TRANSFERS

INTRODUCTION

1. This chapter outlines the policy and the accounting procedures for the treatment of merchandise transfers.

2. Distribution of merchandise between CANEX and non-CANEX entities are Wholesale Sales and are actioned with an NPF Invoice (DND 1221) in accordance with Chapter 48.

POLICY

3. Merchandise Requisitions (CF 603) Annex A shall be used for the purpose of transfers of merchandise to a private function (see Chapter 38) or from one department to another (or to an expense account):

1. within the same outlet (eg. from Dept 5 to Dept 4 of the same Retail Store);

2. within the same entity (eg. from Dept 1 in the Retail Store to Dept 1 in an ExpressMart - both CANEX outlets);

3. between NPF entities/outlets other than CANEX; and

4. within the CANEX system (eg. from one CANEX detachment to another).

4. Merchandise Requisitions shall not be used for purposes other than those indicated above.

5. Outlets that originate MRs are not to process them through the DSR.

COSTING

6. Transfers shall always be completed at cost. For CANEX, if transfers within the same entity place an undue expense on a transferring outlet, the manager may apply a handling fee to be borne by the receiving outlet. In such cases, the fee is to be shown on form CF 603 and accounted for as Handling Fee Revenue by the transferring outlet and a Handling Fee Expense by the receiving outlet.

CONTROL

7. Forms CF 603 must be controlled in accordance with Chapter 6.

8. The normal distribution for the form CF 603 is as follows:

1. Copy No. 1 (White) is provided to the receiving department or outlet with the goods and then submitted to the NPFAS under cover of the receiving outlet's daily DND 728;

2. Copy No. 2 (Yellow) remains with the issuing department or outlet and then submitted to the NPFAS under cover of the issuing outlet's daily DND 728; and

3. Copy No. 3 (Pink) remains in the book.

NOTE

In the event that a Merchandise Requisition is cancelled, copies 1 and 2 shall be stamped "Cancelled" and submitted to the NPFAS under cover of the issuing outlet's daily DND 728.

TRANSFER PROCESSING

9. Within the same outlet. The manager will prepare the form CF 603 extended at cost and, for retail accountability outlets, also at retail. If the cost is not readily determinable, the normal department gross profit percentage will be used to reduce retail to cost. The manager will ensure that price tags have been adjusted, staple copies 1 and 2 of the form CF 603 together,and submit them to the NPFAS under cover of the issuing outlet's daily DND 728.

10. Within the same entity or between NPF entities/outlets other than CANEX. The manager will prepare the transfer as per paragraph 7 above. If the order is picked up, the manager will ensure that the receiving outlet signs copies 1 and 2 of the form CF 603. If the order is delivered, copies 1 and 2 will go to the receiving outlet with the driver who will ensure that the receiving signatures are obtained and copy 2 returned to the issuing outlet. Copy 1 will remain with the receiving outlet. The manager of the receiving outlet will submit copy 1 to the NPFAS under cover of the outlet's daily DND 728 The manager of the issuing outlet will submit copy 2 to the NPFAS under cover of the outlet's daily DND 728.

11. Within the CANEX system (eg. between CANEX detachments). The procedures in paragraph 8 apply except that, since the issuing and receiving outlets are at different units, the NPFAS at each unit will only receive one copy of the CF 603. The offsetting entry to the CR or DR "Transfers GL", will be:
    "DR Accounts Receivable - CANEX Bases" or
    "CR Accounts Payable - CANEX Bases".

12. Action by the NPFAS. On receipt of the outlets' daily DND 728s and the attached forms CF 603, the NPF clerk will:

1. check the extension of the forms CF 603;

2. match copies 1 and 2 of the form CF 603, see note;

3. for the issuing outlet, check off the CF 603 on the Accountable Document Usage Register;

4. enter the data in a JENGEN or SUIGEN and forward the register to the NPFAS; and

5. the NPFAS will review the register and supporting documentation, post the register and forward the register and the CF 603 to the RAM for action and retention.

NOTE

For transfers between bases, only 1 copy of the CF603 will be available

PAYMENT

13. Under no circumstances is a cheque to be raised for payment of a MR to another base or region. A transfer voucher, as per Chap 9, is to be raised by the RAM to record payment.