar Revenue for Period × 100%

Benchmarks:

• Under 2% — good result
• 2–4% — normal for a bar serving hot beverages
• Above 5% — reason to investigate

View write-off totals in Warehouse → Operations History → filter “Write-Off” for the period. Bar revenue — in the shift report.

Breaking Down by Reason Type

If most write-offs are “breakage,” look for a storage or transportation problem. If “spoilage” — a stock management issue (over-ordering perishables). If “loss” — a possible oversight problem.

Pattern by Shift

Compare loss levels across shifts. If one bartender consistently shows higher losses — training or a disciplinary conversation is needed.

Fiscal Considerations

A bar write-off is a warehouse operation, not a cash transaction. It does not appear in a fiscal receipt and does not directly affect the shift X-report.

If your club operates with an online cash register — a corrective receipt is not required for a stock write-off. A receipt is only needed when refunding money to a customer (cancellation of a paid order). Verify the requirements for your jurisdiction with your accountant.

What’s Next

• Bar Shift Procedure: Opening and Closing — when and how to run stock counts
• Warehouse in IZI: Inventory Management — how warehouse tracking works overall
• Cancelling a Bar Order — how to process a refund when cancelling an order with a prepared item
• Bar Margin: How to Measure and Improve — how losses affect bar profitability