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INTRODUCTION1. It is essential that adequate controls and clearly defined policies and procedures be developed to ensure that the assets of bar operations are properly safeguarded. 2. The BCompt must ensure that the policy and procedures set forth in this chapter are adhered to. In those areas where alternative procedures are outlined in this chapter, the BCompt is responsible to advise the BComd regarding the practicability of one method as opposed to others and the implications, in terms of maintaining control, associated with each method. PURCHASES 3. The procurement, accounting and control of merchandise for resale shall be carried out in accordance with Chapter 9. SALES CONTROL 4. Cash registers are useful control devices and should be utilized in bar operations where it is economically feasible to do so. The decision to introduce this type of equipment rests with the BComd. 5. To assist the BComd in this regard, bases should annually review operations and assess the requirement based on the following guidelines: a. Where monthly sales at an outlet average $2000 or less, cash registers are convenient and useful but not essential; and b. Where average monthly sales at an outlet exceed $2000, cash registers are strongly recommended. 6. Where it is determined that cash registers are to be introduced, only machines having the features required by Chapter 18, paras 8 and 9, may be acquired. 7. Where a cash register is acquired that has a departmental sales capability, sales should be departmentalized as Beer, Liquor, Wines, Tobacco, Meals, Sundries. Items within each departmental category should carry mark-up percentages which do not vary by more than 5 %. 8. Where cash registers are not in use, or where the equipment used does not have the features noted above, sales cannot efficiently be departmentalized and must be reported in total (of all commodities) only. SELLING PRICE LIST 9. Current selling price lists shall be posted in each bar in such a manner that customers can read the prices in effect. RETAIL ACCOUNTABILITY 10. All bars shall be controlled by the retail accountability method. This involves the use of Daily Sales Reports, Invoice and Transfer Registers, Retail Accountability Reports, Retail Price Changes, etc. If the selling price includes GST/PST, the amount recorded on the RAR and stocktakings is the retail price (selling price less GST/PST). 11. All stock shall be taken into accountability at the full unit of issue. For example, a 40 oz bottle of liquor having a unit retail price of $2.00 per oz shall be taken into accountability at a value of (40 x 2.00) $80.00. 12. Reports and Registers shall be submitted once weekly and at each month end. Further particulars regarding the procedures applicable to Retail Accountability are set forth in Chapter 25. BAR MIX 13. To maintain a satisfactory level of control, bar mix (cylinder contained syrup or pop, etc) which is added to drinks is to be classified as free issue/bar expense. The only instances where these items may be controlled as merchandise are: a. Overseas units where duty free liquor is dispensed; or b. Bars where a significant amount of soft drinks are dispensed as drinks and not as bar mix. 14. The procedure for accounting for expense items is as noted hereunder: a. The posted selling price list shall clearly indicate that there is no charge for bar mix; b. The cost price shall be charged directly to the appropriate expense account; and c. These items will be excluded from physical stocktaking.
15. Bottled and canned soft drinks shall be included as
merchandise and accounted for in the normal manner (ie. Retail
Accountability).
TRANSFERS OF ALCOHOLIC BEVERAGES OUTSIDE THE CONFINES OF AN OUTLET
16. If the provincial liquor permit allows the transfer of alcoholic beverages
outside the confines of a particular outlet to another outlet within the same
entity, then such transfers shall be processed in accordance with Chapter 22 as
an internal transfer. When the goods are sold to another Base Fund entity holding
a valid provincial liquor permit, the transaction shall also be treated as a
transfer and processed in accordance with Chapter 22.
NOTE
When a duly licensed entity is charged with the responsibility of storing
alcoholic beverages (and/or other goods) for a particular event, such
goods shall be accounted for separately. Preferably such goods will be
completely segregated from the entity's regular inventory and be under the
absolute control (ie. lock and key) of someone other than the entity
manager; however, if this is not possible, stocktakings must be completed
on both inventories at the same time.
17. Alcoholic beverages shall not be issued or sold to individuals for their
own consumption outside the confines of the entity (ie. off-premises sales)
unless permitted by the provincial laws.
CONTAINERS
18. Refundable containers form part of bar stock and shall be included in
Retail Accountability.
SPOILAGE AND BREAKAGE
19. Periodically merchandise will deteriorate or be lost through breakage.
Unless such circumstances are controlled and recorded, serious loss can be
incurred.
20. Each bar outlet shall maintain a Monthly Spoilage/Breakage Register (Annex B)
recording thereon:
a. Date of occurrence;
b. Description of article;
c. Type of loss (spoilage or breakage);
d. Quantity;
e. Unit retail value;
f. Total retail value;
g. Accumulated retail value to date;
h. Signature of staff member; and
j. Signature of manager.
