Merchandising: Import & Landed Cost, Inventory Management Presentation

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Container Store Merchandising Demonstrations

Eddie Williams

Sales Consultant

Oracle Retail

July, 2022

Re-cap Day 1

Merchandising Agenda Day 2

9:00-9:30 Recap/Q&A/Parking Lot from Day 1

9:30-10:45 Procurement Continued: Import & Landed Cost Process

10:45-12:00 Inventory Management

12:00-1:30 Lunch Break

1:30-2:30 Inventory Management Continued: Sales Audit

2:30-3:30 Perpetual Inventory & Stock Ledger

3:30-4:00 Overview of Price Execution (not included in scripted scenarios)

4:00-4:30 Q&A / Wrap Up for Merchandising

Procurement: Import and Landed Cost

Scenario Number Scenario Description

PRI8 Procurement – Procure to pay for import Purchase Orders: TCS has import Purchase Order and has a need to track the import taxes (HTS) other charges. There is a need to capture different import trade terms -e.g., FOB, DDP (domestic duty paid).

PRI15 Procurement – Freight allocation for Domestic Purchase Orders: Approved inbound freight invoice/eInvoices are uploaded or entered into the financial system. The AP specialist manually keys the PO and ASN/LOAD ID in order to match the PO information for freight allocation. Freight allocation can only take place once the invoice entry has been entered and posted in the financial system. After the batch is posted, the AP team notifies the transportation team to begin their freight allocation process.

PRI14 Procurement – Invoice Pre-payments for imports: In case of import POs (with terms like FOB), the invoice comes due before the goods have been received by TCS. In these cases, TCS will make a pre-payment based on the vendor invoice. When the goods are received, the Invoice is matched and interfaced back to the financial system as per the Merchandise process – these have to be manually matched up against the pre-payment before they are finalized or adjusted as required.

• Builds an accurate estimated landed cost

• Opens purchase orders at the point of origin

• Automatically issues a Letter of Credit application and amendment requests

• Classifies merchandise for clearance through Customs

• Tracks merchandise from lading to receipt

• Generates an actual landed cost and cost variance analysis

Merchandising Trade Management

Import Item Purchase Flow

Items Order

Supplier

Transport Customs ALC Obligations

Consolidator / Freight

Forwarder

Shipping

A p

p ro

v e

d O

rd e

Customs Entry

Confirmation

Receive Stock

Non-Merchandise invoice

Stock Ledger

Customs Filing (HRMC)

Obligations

A S

3 rd

P a

rt y

M e

rc h

a n

d is

in g

Freight Invoice

Broker

Import Item Purchase Flow

Items Order Transport Customs ALC Obligations

Consolidator / Freight

Forwarder

Finalised shipping Cleared Customs

Aggregated shipments

Confirmation

Receive Stock

Non-Merchandise invoice

Stock Ledger

Transport Payment

Manage Transport

Manage Trade

Activity

Customs Filing (HRMC)

Matched Obligations

Agreements/ Negotiation

A S

3 rd

P a

rt y

O T

M /

G T

M M

e rc

h a

n d

is in

Freight Invoice (EDI)

Supplier

A p

p ro

v e

d O

rd e

Estimated Landed Cost

• Expenses are tracked at two levels, Country and Zone:

• Country Level Expenses: Origin Country → Lading Port → Discharge Port

• Zone Level Expenses: Discharge Port → Cost Zone of final destination

• Two Expense Types available, Specific and Value:

• Specific – based on quantities (e.g. $1/EA, $1/LB, etc.)

• Value – a percentage of a value (e.g. 10% of cost)

Lading Port in the Country of Sourcing

Discharge Port in the Country of Import

Final Destination or Zone within the Import Country

Assessments (taxes, fees and duties paid to the government of the Import Country)

Zone-level ExpensesCountry-level Expenses

Estimated Landed Cost Components

Cost Components

• Simple Cost Component based upon either the supplier cost or the PO cost of an item

• Computation Value Basis (CVB Component) based upon another expense or group of expenses

Component types

• Expenses are components that can be added to the cost of an item to better reflect the true cost of an item e.g., freight, insurance, processing, etc.

