Sales, Gasoline, and Inventory Accounts

Income, Cost of Goods Sold and Expense accounts should be set up for the entire company. To build Profit and Loss statements by station and/or departments, the system will use classes with each transaction related to these accounts.

For Sales, the system will set income accounts:

• 9100 Sales-Gasoline
• 9101 Sales-Kerosene
• 9102 Sales-Diesel
• 9103 Sales-Store
  

For purchases - Cost of Goods Sold accounts:

• 9200 Purchases-Gasoline
• 9201 Purchases-Kerosene
• 9202 Purchases-Diesel
• 9203 Purchases-Store
  

For inventory – the Other Current Asset account called '4000 Inventory' and it is sub-account called '4000.1 Gasoline Inventory' are set up. Because this is an asset account, the system will open one for each station.

Since we cannot track inventory by retail in QuickBooks, the system will post beginning and ending inventory for each day by adding a general entry from the Cost of Goods account to the Inventory account and back. The entry has to be recorded with a particular station name as a class.

Gasoline

For day to day operation such as projection reports and fuel margin reports, CStoreOffice® uses Pool margin—the weighted average of all gasoline products.

For accounting purposes, gasoline inventories are maintained using Cost Accounting Method—a method by which a business can maintain and account for the value of its inventory. With this method, inventory is kept at its direct cost. As items are added to the inventory, the value of the inventory rises by an amount equal to the cost of the additions. As items are removed from inventory by sales, the value of the inventory falls by an amount equal to the cost of the items sold.

Merchandise

In CStoreOffice®, store merchandise is maintained by Retail Accounting Method—a method by which a business can maintain and account for the value of its inventory. In the Retail Accounting Method, inventory is kept at its retail value. As items are added to inventory, they are marked up to reflect their retail price and the value of the inventory increases by that amount. As items are sold, the value of the inventory falls by an amount equal to the retail price of the items sold.

Inventory Record Maintenance

CStoreOffice® will establish and maintain a retail book inventory (except where current business practices demand that a department uses Ingredient Method of Accounting, such as food service, deli, hot drinks) which shall reflect the value at retail of all merchandise for sale from the store, including, but not limited to, bottle deposits, merchandise for sale in vending units, and consigned merchandise. The value at retail of purchases shall be based on a customer's current retail selling prices taken from the Price Book. The retail book inventory shall be determined initially by a physical inventory of each item in the opening inventory of the store, with the exception of store supplies, at the current retail selling price. The value of the retail book inventory shall be re-established by periodic physical inventories taken as described in Physical Inventory section of this manual.

The amount of inventory determined by a physical inventory shall replace the book inventory which has been calculated since the last physical inventory. The difference between the two inventory totals shall be called an adjustment and appears in a number of inventory reports included Inventory progress report and others. This adjustment will not be posted to Profit and Loss report as an item since the book inventory already adjusted for this difference.

The book inventory shall be adjusted by the following normal business activities between physical inventories:

• Adding the value at retail of all merchandise items brought into the store for resale. You can enter invoices by total retail/cost and/or by category in the Vendors > Bills > Non itemized Purchases form or at the item level in the Vendors > Bills >Itemized Invoices form.
• Subtracting the value at retail of all merchandise items sold from the store.  The system receives this data automatically from the cash register(s). Sales may be adjusted or entered manually by customer thru the Data Entry > Store > Store Sales form.
• Adding or subtracting, as the case may be, the value of all retail selling price increases or decreases on merchandise available for sale from the store. Customers can adjust prices thru the Price Book and enter Price changes into the Data Entry > Store > Price Change form or thru Price Change tickets. The purpose of the Price Change form is to keep track of item price changes in the store and store inventory adjustments. Price changes may also be, in many cases, generated by CStoreOffice® every time a promotional item is sold if promotions are set by customer through the Price Book > Promotion form.
• Subtracting the retail value of any broken or spoiled merchandise and merchandise employed for store use. Customer can enter spoilage/breakage through the Data Entry > Store > Spoilage form.
• Subtracting the retail value of merchandise returned to vendors. This may be done by entering a “credit” invoice in the Vendors > Bills > Non itemized Purchases form or for item level entry in the Vendors > Bills >Itemized Invoices form.

Customers can track changing total inventory value in the Inventory Progress report.

Ingredient Method of Accounting

This method may be used for the following product categories:

• Chicken
• Deli
• Food Service
• Fresh Baked Pizza
• Convection Oven Products
• Fountain Drink - Cold
• Hot Drinks
• FCB

Under this method, merchandise additions are made at the cost value, not the retail value. They will not be extended to a retail value as are other store products. The retail value is added to the retail book inventory via a price change after the item is sold. The retail value will be determined by the related department sales found on the closing register tape.