---
title: "RRS — Prelims and period-close reviews"
sidebarTitle: "RRS prelims"
description: "The corp prelim report, the store-level COS % audit report, and the food supplier invoice count gate for Rackson Restaurants (E01)."
icon: "clipboard-check"
---

> **For AI agents:** the complete documentation index is at [llms.txt](/llms.txt). Append `.md` to any page URL for its markdown version.

Three review workpapers — **checks, not posting workpapers.** No journal entry is produced directly from any of them; they are the final gate before financials are distributed.

<Info>
  **Source:** `Rackson_Workpaper_Instructions.docx` — Part I, Prelims & Period-Close Reviews.
</Info>

## Corp prelim report — entity P&L actual vs. prior year/YTD

**Owner:** Jeff / Jonah

Compares the consolidated RRS entity-level P&L (Intacct dimension report, entity **E01**) against the same period last year, and current YTD against last YTD. This is the corporate-level check that total revenue, COGS, and labor flow through correctly — it should reconcile to the sum of all individual BK store side-by-side reports across all districts.

<Steps>
  <Step title="Run the report">
    In Intacct, run **Prelim Report — Actual vs Prior Yr** for entity E01, current period and YTD through period end. Export to Excel as `RRS_Prelim_Report.xlsx`.
  </Step>
  <Step title="Confirm gross revenue ties to RTI">
    Confirm accts **41000** (Food Sales-BK), **41300** (Food Sales-Cinnabon), and **41500** (Non-Food Sales) agree to the RTI sales journal totals used elsewhere in close. **Any variance indicates an unposted sales journal entry or a timing difference.**
  </Step>
  <Step title="Review cost of sales by category">
    As a % of net revenue: Food, Sand Prep/Salad, Other Food, Condiments, Soda, Shakes & Drinks, Alcoholic Beverages, Paper, Cups & Lids, Misc Paper, Shortening, Promos, Other — net of Rebate Income.

    Compare current period COS % to the same period last year, and current YTD to last YTD.

    <Warning>
      Flag any category with a swing greater than approximately **150–200 basis points** for investigation before finals.
    </Warning>
  </Step>
  <Step title="Review total labor">
    As a % of net revenue. Confirm it ties to the labor reports pulled from the payroll processor for the period.
  </Step>
  <Step title="Sanity-check profit after prime costs">
    Net Revenue less COS less Labor. A large unexplained swing should be traced to the underlying **store-level side-by-side reports** (by district, e.g. `DHCR01P01`/`P02`-style reports) before the close is finalized.
  </Step>
</Steps>

**Files:** `RRS_P5_2026_Corp_Prelim_Reports.xlsx`

<Note>
  This report is a **check, not a posting workpaper.** Use it as the final gate before financials are distributed to Mike and ownership.
</Note>

## COS % audit report — store-level outlier review

**Owner:** Jeff / Jonah

Compares store-level COS % and ending inventory dollars (current versus prior period) for **every open BK store across all districts** — approximately 145 store rows — flagging any store with an unusual basis-point swing or inventory dollar change. This is the primary tool for catching **inventory count errors or miscoding** before they hit the financials.

<Steps>
  <Step title="Run the report">
    In Intacct, run the **COS % Audit Report** for entity E01 as of period end. It shows, by store: current and prior period sales, current and prior period COS $, current and prior period COS %, the basis-point change, and ending inventory $ for both periods.
  </Step>
  <Step title="Confirm inventory is posted first">
    <Warning>
      Run this **only after** the [13000 BK Ending Inventory](/internal/customers/rackson/workpapers/rrs-inventory-and-prepaids) workpaper has been posted — the report's current period COS % will not be accurate until the inventory adjustment is in the GL.
    </Warning>
  </Step>
  <Step title="Review the BPS Chg column for every store">
    A swing greater than approximately **300–400 basis points** in either direction is a strong signal of a **miscount, a miscoded invoice, or a missed inventory transfer** between stores. Investigate these first.