• Assessments are the taxes, fees and duties paid to the government of the importing country. Typically determined by the HTS

• Up Charges associated with internal movement of goods

Cost Profile Defaulting

Purchase Order

• PO Level discounts

• PO specific expenses

Supplier Profile

• Supplier/Country

• Supplier Factory

Item Profile

• Base Cost

• Less item discounts

• Specific expenses

• HTS Duty Assessments

Country Profile

• Zone level

• Country level

• Port to port

Agent/Factories

• Bank

• Agent

• Shipping Line

Let’s take a look – Supplier and Item Import Attributes

Import and Transportation Milestones

Booked Loaded

Sailed

Delivered Finalized

Customs

ALCASN Received

Est. Dep

Act. Dep

Est. Arr

Act. Arr

In Transit

Obligations

Let’s take a look – Import PO, Transportation and Customs Entry

Import and Transportation Milestones

Booked Loaded

Sailed

Delivered Finalized

Customs

ALCASN Received

Obligations

Estimated Landed Cost Vs. Actual Landed

Impact of Estimated Landed Cost Vs. Actual Landed Cost on Cost of Goods Sold (COGS) for items moved between goods receipt and suppliers invoice.

Scenario :

1000 Items ordered from Supplier X for delivery to DC Y base cost $10 + Freight $.25 = ELC $10250

1000 items received at DC Y , WAC calculated at $10.25

100 goods moved to Store Z with WAC at $10.25

Actual freight cost invoiced and are $.3 not $.25

WAC adjustment for 900 on hand in DC Y (original receiving location)

900*$.05 used for WAC adjustment: New WAC $10.3

100 have been moved from original receiving location

100*$.05 Cost variance posted for $5

WAC at store Z remains at $10.25

Let’s take a look – Actual Landed Cost Finalization

• Invoice comes due before the goods have been received by TCS.

• Pre-payment can be managed using Invoice Matching before receipt of goods.

• Upon goods receipt, Invoice Matching will match the invoice and create any discrepancy documents for integration to the finance system.

• Invoices are already marked as ‘payed’ to avoid duplicate payments.

Invoice Pre-payments for Imports

Import Item Purchase Flow

Items Order

Supplier

Transport Customs ALC Obligations

Consolidator / Freight

Forwarder

Shipping

A p

p ro

v e

d O

rd e

Customs Entry

Confirmation

Receive Stock

Non-Merchandise invoice

Stock Ledger

Customs Filing (HRMC)

Obligations

A S

3 rd

P a

rt y

M e

rc h

a n

d is

in g

Freight Invoice

Broker

Procurement: Import and Landed Cost

Scenario Number Scenario Description

✓ PRI8 Procurement – Procure to pay for import Purchase Orders: TCS has import Purchase Order and has a need to track the import taxes (HTS) other charges. There is a need to capture different import trade terms -e.g., FOB, DDP (domestic duty paid).

✓ PRI15 Procurement – Freight allocation for Domestic Purchase Orders: Approved inbound freight invoice/eInvoices are uploaded or entered into the financial system. The AP specialist manually keys the PO and ASN/LOAD ID in order to match the PO information for freight allocation. Freight allocation can only take place once the invoice entry has been entered and posted in the financial system. After the batch is posted, the AP team notifies the transportation team to begin their freight allocation process.

✓ PRI14 Procurement – Invoice Pre-payments for imports: In case of import POs (with terms like FOB), the invoice comes due before the goods have been received by TCS. In these cases, TCS will make a pre-payment based on the vendor invoice. When the goods are received, the Invoice is matched and interfaced back to the financial system as per the Merchandise process – these have to be manually matched up against the pre-payment before they are finalized or adjusted as required.

Inventory Management

Scenario Number Scenario Description

IM1 Inventory Management - Inventory Counts: TCS follows a process of scheduling counts to cover all the departments over a 12-month period. The stock adjustments are authorized after the count is completed. The Stock adjustments are controlled by the finance team on an exception basis.

IM2 Inventory Management – Transfer process: There are cases when the shipment does not reach the store and therefore there is a need to do manual transfer reconciliation-by clearing the in-transit bucket, which is a time-consuming and requires tech involvement.

