INTRODUCTION

1. This chapter outlines the controls and procedures that are unique to the CANEX Grocery Store operations.

TYPE OF OUTLETS

2. Outlets comprising this category shall be designated as:

1. Grocery Store. This is an outlet offering for resale a complete range of groceries, fresh meats, produce, and services as normally found in large grocery stores; and

2. ExpressMart. This is an outlet established as a main or secondary grocery outlet normally excluding fresh meat, and produce but offering a convenient and rapid service during extended operating hours. All gasoline is sold by ExpressMarts. Detailed gasoline operation information is contained at Annex A.

DEPARTMENTALIZATION

3. Sales shall be departmentalized in accordance with Chapter 41.

INVENTORY ACCOUNTABILITY

4. The Grocery Outlet inventory shall be maintained and controlled as follows:

1. Grocery Stores use the cost accountability method;

2. ExpressMarts use the retail accountability method; and

3. Gasoline and propane accountability are detailed in Annex A.

PURCHASES

5. Purchases shall be made in the manner outlined in Chapter 21.

6. Outlets that use a PO will use the CF 601. Outlets that receive merchandise without a PO being raised (see Chapter 21, paragraph 7, NOTE) shall ensure that a rubber stamp is used on the invoice and that all information required is completed.

7. The NPFAS shall reconcile individual invoices to the supplier's weekly or monthly statements and advise the outlet manager and the supplier of any discrepancies. The statements are to be annotated as verified and maintained on file until year-end audit has been completed.

8. When authorized by CANEX HQ and CFO, some grocery stores may treat weekly supplier statements as invoices.

TRANSFERS

9. Transfers shall be made in the manner outlined in Chapter 22.

SALES

10. The accounting for sales and the submission of Daily Sales Reports (DSRs) to the NPFAS shall be as outlined in Chapter 18.

11. All credit sales shall be processed as outlined in Chapter 52.

DAILY SALES REPORT (DSR)

12. The submission of DSRs to the NPFAS shall be as outlined in Chapter 18

REPORTS AND RETURNS

13. The following schedule of reports and returns represents the minimum acceptable frequency of reporting. All month-end paperwork must be submitted to NPFAS within two working days following the month-end date. Where volume of transactions is such that more frequent reporting is necessary, a revised schedule, acceptable to the CANEX Management and the NPFAS may be introduced:

1. Daily Sales Reports. These are completed and forwarded to the NPFAS daily as per Chapters 6 and 18;

2. Invoices. Suppliers' invoices (with PO attached) and credit notes are forwarded to the NPFAS are submitted minimum weekly to the NPFAS as per Chapters 6 and 21;

3. Transfers. Merchandise Requisitions (CF 603) are completed at cost, and retail when under retail accountability, when issued or received and submitted to the NPFAS as per Chapters 6 and 22.

4. Retail Price Changes (RPCs). RPCs for ExpressMarts retail accountability departments, are submitted to the NPFAS as per Chapters 6 and 23;

5. Inventory Report. These reports are generated by ABACIS from the information submitted in subparagraphs a. to d. above and as outlined in Chapter 25.

STOCKTAKING

14. Stocktakings shall be carried out in accordance with Chapter 26 and the CANEX Policy and Procedures Manual, Operations 430.

15. For cost controlled departments, the results of supervised stocktakings (grocery, meat, and produce) shall be actioned in the month in which taken and the year-to-date gross profits shall be adjusted to actual.

INVENTORY SHRINKAGE

16. Inventory shrinkage is recorded automatically on the ABACIS Inventory Report as outlined in Chapters 25 and 27.