Recovery
 Pull down top stock
o Check all boxes for what is inside
o Refill shelves to reasonable capacity – slide bin tags if necessary
o Place leftover stock on top shelves
o Update counts
 Pull out back room stock
o Check stock room for additional stock
o Refill shelves to reasonable capacity – slide bin tags if necessary
o Place leftover stock either on top shelves or stock room
o Update counts
 Face and front
o Pull items to front of shelves or pegs
o Items should be in proper location, replenished, and fronted
 Clean and dust
 Remove empty pegs and bins
 Remove boxes on floors
 Check end caps
 Bin tags
o All items should have bin tags
o No hand written bin tags allowed
o Bin tags should be placed on plastic backing and on the left side of
bins/shelf spaces of items
o Bin Tag Colors:
 Yellow – Standard Color Tag
 Green – Never Out Listing
 Red – Do Not Reorder Z Flag Or Close-Out Y Flag
 Blue – Impulse
 Signs
o Signage Colors:
 Yellow – Regular Signage In Aisles – Never Outs
 Pink – Main Aisle, End Caps, Displays, Sidewalk
 Lime – Circular/Flyer Sales, Additional Signs Needed
 Red – Z Flag And Y Flag Close-Outs
 Orange – In Store Specials
o Customers should never have to ask how much an item costs.
 Counts
o The best way to always have items in stock is to have accurate inventory
counts
o Update incorrect counts as often as possible
o Short card – insist all staff to use it
o Frequent zero, negative, and cycle counts
 Close outs
o Let your manager know when you have items that need to be reduced in
price
 Overstock


Z Flag Items
Permission To Z Flag
Inventory Count Accuracy
 Maintaining count accuracy is ensuring that your in-store computer system always
has the correct quantity on hand for every item. Having correct counts is critical
to your system’s ability to generate an order. The system uses yours sales history
and the weeks’ supply value you select to determine each item’s reorder point. It
is compares that reorder point to the quantity on hand and the quantity on order to
determine if you need to reorder more. Following the procedures to keep your
quantity on hand and quantity on order figures correct is necessary for the
computer to suggest an accurate order.
 The actions of every person in your store, even customers, can affect the accuracy
of your on-hand quantities. All associates must be fully trained on your store
procedures including cycle counting, receiving, point-of-sale, back-office, and
customer service.
 For example, items being returned to the store are a frequent cause of incorrect
counts. If the item is in sellable condition, it must be handled as a regular return.
If it is not sellable, it must be handled as a defective return or defective exchange.
A defective exchange is when a customer wants an identical item to replace the
defective item. A defective return is when the customer wants to return the
defective item, but not replace it with the same item.
Return Scenarios
Refund Reason
Return
Defective Return
Defective Exchange
Effect on QOH
Increase
None
Decrease
Effect on Sales $
Decrease
Decrease
None
Cycle Counts
 Cycle counting is a method of performing an inventory audit by checking product
quantity on a continuous schedule. It is important to count every item in your
store at least twice a year. To accomplish this, the store is divided into four-foot
sections, with each section defined by a unique location code. These locations are
then combined into a number of groups, and the items in each group are counted
each. Cycle counts are performed weekly with two sections being reviewed each
time.
 The key purpose of cycle counting is to identify items with an incorrect quantity
on hand in the computer, so this issue can be researched, identified, and
eliminated. Some of the other reasons cycle counting is important:
o Improves accuracy of quantity on hand
o Necessary to generate accurate computer assisted orders
o Minimizes lost sales
o Improves customer service
o Improves accuracy of management reporting and inventory valuation
o Allows timely detection and correction of errors

o Identifies high-shrinkage items
o Replacement of items in proper location codes
o Reduces year-end inventory write-offs
o Reduces the need for a physical inventory count of all products at one time
Before cycle counts can be performed, recovery of the week’s selected sections
must be completed. Those assigned to perform the cycle counts for the week,
obtain the assigned sections from the intranet (instructions below). Once the
listing is retrieved, the cycle counts are performed. The sections are either
manually counted and logged onto a cycle count sheet (Reference Binder) or
counted with the RF unit. Regardless of how the cycle counts are performed,
manually or electronically, the counts must be verified by another person to
ensure accurate counts. If there are shortages in quantities of the items, an attempt
must be made to find the missing items. Usually these items are misplaced in
different sections or placed in the claims box where the special orders and
rainchecks are stored. If the items are not found, the necessary revisions are made.
Once this is completed, the counts are logged into the Eagle Browser in PIP. If the
counts were counted with the RF unit, then the counts are already recorded and
sent to PIP. (The sections must be logged in individually. They cannot coincide
with each other.) The reports containing the updated counts are printed through
RPI. After this, the counts are posted on the intranet (instructions below) and a
copy of each report is stored in the cycle counts binder.