Accurate Inventory Management

All inventory transactions update central inventory such as:

• Sales and Returns • Customer Orders • PO Receiving and

Adjustments • Inventory Adjustments • Transfers • Return to Vendors • Stock counts

Fulfilment

Transfers

P O

R e

c e

ip t

R T

S a

R e

tu rn

F u

lf il m

e n

Accurate Inventory Management

The current perpetual inventory position therefore holds current inventory count, location and status for the whole business

A single, accurate version of the truth for all analytics and inventory processes

Supplier

Ship / Return

Transportation

In-Transit

Warehouse

Inbound / Outbound

Transportation

In-Transit

Store

Sale / Return

Purchase Orders Transfers

Foundation Data Actuals

Allocation & Replenishment

Merchandising

Store Inventory

Transfers

WMS

Transfers, ASN

Inventory Transactions

Transfers

• Move inventory between locations

• Any combination of Stores & Warehouses

• Optional Transfer Zones provide limits

• Support for Inter-Company Transfers

RTV’s

• Provides a process to support returning merchandise back to a supplier

• Updates Book stock and stock ledger

• Support for Mass Returns

• RTV cost – latest supplier cost, latest PO cost, the WAC or enter a specific cost.

Stock Counts

• Periodic Count to Update On-Hand Units

• Supports Recurring Counts for High-Shortage Areas

Physical Inventory

• update both perpetual inventory and Stock Ledger based upon physical counts

• Shrinkage monetary value and percent is calculated at the subclass-location level

• Supports “Rolling Counts” by Subclass & Locations

• Provides for Freeze, Reconciliation & Adjustments

Inventory Adjustments

• Adjust inventory of items by unit or cases

• Reason codes for each adjustment

• Determines disposition of adjustment (+ / -, available/unavailable)

Let’s take a look – Stock Counts

Transfer Shipment Reconciliation

Manual or automatic closing of transfers

Discrepancies - shipped and received can be manually reconciled Freight Claim –shortages, shipment vs receipt difference is captured in the stock ledger as a loss.

Forced Receipt –shortages, forces receipt quantity as if it was fully received.

Receiving Location – as per system options (next slide).

Shipping Location – as per system options (next slide).

Automatic Closing (recommended)

Automatically closing unshipped or partially shipped transfers based on number of days after first receipt of a transfer/allocation. Separate parameter for each location type combination:

• Store to Store Auto Close

• Warehouse to Store Auto Close,

• Warehouse to Warehouse Auto Close

• Store to Warehouse Auto Close

SETTING OVERAGES SHORTAGES

Receiving Location (RL) n/a No change is made to inventory in the sending or receiving location; however, a stock adjustment is created in the stock ledger at the receiving location for the value of the shortage.

Sending Location (SL) n/a No change is made to inventory in the sending or receiving location; however, transfer in and out are decreased in the stock ledger, and a stock adjustment is created for the sending location for the value of the shortage.

Both Locations (BL) An adjustment is made at the sending location inventory to account for the additional units received. In the stock ledger, additional transfer in and out records are written for the value of the overage.

The inventory that was shipped but not received is adjusted back to the sending location. In the stock ledger, transfer in and out quantities are decreased by the value of the shortage.

Overage/Shortage Store to Store – RL / SL / BL

• System options determine inventory and stock ledger impact when stock orders are automatically closed.

• Different based on the combination of location types and whether short-received or over-received.

Non-Store to Store – RL / SL / BL

SETTING OVERAGES SHORTAGES

Receiving Location (RL) No adjustment is made to on-hand inventory at the sending location. In the stock ledger, a stock adjustment is created at the receiving location for the value of the overage.

No change is made to inventory in the sending or receiving location; however, a stock adjustment is created in the stock ledger at the receiving location for the value of the shortage.

Sending Location (SL) No adjustment is made to on-hand inventory at the sending location. In the stock ledger, a transfer out and stock adjustment are created for the sending location for the value of the overage, and a transfer in record is created for the receiving location.

