CFPSA :: Canadian Forces Personnel Support Agency - Corporate

Home > Corporate > Finance and Informatics > Chapter 47 - Vending Operations (Revised 26 Nov. 03)

Chapter 47

Chapter 47

VENDING OPERATIONS

INTRODUCTION

This chapter outlines the controls, procedures and forms that are unique to Vending operations.

CONTROL OF OPERATIONS

All vending and amusement machines located within a base shall be under the control of CANEX with the exception of those machines operated by and on behalf of a mess or other activity within the Base with the approval of the BComd.

TYPE OF OPERATIONS

Fully Serviced Contracted Operation. Under this arrangement the contracted supplying company will provide equipment, product and service and have entitlement to all revenues from the sale of the products. The remuneration to an NPF entity (eg. CANEX) is usually a percentage of monthly sales or a fixed sum per product unit vended. If vending services are provided by this method, revenue is reported as concession revenue under Special Services or if an integral part of an outlet, on the income statement of that outlet; or
Base Operated Vending Service. Under this method the NPF entity (eg. CANEX) is responsible for purchasing and stocking merchandise and collecting cash receipts. The vending machines may be owned by the NPF entity or provided by the supplier of the merchandise. If vending is operated under this system an Income Statement must be prepared under the heading "Vending".

DEPARTMENTALIZATION

INVENTORY ACCOUNTABILITY

Vending machine inventories shall be maintained and controlled by the Retail Accountability Method as follows:

Unit Machines. All merchandise issued to unit machines shall be extended to retail by department (if applicable) for capture in the ABACIS Inventory Report. Receipts collected from the machines less any refunds or spoiled goods will be deducted from the Inventory Report by department. The Inventory Report, therefore, should agree with the retail value of inventory in the unit vending machines and support storage area; and
Metered Machines. Merchandise issued to a metered machine cannot be extended to retail (for practical purposes) and therefore the accountability report consists of balancing the metered sales in dollars and cents (difference between the opening and closing meter readings) from each machine less test vends and refunds to the amount of receipts collected from the machine in the same period of time. Refunds and test vends made at times other than at the time of a cash pick up shall be recorded on a fill slip (Annexes C and D) kept inside the machine so there is a record of test vends and refunds to transpose onto the Vending Cash Collection Sheet.

It is strongly recommended that those bases with large vending operations (20 machines or more) implement, in addition to retail accountability by department, a system of individual machine accountability. This system can be easily introduced by the use of "fill sheets" (Annexes C and D) that isolate the merchandise in each machine. The remaining information required (cash receipts and inventory) is already broken out by machine under the minimum procedures set forth in this Chapter.

SALES

All sales are on a cash basis. The cash from the machines should be cleared a minimum of once per week and at the end of the month from all machines.
Cash shall be counted and recorded for each machine. To simplify this procedure, the use of separate cash bags with machine numbers recorded on the outside of the cash bag is recommended.
When collecting cash from the vending machines the routeman shall record on the fill slip the closing meter readings, test vends, refunds, and spoilage so they can be subsequently recorded on the cash collection sheet.
Each time cash is collected, a Vending Cash Collection Sheet (Annexes A and B) must be prepared in duplicate and totalled. The total cash shall be deposited with the appropriate authority (ie. bank or NPF cashier) and the original copy of the cash collection sheet, the duplicate receipted copy of the bank deposit slip or the CTS and the duly completed DSR shall be forwarded to the NPFAS.
Wherever possible, the cash should not be sorted and counted by the routeman.

TRANSFERS

REPORTS AND RETURNS

The following schedule of reports and returns represents the minimum 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 for the following reports, acceptable to CANEX Management and the NPFAS may be introduced:

Daily Sales Reports (DSRs). To be completed when a cash collection is taken from the machines and forwarded along with the Cash Collection Sheet and receipted deposit slip or the CTS to the NPFAS;
Invoices. Suppliers' invoices (with PO attached) and credit notes are submitted to the NPFAS as per Chapters 6 and 21. Invoices covering merchandise for metered machines will be completed at cost only, whereas invoices covering unit machines will be completed at cost and retail;
Transfers. Merchandise Requisitions (CF 603) are completed when issued or received and submitted to the NPFAS as per Chapters 6 and 22. For merchandise covering metered machines, the CF 603 shall be entered at cost only whereas merchandise for unit machines will be entered at cost and retail;
Retail Price Changes (RPCs). RPCs are prepared for any change in the retail value of the unit machine inventory caused by price advances/declines, damaged goods, etc. The RPCs are submitted to the NPFAS as per Chapters 6 and 23; and
Inventory Report. These reports are generated by ABACIS, by department for all unit vending machines, from the information submitted at subparagraphs a. to d. above and as outlined in Chapter 25.

STOCKTAKINGS

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

INVENTORY SHRINKAGE

As vending inventory is always contained in locked machines, there is no inventory shrinkage allowed for vending operations.