Accessing Cycle Count Sections
 Log on to the MVL intranet site.
 Click on the Operations tab.
 Click on the Cycle Count Program link under Useful Links.
 Click on the Calendar link.
 Select store.
Posting Cycle Count Results On Intranet
 Log on to the MVL intranet site.
 Click on the Operations tab.
 Click on the Cycle Count Program link under Useful Links.
 Click on the Cycle Count Results link.
 Find store and click on the down arrow of link.
 Click Edit Item.
 Enter in results.
Negative Counts
 An automatically generated list is checked weekly for items in the store that have
a negative quantity on hand (QOH). The count can be done throughout the week,
but should be completed before the RSO (Suggest Order) date. Negative counts
should not be done on freight and receiving days. The report can be accessed at
anytime on the Eagle Browser under the title of RIS.
 Before negative counts can be done, recovery must be performed. This includes
checking to make sure none of the items are in receiving or in the claims box
where the special orders and rainchecks are stored. If items are found, their counts
are recorded. After this is completed, the negative counts are performed. The
items with negative quantities on hand are located and counted. The quantities of
the items are changed to their correct counts (instructions below). A report of
changes is printed and stored into the negative and zero counts binder.
Changing Counts & Running Report
 Log on to the Eagle Browser.
 Type in PIP in the Launch field.
 Click on QPIP F3.
 Enter in the SKU number and the correct quantity on hand. Click OK. Repeat this
for all of the SKUs.
 Close Program.
 Enter in RPI in the Launch field in the Eagle Brower. Select print settings and
then print the report (spool and print).
Zero Counts
 The counts are done to ensure that items with quantity on hand (QOH) of zero are
recorded as zero so they can be reordered. The counts can be done throughout the
week but not on freight and receiving days.
 Before zero counts can be done, store recovery must be performed. This is done to
ensure that the inventory counts in the database are accurate so that the correct
amount will be ordered. If the counts are off, then the store will have a surplus/
shortage of supply of the respective items.
 After recovery is completed, zero count sheets are used to record the SKUs and
section numbers of the items with a supply count of zero. These SKUs are entered
into the Eagle Browser in the PIP page. Once this is done, the reports are printed
through the RPI page. Recounts are done after this as a confirmation measure to
verify accurate inventory counts. Recounts employ the reports produced from
RPI.
Recording Zeroes
 RF Unit
o Scan the SKU from the bin tags of the zero items.
 If the SKU does not scan, manually enter the SKU.
o Enter 0 into the Count field. Press FCN and then 3.
 Manual Count
o Make a record of all the SKUs that are zero.
o In the Eagle Browser, type in PIP in the Launch field.
o Click on QPIP F3.
o Enter in the SKU number and the correct quantity on hand. Click OK.
Repeat this for all of the SKUs.
o Enter in RPI in the Launch field in the Eagle Brower. Select print settings
and then print the report (spool and print).
Staple Items
 Items that the store should always have in stock. These are items that should
always be available to customers.
Promotional Items
 Items that are being promoted or put on sale. These items usually are staple,
seasonal, and/ or new items. They are promoted through store events and
advertisements as listed in the sales plans and promotional schedules.
 In/out items are items bought specifically for the purpose of quick sales through
promotions. These items are temporarily in stock and usually are not repurchased
unless the sales are immense and the demands are high.
ACE Hardware Sale Plan Preparation & Execution
A. Ad layouts available in the ACE Monthly Promotion Guide mailed three months
prior to the ad month. Ad layout also available on ACENET.
a. Print Desert Region layout from ACENET.
B. Using the bulletin listing (sent from Hilo office), review each item’s sale plan
sales history and determine quantity to order.
a. View item on Eagle inventory management (IMU)
i. From the History tab, view promo units sold.
b. After determining sale quantity to order:
i. Enter quantity order on bulletin listing spreadsheet.
ii. Write order quantity on ad layout.
c. Using the bulletin listing notes column, enter notes and necessary action
items needed one month prior to the ad month.
i. Replacement items needing to be ordered from the RSC.
ii. Items not ordered on bulletin that may need to be ordered from the
RSC.
iii. Items repeating on sale from the previous month.
iv. On hand amount intending to be used for the sale plan.
v. Item has a Z Flag.
vi. Item is new with no history.
vii. Similar ACE item’s sale history used.
viii. Etc.
C. Print the Sale Month’s Sale Item (MIP) file on the first week of the prior month of
the ad.
a. Using the MIP listing, perform a physical count of all (sale) items on the
list and update corrected count.
D. Upon receipt of, immediately open the sign kit and store copies of the ad.
a. Check all sale signs.
i. Compare all price signs and posters with ad for accuracy.
1. Sign kit should include two signs for each item and posters
for best buys.
ii. Determine how signs will be used.
