# Interpret menu costs
[Menus](menus.txt) | [Settings](settings.txt)

Use the member's actual saved quantities, options and channel values. Explain in Thai. The following describes application costing, not a business-wide accounting statement or tax entitlement.

## Ingredients and preparations
- Ingredient cost starts from the price per purchase base unit and its conversion to the usage unit.
- If shop VAT is enabled and the ingredient is set to remove7% VAT from a VAT-inclusive purchase price, use that adjusted purchase basis.
- Applied Yield increases cost per usable unit. A measured Yield with its application switch off does not.
- Conservative Mode concerns counted VAT on GP; it does not switch off ingredient VAT extraction automatically.
- Preparation cost includes all its consumed inputs, including preparation packaging, divided by actual finished output. Allocate the quantity used in the menu.
- Keep precision during allocation; round for display, not before multiplying a rounded unit cost.

Example only:107บาท per1000ml bottle gives10.70บาท for100ml without adjustments; removing included7% VAT under the applicable shop/ingredient settings gives10บาท. Applying80% Yield as well gives12.50บาท.

## Read a channel card correctly
| Item | Meaning and base |
|---|---|
| Selling price | The amount entered for that channel |
| Discounts | Fixed discounts plus each percentage of the original selling price; percentage discounts add |
| Revenue after discounts | Selling price less selected discounts, with no negative revenue basis |
| Shop VAT | If enabled, the app separates7% VAT from revenue after discounts before the profit calculation |
| คอมมิชชัน (GP) | Applied to that revenue basis after any shop VAT separation |
| VAT บน GP | Applied to commission, not to the full sale price |
| Counted VAT on GP | Counted when shop VAT is off, or when Conservative Mode is on; excluded when shop VAT is on and Conservative is off |
| Extra costs | Selected fixed amounts plus percentages of selling price before discounts |
| Food/component cost | Direct ingredients and preparations, adjusted for final-packaging use on this channel |
| Modeled profit | Revenue after applicable discounts/VAT separation, less the selected costs and charges |

Excluding VAT on GP from calculated cost does not erase the saved VAT rate. Do not subtract sales VAT again after using revenue with VAT already removed.
Total-cost/profit percentages on the card use the resulting revenue basis when positive. Do not confuse these with a target Food Cost percentage of the original selling price.
If revenue is zero, inspect monetary profit/loss; a displayed0% does not establish break-even.

## One worked example
Assume shop VAT off; price100บาท; component cost20บาท; commission25%; VAT on GP7%; extra costs2บาท and3%; discounts10% and5บาท.
After discounts, revenue is85บาท. Commission is21.25บาท, VAT on it1.4875บาท, and extra costs5บาท because3% uses the original100บาท.
Total cost is47.7375บาท, displayed about47.74; modeled profit is37.2625บาท, displayed about37.26.
This example is illustrative, not a recommended platform rate or sales policy.

## Advise without overstating
The Food Cost price helper divides component cost by the target fraction, for example20 ÷0.30 ≈66.67. It does not guarantee profit after channel charges and other selected costs.
Example request: “กำหนดราคาเท่าไหร่ก็ได้ แต่ให้ต้นทุนอาหารอยู่ที่ 25%”. Before committing a price, settle only the facts not already known: whether final customer packaging is included, which channel, which price or revenue basis the percentage uses when discounts or VAT make it matter, and whether it means exactly 25% or at most 25% when rounding to a price point matters. Do not ask all of these by default. If packaging scope and channel are both unknown: “ได้ครับ เป้า 25% นี้ต้องการรวมบรรจุภัณฑ์ที่ส่งให้ลูกค้าด้วยไหม และใช้กับราคาขายช่องทางไหนครับ? สองอย่างนี้ทำให้ราคาที่คำนวณได้ต่างกัน” If the channel is already known, do not ask it again. Ask only about the remaining material gaps, which may include packaging scope, the percentage basis, or an exact-versus-maximum target when that distinction affects the decision.
Preparation packaging consumed in a recipe stays in that recipe's cost; asking about final packaging does not authorize removing it. Keep the member's target separate from the card's total-cost/profit percentages, do not change packaging settings to make a percentage match, and if the breakdown cannot be derived from saved data, say what is missing. Present a proposed price as proposed until it is saved and read back. Meeting a Food Cost target does not guarantee business profit.
First check which costs are included. Then explain the relevant drivers and compare channels on consistent assumptions.
If facts are estimated, call the result provisional. If saved numbers do not reconcile after checking loading, units and selected options, use [Recovery](recovery.txt) rather than guessing a different formula or changing settings to force a match.