CHAPTER 45 GAS BARS

INTRODUCTION


1.   This chapter outlines the procedures and controls which are unique to
     CANEX Gas Bars.


DEPARTMENTALIZATION


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


INVENTORY VALUATION


3.   Inventories shall be maintained and controlled as follows:

     a.  Gasoline uses the cost accountability (current cost) method (closing
         inventory in litres multiplied by most current cost price);

     b.  Oil and Tire/Battery/Accessories (TBA) uses the retail accountability
         method; and

     c.  Propane uses the cost accountability (current cost) method.


4.   For further information on the accounting methods see Chapter 25.


FEDERAL/PROVINCIAL REQUIREMENTS


5.   Federal and Provincial governments have enacted legislation regarding the
     handling of gasoline. Throughout Canada, all gasoline retail operators are required:

     a.  To carry out a daily dipstick measurement of holdings and record the
         results thereof; and

     b.  To carry out a daily water test and record the results thereof.


6.   Accordingly, Gas Bar Managers shall take daily measurements of all tanks
     and record the results on the DSR.


CREDIT SALES


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


WORK ORDERS


8.   A Work Order shall be prepared on each occasion that a vehicle is repaired or
     serviced and such work shall not commence until the work order has been initiated
     and authorized by the customer.


9.   Where only labour (mechanical, towing, booster, etc) or tool and bay rental
     is involved but the amount charged is $2.00 or less the revenue shall be rung in the
     cash register (departmentalized where possible) at the time of sale and the amount
     recorded on an open work order which shall be totalled at the end of the day
     attached to the DSR and submitted with all other work orders to the NPFAO.



10.   The issue of Work Orders shall be effected through the use of accountable
      document control procedures outlined in Chapter 6.


11.   Completed Work Orders shall be recorded in the Accountable Document
      Control Register and filed by serial number. Cancelled forms must be accounted for
      and therefore all copies of cancelled Work Orders shall be returned to the NPFAO.


12.   Work Orders shall be distributed as follows:

     a.  Copy 1 (White) - to customer;

     b.  Copy 2 (Yellow) - attached to the DSR in support of the labour entry
         and forwarded to the NPFAO; and

     c.  Copy 3 (Pink) - retained by the outlet.



DAILY SALES REPORT (DSR)


13.   The submission of DSRs to the NPFAO shall be as outlined in Chapter 18.
      Gas Bar personnel, shall, however, use the Gas Bar DSR form (CF 1347), recording
      thereon the following information:

     a.  The opening and closing cash meter readings for each pump and for
         each type of gasoline (regular, mid grade, premium and diesel) and the
         net sales;

     b.  The opening and closing litre meter readings, unit price and net sales by
         volume for each type of gasoline;

     c.  Dipstick readings and calculation of gasoline retail accountability;

                                 NOTE

     The opening balance in the gasoline accountability record section is the
     previous day's closing inventory (dipstick). The book balance should be
     adjusted monthly by the over/short MTD to arrive at an adjusted opening
     balance for the next period.

     d.  Water test readings;

     e.  The month-to-date sales information; and

     f.  The daily sales totals, non-cash transactions and cash deposit
         information.



14.   The NPFAO shall, upon receipt of the DSR, perform all the necessary
      reconciliation including:

     a.  Verify the calculation of gasoline cash meter readings and gasoline litre
         meter readings;

     b.  Reconcile the cash meter readings with the litre meter readings by
         multiplying the unit price with the pump meter readings;

     c.  Reconcile the cash meter readings with the sales registered by the cash
         register;

     d.  Verify the information recorded in the Accountability Record section;
         and

     e.  Verify the sales information (dollar amounts) with the cash register tape
         submitted and the deposit.

                                 NOTE

     The total cash meter readings take precedence over gasoline cash register
     readings. Accordingly, the difference between meter sales and gasoline
     register sales is added to/deleted from Cash-Over/Short indicating a daily
     Total-Over/Short (which is cumulative and accounted for).


15.   The NPFAO is responsible for the verification of work orders and shall ensure
      that the total of work orders attached to the DSR agree with the total of labour
      sales recorded through the cash register and shown as labour sales on the DSR.


PURCHASES AND TRANSFERS


16.   Purchasing shall be effected in the manner outlined in Chapter 21 and
      paragraph 27 of Chapter 52.


17.   Transfers shall be recorded and actioned in accordance with Chapter 22.


PRICE CHANGES


18.   While RPCs (CF 1343) are not required for gasoline retail price changes, the
      NPFAO must be advised by the Mgr of all changes in selling price by means of a
      new DSR. For example, if the selling price is changed during the normal business
      day, two DSRs shall be submitted, one reflecting the sales up to the time of change
      of the selling price, and one from the time of change until the close of business.
      Meter readings (dollar amounts and litres) are to be taken at the time of the price
      change and are to be submitted to the NPFAO with the DSR.


REPORTS AND RETURNS


19.   The following schedule of reports and returns represents the minimum
      acceptable frequency of reporting. Where the 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 Report. These are completed and forwarded to the NPFAO
         daily;

     b.  Invoice Register. Invoices are to be listed on the Invoice Register daily
         as received and processed except for multi-delivery invoices from the
         same supplier (ie, auto parts) where the invoices are listed on summary
         sheet and totalled weekly and entered on Invoice Register as one
         amount. The Invoice Register is totalled at the end of the week and is
         then forwarded to the NPFAO with attached invoices;

     c.  Work Orders. These are attached to the Sales Report and forwarded to
         the NPFAO daily; and

     d.  Service Stations Transfer and Retail Accountability Reports. Completed
         forms are forwarded, with supporting documentation attached, to the
         NPFAO weekly.


STOCKTAKING


20.   Stocktaking shall be carried out in accordance with the regulations set forth
      in Chapter 26. In the case of gasoline, a stocktaking is the supervised dipstick
      reading.


21.   The NPFAO shall promptly verify the information with the DSR submitted by
      the manager, resolve any differences with the parties involved and, if the confirmed
      month-to-date discrepancy (shortage or overage) by grade of gasoline is more than
      5% of litres sold for the month for that grade, advise the CANEX RM who shall
      initiate action in accordance with Chapter 26.


22.   Shrinkage shall be recorded for TBA department (including oil) at 1 per cent
      of TBA sales. No shrinkage shall be recorded for gasoline sales.


23.   Shortages shall be investigated and reported in accordance with Chapter 26.


24.   Further information concerning inventory shrinkage and shortages is
      contained in Chapter 27.