Within 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 use 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 reestablished 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.
- 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/S.Usage form.
- Subtracting the retail value of merchandise returned to vendors.
Customers can track changing total inventory value in the Inventory Progress report.
Ingredient Method of Accounting
This method is to 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 cost value and not retail value. They will not be extended to a retail value as are other store products. 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.
Example
User Purchased:
5 lb. Ham @ $1.59 lb$ 7.95
5 lb. Turkey @ $2.29 lb$11.45
5 lb. American Cheese @ $1.67 lb$ 8.35
Total $27.75
Merchandise Addition:
Cost = $27.75
Retail = $0
Sell:
2 lb. Ham @ $3.29 lb$ 6.58
3 lb. Turkey @ $4.39 lb.$13.17
5 Deli Sandwiches @ $2.29$11.45
Total $31.20
Merchandise Addition:
Cost = $0
Retail = $31.20