No change is made to inventory in the sending or receiving location; however, transfer in and out is decreased in the stock ledger, and a stock adjustment is created for the sending location for the value of the shortage.

Both Locations (BL) An inventory adjustment is made at the sending location to account for the additional units received. In the stock ledger, additional transfer in and out records are written for the value of the overage.

The inventory that was shipped but not received is adjusted back to the sending location. In the stock ledger, transfer in and out quantities are decreased by the value of the shortage.

Stock Orders automatically closed and not manually reconciled

• Typically interfaced from store / warehouse inventory management system

• Can be created centrally in Merchandising

• Role-based access control

• Always audited - user / date / time

• Configurable reason codes / dispositions

• Transaction recorded with reason code

• Posted to GL, mapping to reason codes as required

Inventory Adjustments

Let’s take a look – Inventory Adjustments

Inventory Management

Scenario Number Scenario Description

✓ IM1 Inventory Management - Inventory Counts: TCS follows a process of scheduling counts to cover all the departments over a 12-month period. The stock adjustments are authorized after the count is completed. The Stock adjustments are controlled by the finance team on an exception basis.

✓ IM2 Inventory Management – Transfer process: There are cases when the shipment does not reach the store and therefore there is a need to do manual transfer reconciliation-by clearing the in-transit bucket, which is a time-consuming and requires tech involvement.

Inventory Management

Scenario Number Scenario Description

IM3 Inventory Management - Transfers from DC to store location: On a regular basis there are transfers created from DC to Store.

IM4 Inventory management -Transfer from DC-to-DC location: 5-7 times a week, inventory needs to be transferred from one DC to another DC.

IM5 Received but not invoiced (RNI): On a monthly basis, Accounting runs a report to show all POs that are received but not invoiced on a given date. This is used to accrue inventory in the general ledger at month end.

IM6 Inventory Management – Inventory Adjustments & Exceptions: Accounting manually monitors various inventory metrics throughout the month. These examples include adjustment quantities and average cost changes. We monitor these metrics by manually running reports and filtering and sorting.

Transfers

• Transfers created automatically from WH Replenishment

• Transfers originated from external systems

• Manual Requisition

• Administrative Transfers

• Confirmation Transfers

• Return to Vendor Transfers

• Reallocation Transfers

• Book Transfers

• Intercompany Transfers

• Customer Order Transfers

Transfer TypesTransfers are initiated from:

• Can be created manually or automatically Replenishment (warehouse to store transfers)

• Via Store Inventory Operations, to move stock to another store or to request stock from the warehouse;

• Integrated from an external system e.g. A&R

Work Orders Finishers

Transfer zones

Transfer process

Transfer entity

Transfers Transfer Life Cycle

Status Description

Input The transfer has been started, but not completed.

Submitted The transfer has been entered and is pending review. Stock in source location is reserved.

Approved The transfer has been reviewed and has been approved.

In Progress

The transfer has been picked or shipped to the next receiver in the transfer; This status is managed by the operational system (store or warehouse), not centrally.

Deleted The transfer is marked for deletion. It will be deleted by a regularly scheduled batch program.

Closed The transfer has been received at the final location and is complete.

Input Submitted Approved

Closed/ Cancelled

Deleted

Manual / Automatic creation

100% received or cancelled

Integration

Store / Warehouse

External / Automatic creation

In-progress

Let’s take a look – Transfers and Inventory Control Dashboard

Received Not Invoiced

• On receipt, a PO/Shipment is marked as ‘Received’

• Once matched to an invoice a PO/Shipment is marked as ‘Matched’

• Restricts invoice matching from matching a a PO/Shipment more than once.

• If not matched after X days (‘Close Open Receipt Days) then the invoice closed and extracted as an ‘aged receipt’.

• Reporting can be performed on these PO/Shipment status.