    <Note>
      Stores temporarily closed for **fire, flood, or remodel** will show extreme distorted percentages — very low sales against normal-sized invoices. These are **expected outliers, not errors**, and should be flagged as closed in the workpaper rather than investigated as miscounts.
    </Note>
  </Step>
  <Step title="Read inventory $ change alongside BPS">
    A store with a large inventory dollar increase and a falling COS % — or the reverse — often points to a **count error** rather than a true cost change. Cross-reference the 13000 workpaper for that store.
  </Step>
  <Step title="Resolve each flagged store">
    Contact the area coach or store manager to confirm the count, then determine whether a correcting entry is needed before finals. **Document the explanation for any outlier that is not corrected** — known promotional activity, commodity cost spike, store closure.
  </Step>
  <Step title="Reconcile to the corp prelim">
    Confirm the **Total Districts — all** row reconciles to the Total Cost of Sales line on the Corp Prelim Report for the same period. The two reports pull from the same GL data and **should always agree**.
  </Step>
  <Step title="Reconcile to the prime cost master file">
    Ensure consistency with the BK Prime Costs Master File.

    <Warning>
      **RTI includes non-food sales**, which must be backed out of sales from Intacct before the two will agree.
    </Warning>
  </Step>
</Steps>

**Files:** `RRS_P5_2026_COS___Audit_Report.xlsx` · `P5_2026_AC_Store_Prelim_Reports_-_DHCR01P01.pdf` · `…DHCR01P02.pdf` · `…BKCR04P02.pdf`

<Note>
  The screenshot walkthrough for generating, filtering, and filing this report is on [COS % audit report](/internal/customers/rackson/processes/cos-audit-report).
</Note>

## Food supplier invoice count — missing/extra bill detection

**Owner:** Jeff / Jonah

Counts the number of food supplier (**Sysco / US Foods**) bills posted per store for the period and flags any store whose invoice count or total dollar amount deviates from the expected pattern by more than **$600** — an early warning of a missing, duplicated, or misapplied delivery invoice before COGS is finalized.

<Warning>
  **This is a gating step. Prelims do not go out without it.**
</Warning>

<Steps>
  <Step title="Pull the AP bill listing">
    Run the Intacct AP bill listing for the food supplier vendor(s) for the period, grouped by store/location. Paste into the **Locations for Review** tab, replacing prior period data.
  </Step>
  <Step title="Read the flags">
    The workbook groups bills by store and flags each as:

    | Flag | Meaning |
    |---|---|
    | **OKAY** | Matches the expected weekly delivery cadence — typically **8 bills for a 4-week period** |
    | **Potential ADJ** | An invoice with an absolute value greater than **$600** that does not fit the established pattern for that store |
  </Step>
  <Step title="Review stores with fewer than 8 invoices">
    Or fewer than whatever that store's normal delivery count is. This typically means a delivery invoice **has not yet been received or was misposted to a different location.**
  </Step>
  <Step title="Handle temporarily closed stores">
    For stores closed for fire, flood, or remodel, note the closure reason in the comments column rather than treating the reduced invoice count as an error. Cross-reference the [88250 Closed Store Expense Reclass](/internal/customers/rackson/workpapers/rrs-delivery-maintenance-reporting) for the same location.
  </Step>
  <Step title="Trace stores with 9+ records or a flagged amount">
    Confirm the extra or unusual bill was not double-posted, misdated into the wrong period, or coded to the wrong store. Correct the AP coding before the period closes.
  </Step>
  <Step title="Cross-reference the COS audit">
    <Note>
      A missing or extra food invoice is **one of the most common root causes of a COS % outlier** — checking this report first often resolves the COS audit finding without further investigation.
    </Note>
  </Step>
  <Step title="Check Flowers">
    Review the last invoice date in Intacct for **Flowers** to ensure the most recent invoice is posted — typically within a few days prior to prelims.
  </Step>
</Steps>

**Files:** `RRS_P5_2026_Food_Supplier_Invoice_Count.xlsx`

<Note>
  The **BK Prime Costs Master File** and the weekly payroll/labor GL detail reports pulled from the payroll processor are also part of the final prelim review — both feed directly into the Corp Prelim Report and COS % Audit Report and should be reconciled before this section is marked complete.
</Note>

## Related

- [P&L review process](/internal/customers/rackson/review-process/pl-review) — side-by-side versus trend, and the AI-assisted pass
- [Running and delivering prelim reports](/internal/customers/rackson/processes/running-prelim-reports) — the mechanics of producing and sending the package
- [COS % audit report](/internal/customers/rackson/processes/cos-audit-report) — the screenshot walkthrough
- [RCY prelims](/internal/customers/rackson/workpapers/rcy-prelims) — the Dave's-side equivalents