21. At month-end, the register shall be endorsed by the PMC, Bar Officer or
CANEX Mgr, recorded on a CF 603 entered on the RAR at month-end and forwarded to
the NPFAO.
22. The NPFAO, after verifying the accuracy of the RAR and the supporting
documents shall record the spoilage/breakage in the following manner:
a. Reduce the value of the loss to cost price by applying the previous
month cost multiplier; and
b. Prepare following General Journal entry:
DR Spoilage/Breakage Expense
CR Purchases.
BAR CREDIT SALES
23. The BComd may authorize bar credit sales using :
a. VISA and/or MasterCard in accordance with Chapter 52; or
b. Bar cards.
24. Where authorized, credit sales shall be restricted as shown hereunder:
a. Credit sales to other than ordinary members is discouraged, however,
the BComd may authorize such sales where such a practice is
considered to be warranted;
b. Credit sales are not transportable between messes;
c. Authorization of credit sales must not adversely affect the mess
cash flow or create an overdraft of the mess share of the Base CBA;
and
d. Credit sales shall form part of a member's monthly mess account and
shall be paid in accordance with Chapter 37 and A-AD-262-000/AG-000.
Interim payments to the bartender to reduce the balance outstanding
are not permitted.
25. Where credit sales using bar cards have been authorized by the BComd, the
following procedures apply:
a. All sales shall be recorded (where a cash register is in use, each
sale shall be rung in);
b. Each credit sale shall be recorded on a sales slip (bar card) which
reflects the member's SN, rank, name, and section, the item
purchased, and amount of the sale;
c. The steward shall hold all sales slips until the close of business;
d. The DSR shall be completed to reflect the total sales, identifying
both cash and credit totals separately;
e. A copy of the DSR, supported by the completed sales slips shall be
passed to the Mess Manager prior to the commencement of operations
the following day;
f. The Mess Manager shall confirm that the sales slips equal the amount
shown as credit sales on the DSR and enter the amount for each
member in his records;
g. At month-end, the Mess Manager shall total the charges for each
member and record the amounts as an element of their monthly mess
bills and include this item in the Summary of Mess Charges; and
h. The NPFAO takes the following action:
(1) Upon receipt of the DSR, he shall record the credit sales as
a debit to "Accounts Receivable" and a credit to "Sales" in
the CRJ;
(2) Upon receipt of the Summary of Mess Charges from the Mess
Manager, the total credit sales recorded thereon shall be
compared with that shown in "Accounts Receivable". Where these
amounts differ, the NPFAO shall review the sales slips held by
the Mess Manager to verify his records. In the event that the
Summary of Mess Charges total is correct, the NPFAO shall
correct his accounting records and advise the manager of the
discrepancy using an NPFAO Correction Notice which will adjust
the RAR.
MESS GUESTS
26. Authorized free issues to mess guests shall be recorded on a locally
produced Guest Bar Card and the totals entered on a CF 603 at month-end.
27. These Guest bar cards constitute a cost of doing business and will be
expensed to the entity at their cost value. Therefore, the retail value of the
issues shall be reduced to cost price by applying the cost multiplier. A General
Journal entry will then be actioned crediting Purchases and debiting the
appropriate account under the General Revenue and Expense Statement (ie. CO's
Representational Expense, Entertainment, Miscellaneous General Expense).
STOCKTAKINGS
28. Stocktakings shall be carried out as detailed in Chapter 26.
INVENTORY SHORTAGE/OVERAGE
29. Any inventory shortage or overage shall be processed in accordance with
Chapter 27.
MISCELLANEOUS BAR CONTROLS
30. There are several physical controls which can be introduced to safeguard
the merchandise of entities. While some are common to all types of operations
others are applicable in particular circumstances only.
31. To assist the BComd with the task of properly safeguarding merchandise,
some of the more effective measures are presented in Annex A to this chapter.
Annex A is not all inclusive and where other measures are developed that improve
the level of control they should be introduced.
SPECIAL PROCEDURES
32. In recognition of the unique circumstances existing at some of the smaller
stations, commands have developed procedures for "honour bar" operations at some
locations.
33. The CHQ authority to develop and authorize special procedures for mess
operations at such locations is not restricted by this publication.
34. Service wide procedures, compatible with the needs of isolated and/or small
units will be developed jointly by NDHQ and CHQ personnel and incorporated in
this publication. Pending promulgation of such procedures, existing CHQ
instructions remain in effect.