Oracle Retail / Financials Integration

Revenue Recognition

Inventory Valuation

Intercompany

Foundation Data Retail Merchandising

General

Ledger

G/L Chart of Accounts

Currency Exchange Rates

Payment & Freight Terms

Suppliers, Supplier Sites, Partners, Addresses

Retail Stock Ledger Stock Valuation Posting to G/L

Retail Merchandising Intercompany Transfer Postings

Retail Sales Audit Daily Sales Cash and Deposits

Wholesale Retail Merchandising Wholesale Orders Accounts

Receivable & Payable

Invoice to Pay

Aged Receipts Never Invoiced

Manually Paid Invoices

Matched and Pre-pay Invoices

Debit/Credit Memos & Credit Notes

Accounts Payable

Rebates

Retail Invoice Match

Inventory Adjustments

• Available to Sell adjustments with configurable reason codes

• Unavailable adjustments with configurable unavailable buckets

• Inventory adjustments are integrated from store and warehouse inventory systems.

• Set of Books, Location, Department, Class, Subclass, Transaction Code, Cost or Retail, a Transaction GL Reference Number. GL Transaction reference numbers provide more granular mapping.

• Interfaced automatically to Finance System on a daily basis – refer stock ledger discussion Wednesday

• Inventory Adjustments subject to Role Based Access Control

• Consumer use tax based on Inventory Adjustment with ‘consumer use’ reason code. Recommend use Vertex (or another tax engine) to process these.

Inventory Adjustments and Weighted Average Cost

• Inventory Adjustments are interfaced automatically to Finance System on a daily basis

• Set of Books, Location, Department, Class, Subclass, Transaction Code, Cost or Retail, a Transaction GL Reference Number. GL Transaction reference numbers provide more granular mapping i.e. by Inv Adj reason code.

• Weighted Average Cost is held at the Transaction Item/location level (e.g. SKU/store)

• Recalculated for the receiving location upon PO receipt.

• Recalculated for the receiving location upon shipping.

• Cost Variance transaction is captured

(existing stock * existing WAC) + (received stock * received cost) (existing stock + received stock)

Weighted Average Cost =

Oracle Retail / Financials Integration

Revenue Recognition

Inventory Valuation

Intercompany

Foundation Data Retail Merchandising

General

Ledger

G/L Chart of Accounts

Currency Exchange Rates

Payment & Freight Terms

Suppliers, Supplier Sites, Partners, Addresses

Retail Stock Ledger Stock Valuation Posting to G/L

Retail Merchandising Intercompany Transfer Postings

Retail Sales Audit Daily Sales Cash and Deposits

Wholesale Retail Merchandising Wholesale Orders Accounts

Receivable & Payable

Invoice to Pay

Aged Receipts Never Invoiced

Manually Paid Invoices

Matched and Pre-pay Invoices

Debit/Credit Memos & Credit Notes

Accounts Payable

Rebates

Retail Invoice Match

Inventory Management

Scenario Number Scenario Description

✓ IM3 Inventory Management - Transfers from DC to store location: On a regular basis there are transfers created from DC to Store.

✓ IM4 Inventory management -Transfer from DC-to-DC location: 5-7 times a week, inventory needs to be transferred from one DC to another DC.

✓ IM5 Received but not invoiced (RNI): On a monthly basis, Accounting runs a report to show all POs that are received but not invoiced on a given date. This is used to accrue inventory in the general ledger at month end.

✓ IM6 Inventory Management – Inventory Adjustments & Exceptions: Accounting manually monitors various inventory metrics throughout the month. These examples include adjustment quantities and average cost changes. We monitor these metrics by manually running reports and filtering and sorting.

Inventory Management

Scenario Number Scenario Description

IM7 Freight allocation process: TCS creates freight vouchers for inbound freight and then allocates them. Today store replenishment truck costs are not included in the SKU landed cost. The need is to have the replenishment cost incorporated in the landed cost so the buyers have visibility on the cost impact to the SKUs.

IM9 Inventory Management – Inventory Adjustments: Each month Accounting manually books out of stock adjustments based the reason code used at the store/DC level.

Estimated Landed Cost + Replenishment Freight

• Expenses are tracked at Country and Zone

• Upcharges account for further freight/handling costs:

• Two Expense Types available, Specific and Value:

• Specific – based on quantities (e.g. $1/EA, $1/LB, etc.)

