Marketing Principles
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Calculating Sales Tax
1. Your purchase at Wal-Mart in Phenix City, AL is
$72.00. Sales tax in Phenix City, AL is 8%. What is
the purchase total?
2. Your purchase at Publix in Columbus, GA is
$58.00. Sales tax in Columbus, GA is 7%. What is
the purchase total?
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Calculating Shipping Costs
3. You love shopping at www.oldnavy.com. The
shipping rates are as follows for anywhere in the
U.S.:
•Free shipping for orders over $40
•$5 for an order of $21-40
•$7 for an order $0-20
You purchase the following items on sale:
•Swimsuit for $21.99
•Sandals for $12.50
What is the purchase total?
OBJECTIVES:
•List all types of retails sales transactions
•Process purchases, returns, and exchanges
•Generate and process sales documentation
•Calculate sales tax, discounts, and shipping
charges
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Chunking
We are going to READ and then discuss the key
points of what you read
I have chunked the chapter into 5 chunks:
1.
2.
3.
4.
5.
Types of Retail Sales Transactions P334-339
Sales Tax P339-341
Cash Registers & Their Main Functions P342-345
Making Change P345-347
Purchase Order P348-351
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As a salesperson or
cashier, you will
handle several
types of sales
transactions:
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Cash
Debit card
Credit card
Layaway (will-call)
On-approval
COD
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You will also
handle:
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Returns
Exchanges
Allowances
Sales tax
Shipping charges
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A cash sale is a transaction in which the
customer pays for the purchase with cash or
a check
The simplest sale occurs when the customer
pays in cash
When a customer writes a check, you may
need to verify his/her identity by requesting a
driver’s license
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Sales check – written record of a sales
transaction that includes such info as the
date of the transaction, items purchased,
prices, sales tax, and the total amount due
One copy goes to the customer and one is
retained by the business as a record of the
sale
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Businesses that have
an encrypted, or
coded, PIN pad can
accept debit or credit
card payments
Customers who
choose debit will key
in their private PIN
The bank that issues
the debit card
charges the company
a flat rate per sale
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With a credit card
sale, the fee paid by
the company is
based on the size of
the account
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Layaway (will-call) – removing merchandise
from stick and keeping it in a separate storage
area until the customer pays for it
On-approval sale – an agreement permitting a
customer take merchandise home for further
inspection
Cash-on-delivery (COD) sale – a transaction
that occurs when a customer pays for
merchandise at the time of delivery
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Sales tax – a % fee placed by the government
on the sale of goods/services
A return is merchandise brought back for a
cash refund or a credit
Allowance - a partial return of the sale price
for merchandise that the customer has kept
◦ Example on page 340
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Not all purchases can be bought and carried
home
Some items are too bulky, and others are
purchased via the phone or Internet
Shipping is necessary and adds separate
charges
OBJECTIVES:
•Name the functions of cash registers and pointof-sale (POS) terminals
•Explain the uses for Universal Product Codes (UPC)
•Make change
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All sales must be recorded for accounting and
tax purposes
In most businesses, cash registers can
perform this function
All cash registers perform 3 basic functions:
◦ Recording sales
◦ Storing cash and sales documents
◦ Providing receipts
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Today, most businesses utilize sophisticated
cash registers that can also:
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Figure sales tax
Calculate discounts
Subtract and credit returns
Determine the amount due back to customer
Track inventory
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Sales transaction data are entered into an
electronic cash register in several ways:
◦ Optical scanning
◦ Electronic wand entry
◦ Manual key entry
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Universal Product Code (UPC) – a combination
bar code and number used to identify a
product and manufacturer
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Point-of-sale system – combines a cash
register with a computer, making it possible to
capture info about the transaction, then apply
it to different functions
◦ Example on page 344
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Currency and checks collected in sales
transactions are deposited in the till
Till – the cash drawer of a cash register
It has 10 compartments – five in the front and
5 in the back
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Opening cash fund – a limited amount of
money for the cash register
At the beginning of each business day, the
manager provides this for each register
It consists of coins and currency
This amount is checked at the beginning of the
day and at the end of the day
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A person who handles a large number of cash
transactions may run short of certain
denominations during the business day
You need to have enough so you can make
change throughout the day for your
customers
◦ Making change with a POS system
◦ Making change without a customer display screen
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Safeguard against theft and counterfeiting
◦ See page 347
OBJECTIVES:
•Prepare purchase orders and invoices
•Explain delivery terms
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Purchase order (PO) – a legal contract
between the buyer and the supplier
◦ Example on page 349
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This document lists the quantity, price, and
description of the products ordered, along
with the terms of payment and delivery
Common things typically found on a PO:
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Item #
Quantity
Description
Unit
Unit cost
Total
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Invoices – an itemized list of goods that
includes prices, terms of sales, total, taxes
and fees, and amount due
Part of the selling arrangement negotiated
between a buyer and seller involves delivery
Terms for delivery – the final delivery
arrangement made between the buyer and
seller
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What questions and/or comments do we have
about Chapter 16?