CHAPTER 44 COMBINATION STORES

INTRODUCTION


1.   This chapter outlines the controls and procedures which are unique to CANEX
     Combination Stores.


TYPE OF OUTLETS


2.   This category pertains to two outlets from different categories that have been
     combined into one operation. Possible combinations are as follows:

     b.   Retail Store and ExpressMart; and

     c.   Retail Store and Supermarket.


DEPARTMENTALIZATION


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


INVENTORY ACCOUNTABILITY


4.   The methods for maintaining and controlling inventories is dependent on the
     type of Combination Store, as well as the department, as follows:

     a.   ExpressMart and Gas Bar. D/40 and D/46 shall be controlled by the Cost
          Accountability (current cost) method. All other departments shall be
          controlled by the Retail Accountability method;

     b.   Retail Store and ExpressMart. All departments shall be controlled by the
          Retail Accountability method; and

     c.   Retail Store and Supermarket. D/2 to D/16, D/20, and D/22 shall be
          controlled by the Retail Accountability method. D/1, D/30, D/32 and D/36
          shall be controlled by Cost Accountability (cost multiplier). D/19, D/31,
          D/33, D/34, and D/35 shall be controlled by the Cost Accountability
          (current cost) method. Tobacco products (D/21) may be accounted for
          under Retail Accountability or Cost Accountability (current cost)
          depending upon the major supplier. For example, if the major supplier of
          tobacco products is a grocery wholesaler, then Cost Accountability
          (current cost) would be appropriate.


5.   For further information on the various inventory valuation methods see Chapter


SALES


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


PURCHASES


7.   Procedures for the ordering and receiving of merchandise along with the
     processing of invoices are outlined in Chapter 51.


TRANSFERS


8.   Transfers shall be effected in the manner outlined in Chapter 22.




REPORTS AND RETURNS


9.   The following schedule of reports and returns represents the minimum
     acceptable frequency of reporting. Where volume of transactions is such that more
     frequent reporting is necessary, a revised schedule acceptable to CANEX Management
     and the NPFAO may be introduced:

     a.   Daily Sales Reports and DSR Summaries. These are completed and
          forwarded to the NPFAO daily. For Combination Stores that include a Gas
          Bar, form CF 1347 (Service Station DSR) shall be used in conjunction
          with the standard DSR, form CF 1345. When both forms are used, there
          is no requirement to complete the cash register or deposit sections of
          form CF 1347, as this information will be listed on form CF 1345;

     b.   Invoice Register. Invoices are listed on the Invoice Register daily as
          received. The Invoice Register is totalled at the end of the week then
          forwarded to the NPFAO with attached invoices. Totals from those
          outlets or departments that are controlled by the Retail Accountability
          method are also entered on the applicable RAR;

     c.   Transfer Register. Merchandise Requisitions (CF 603) are entered when
          raised or received. The Transfer Register is totalled at the end of the
          week then forwarded to the NPFAO with attached CF 603s. Totals from
          those outlets or departments that are controlled by the Retail
          Accountability method are also entered on the applicable RAR;

     d.   Retail Price Changes (RPCs). For outlets or departments on Retail
          Accountability, these are held by the store manager or his designate and
          summarized on the weekly RPC Summary Report. The totals by
          department at retail are entered on the RAR for each week;

     e.   NPFAO Correction Notice. For outlets or departments on the Retail
          Accountability method, entries are made on the RAR after receipt of
          notices from the NPFAO and adjustments proved correct. Notices shall
          be actioned within five working days from the date of receipt and the
          correction notices along with the RAR shall be forwarded to the NPFAO
          weekly and at month-end; and

     f.   Retail Accountability Report (RAR). This is prepared in duplicate from the
          information gathered in subparas a. to e. above and as outlined in
          Chapter 25, paras 7 to 10. At the end of the each week, the RAR is
          totalled and the original copy forwarded to the NPFAO.



STOCKTAKING


10.   Stocktakings shall be carried out in accordance with Chapter 26 and the CANEX
      Policy and Procedures Manual, Accounting 203.


INVENTORY SHRINKAGE


11.   Shrinkage calculations for Combination Stores is dependent on the categories
      that make up the outlet and the primary operation. For example, if the outlet consists
      of a combined retail store and supermarket, and the primary operation is the retail
      store, the shrinkage amount would normally be calculated in the amount set out in
      Chapter 27 for Retail Stores. NPFAOs should seek guidance from DNPFS when there
      is uncertainty.