• Value – a percentage of a value (e.g. 10% of cost)

Lading Port in the Country of Sourcing

Discharge Port in the Country of Import

Final Destination or Zone within the Import Country

Assessments (taxes, fees and duties paid to the government of the Import Country)

Zone-level ExpensesCountry-level Expenses Upcharges

Destination store/warehouse

Estimated Landed Cost + Replenishment Freight

Lading Port in the Country of Sourcing

Discharge Port in the Country of Import

Final Destination or Zone within the Import Country

Assessments (taxes, fees and duties paid to the government of the Import Country)

Zone-level ExpensesCountry-level Expenses Upcharges

Destination store/warehouse

Add an average expense component for replenishment freight e.g. by Cube/weight

Provides buying margin visibility

Utilise upcharges to calculate freight when

stock is transferred

More accurate, however does not provide

visibility for buying.

Inventory Adjustments

• Available to Sell adjustments with configurable reason codes.

• Unavailable adjustments with configurable unavailable buckets.

• Inventory adjustments are integrated from store and warehouse inventory systems.

• Interfaced automatically to Finance System on a daily basis – refer stock ledger discussion Wednesday

• Inventory Adjustments subject to Role Based Access Control

• Consumer use tax based on Inventory Adjustment with ‘consumer use’ reason code. Recommend use Vertex (or another tax engine) to process these.

Oracle Retail / Financials Integration

Revenue Recognition

Inventory Valuation

Intercompany

Foundation Data Retail Merchandising

General

Ledger

G/L Chart of Accounts

Currency Exchange Rates

Payment & Freight Terms

Suppliers, Supplier Sites, Partners, Addresses

Retail Stock Ledger Stock Valuation Posting to G/L

Retail Merchandising Intercompany Transfer Postings

Retail Sales Audit Daily Sales Cash and Deposits

Wholesale Retail Merchandising Wholesale Orders Accounts

Receivable & Payable

Invoice to Pay

Aged Receipts Never Invoiced

Manually Paid Invoices

Matched and Pre-pay Invoices

Debit/Credit Memos & Credit Notes

Accounts Payable

Rebates

Retail Invoice Match

Inventory Management

Scenario Number Scenario Description

✓ IM7 Freight allocation process: TCS creates freight vouchers for inbound freight and then allocates them. Today store replenishment truck costs are not included in the SKU landed cost. The need is to have the replenishment cost incorporated in the landed cost so the buyers have visibility on the cost impact to the SKUs.

✓ IM9 Inventory Management – Inventory Adjustments: Each month Accounting manually books out of stock adjustments based the reason code used at the store/DC level.

Inventory Management

Scenario Number Scenario Description

IM10 Return to Vendor – Stocks are returned to the same vendor from whom they were procured: In TCS stocks are returned mostly to the domestic vendor

IM11 Return to Vendor – Stocks are returned to a different vendor: In the future, there may be a need to return the stocks to a different vendor

Return to Vendor

• Provides a process to support returning merchandise back to a supplier

• Supplier – ‘returns allowed’, ‘RMA required’

• Updates Book stock and stock ledger

• Support for Mass Returns

• RTV cost • latest supplier cost

• latest PO cost

• the WAC

• or enter a specific cost.

• Return merchandise back to a different supplier

• New supplier must be associated with items – mass change download/upload.

Inventory Management

Scenario Number Scenario Description

IM12 Creating a Sales order transaction for a custom closet: In TCS there are few products that are sold as a customized product to the customer. For example, the customer wants to buy a closet. The customer can select multiple items (like the door, shelfs, drawer etc.) and build a custom closet. TCS wants to understand ordering process-pickup-delivery of the product to the customer.

