INTRODUCTION

1. This chapter outlines the controls and procedures that are unique to CANEX Special Services.

TYPE OF OUTLETS

2. This category pertains to all miscellaneous business activities that do not belong to one of the other categories. These activities include, but are not limited to, barber shops, beauty shops, theatres, pharmacies, most concession revenues and ATM.

3. Concessions are those miscellaneous business activities that are not operated by CANEX, but are instead operated by a concessionaire. Although in general, concession revenue is reported under Special Services, exceptions are made where the concession forms an integral part of a CANEX outlet (i.e. the outlet incurs expenses in support of the concession).

DEPARTMENTALIZATION

4. Sales shall be departmentalized in accordance with Chapter 41. Concession revenue shall be recorded in GL account 6000, in the appropriate sub-department. For second key parts and related concession descriptions, see the Chart of Accounts in Chapter 13.

INVENTORY ACCOUNTABILITY

5. The method for maintaining and controlling inventories is dependent on the type of special service. CFO & VPI should be consulted when the method to be used is in question. Inventory maintenance and control for concessions is the responsibility of the particular concessionaire.

6. For further information on the various inventory valuation methods see Chapter 25.

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 made in the manner outlined in Chapter 22.

SALES

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

REPORTS AND RETURNS

10. 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 NPFAS may be introduced:

1. Daily Sales Reports and DSR Summaries. 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 as per Chapters 6 and 21;

3. Transfers. Merchandise Requisitions (CF 603) are completed at cost, and 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 are submitted to the NPFAS as per Chapters 6 and 23; and

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

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

INVENTORY SHRINKAGE

12. Shrinkage is not authorized for special services operations.