Based on the stock availability the TCS team has three option

1. to create a store order - stock pickup from the store - delivery directly from the store

2. To create a sales order - pick-up from the DC - and Delivery from the DC

3. To create a sales order - place a backorder to the vendor - receive the stock from the vendor - deliver the product to the customer"

Transactions Processing For Sales & InventorySERIES

Whether a direct purchase in store or online, or a return in store or to a warehouse, all transactions will be correctly processed

Consumer Journeys

Multiple consumer purchase and return journeys supported and will be correctly processed including liabilities

This is an example selection

Oracle Confidential – Highly Restricted76

Source and Fulfill from Store for Pickup

Order Sourcing

Merchan -dising

SIM

Fulfillment RequestsOrder

Creation

Fulfill Order

Order Broker

OMS

Manhattan

• Customer details • Items, services, delivery • Payment • Fulfilment

Oracle Confidential – Highly Restricted77

Source and Fulfill from Store for Pickup

Fulfill Order

Merchan -dising

SIM

Order Sourcing

Order Ready for Pickup

Notify Customer

POS

Customer Arrives in

Store

Sales Audit

Pickup Complete

Audited Sales and Order

Completions

Pickup Complete

Update Order Status

Order status check4

End Process

Order Broker

OMS

Manhattan

Selling

The customer visits the store and places an order after a consultation.

The store associate captures the order and accepts payment.

Sarah Customer

Special Order Placed for Delivery & Fitting

Closet Special Order

Fitting: $199

Total: $878

Fixtures: $679

Mei Store Associate

Selling

When the order is capture and paid, an order is created and a liability is captured and posted to the general ledger. The liability will remain until the customer receives their goods.

Corporate Sales Audit

Special Order Placed for delivery & Fitting

Selling

DC or store fulfilment

Fulfilment

Order management facilitates product lookup The routing and

available-to-promise engine will route the customer order to the best location for fulfilment/delivery.

Special Order Placed for delivery & Fitting

Ventilated Shelf

Racking

Wall plugs

End caps

Selling

Delivery & installation

Corporate Sales Audit

Delivery & Fitting

Order management facilitates routing and availability

Once delivered, the liability is reversed.

Sarah Customer

Special Order Placed for delivery & Fitting

Inventory Management

Scenario Number Scenario Description

IM8 Sales Audit Process: This process covers the flow of the sales transactions from the POS system is updated into the Core Merch system and how the sales gets posted in the GL account in finance application. Daily the TCS Finance team does the following check to verify whether all the sales data is same across POS, Core Merch and Finance solution. *Gross Margin % *Finance checks to see the inventory movement cost and cost of sales are matching. This is used as an indicator to check whether the sales are posted correctly *Verify the sales transactions are recorded from all the open stores for the day. *Finance tracks transaction data to check whether Tender data and Sales data are matching and the GL codes are mapped correctly for each transaction and tender.

Selling

Jen Sales Auditor

Sales Audit validates

every transaction. Also,

summarizes sales,

tender totals and

liabilities for the GL

ONLINE/STORE SALES

Records the sales,

returns or other

financial

transactions

STOCK LEDGER Stock Ledger updated to

reflect sales and returns

values, inventory valuation.

Daily/weekly/monthly feed

to GL.

FINANCIALS Consume the details

and update the GL to

reflect the of

sales/returns, tenders,

liabilities etc.

AUDIT

Transactions Processing For Sales & Inventory

All raw transactions will be audited by automated rules to check for errors & inconsistencies

Valid transactions will flow through, invalid transactions will be resolved first

Process: • Raw Transactions • Translated to one format Store POS DirectStandardize

Sales Audit: • Total • Audit • Report Import &

Validation Automated

Totaling

Correction

Export Sales Data & Tax

Automated Auditing

Yes

Does Error Exist?

Release: • Sales + Taxes • Totals • Raw data Stock

Ledger Incentive

Comp. Invoice

Matching General Ledger

Analytics & Reporting

ACH /Bank Reconciliation

/ OMS

Inventory Management

Scenario Number Scenario Description

✓ IM8 Sales Audit Process: This process covers the flow of the sales transactions from the POS system is updated into the Core Merch system and how the sales gets posted in the GL account in finance application. Daily the TCS Finance team does the following check to verify whether all the sales data is same across POS, Core Merch and Finance solution. *Gross Margin % *Finance checks to see the inventory movement cost and cost of sales are matching. This is used as an indicator to check whether the sales are posted correctly *Verify the sales transactions are recorded from all the open stores for the day. *Finance tracks transaction data to check whether Tender data and Sales data are matching and the GL codes are mapped correctly for each transaction and tender.

Merchandising: Import & Landed Cost, Inventory Management Presentation

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