1. Side counter.
2. End counter.
3. Bulk display.
4. Register impulse.
iii. Determine if additional signs are needed.
1. Merchandise displayed on an end counter will also need a
sign at the staple home.
b. Schedule a portion of the monthly store meeting to review and discuss
upcoming ad.
i. Hand out store copies of the ad to all employees and have a
discussion of the upcoming sale plan.
1. Review and discuss the Best Buys.
2. Review and discuss special marketing items.
a. Contests.
b. Special giveaways.
c. Children Miracle Network charity “specials”.
d. HHC.
e. Rebate offers.
f. Etc.
ii. Review and discuss how the signs, posters, and banners will be
utilized.
1. When and where posters will be put up and taken down.
2. When and where the banner will be put up and taken down.
3. When and where the signs will be put up and taken down.
E. Merchandising sale items for the sale plan.
a. Determine which items will be displayed on the end counter.
i. Determine what related staple items will be displayed along with
the sale items.
ii. Print signs showing regular retails.
b. Determine which items will be bulk displayed.
i. Print signs showing regular retails.
c. Determine which items will be only available at the staple home.
d. Determine and make a list of staple items that will be used to fill end
counters as sale items are sold out or down.
F. Seven days prior to the sale start date.
a. Print a MIP of the sale id.
i. Using the list, identify items that you have a quantity on hand of
zero.
ii. Items with zero on hand, call for store transfers from other stores
on the island.
iii. Update your list of items not available for the sale plan.
1. Post the list of items not available.
2. Provide the list to every cashier.
3. Prepare rainchecks.
4. Prepare equal or better value list of substitutes.
G. Night before the sale start date.
a. Neatly hang all sale signs and posters.
b. All signs “returned” should be for items that will not be available for the
start of the sale plan due to zero on hand.
i. Item signs should be cross-referenced to your list of items not
available.
H. During sale week, monitor sale items displayed on the end counters and bulk
displayed.
a. Prepare all sales clerks with blank raincheck forms to issue to customers
for any sale item out of stock.
i. Issuing rainchecks on the sales floor will minimize cashiers having
to write rainchecks at the point of sale.
b. All sale end counters and bulk displays should be kept neat, well signed,
and full with stock.
c. Merge (related) sale items together to make full end counters when stock
is low.
d. End counters should be kept full, replacing sold out sale merchandise with
designated staple items.
e. Bulk displays should be taken down or replaced with designated staple
items.
I. Night sale ends.
a. Print a MIP for the sale (MIP will not be available to print on the day after
the sale ends).
i. A SER should be printed for all sale ids at the end of the sale
week…including best buys and super coupons, which may end on
the last day of the month.
ii. Another SER should be printed for only sale ids…best buys and
super coupon items that end on the last day of the month…at the
end of the last day of the month.
J. Day after sale ends.
a. Tally rainchecks issued (so far).
i. Record number of rainchecks issued per item on the MIP.
Sale Plan (Ben Franklin Crafts)
 The Advertising and Merchandising departments get together and assemble a
promotional schedule of when and where a particular sale or event is going to take
place and which items will be promoted or put on sale at the time. These items
along with their old and new pricings are embedded on lists, each with a distinct
promotional code. The buyers review the historical sales data on these items and
offer their suggested quantity to purchase of each item to prevent a shortage or an
excess of these items during the event. Ultimately, the store managers decide the
quantities of purchase. After the event, management decides whether or not to
continue promoting certain items. This is usually based on whether there is an
excess or a shortage of a particular item or if there is a high or low demand for the
item. These sale plans are applied for every store.
Accessing Advertising Schedule (ACE Hardware)
 Log on to the MVL intranet site.
 Click on the Advertising tab.
 Click on the Store Documents link.
Accessing Promotional Schedule (Ben Franklin Crafts)
 Log on to the MVL intranet site.
 Click on the Merchandising tab.
 Click on the Merch Documents link.
 Click on the Promotional (Sales Plan) folder.
 Click on the Craft folder.
Reviewing Promotion Items List By Promotional Codes
 Log on to the Eagle Hawaii Network.
o Enter user name and password.
 Enter MIP in the Launch dialog box.
 Enter the promo code into the Type dialog box or scroll down in this box to view
a list of the promo codes.
 This page displays lists of current and upcoming items that are being or will be
promoted or on sale. To view past promotion items:
o Click on the Miscellaneous icon.
o Click on the View Promo History button.
o Click on the Lookup icon. This allows you to choose your desired lookup
setting.
o Pick your desired setting and then either enter the SKU number in the
SKU dialog box or the promotional code in the Promo Name dialog box.
Seasonal Items
 Items that are only sold in their particular season. In this context, season is taken
to mean a particular time of the year such as Christmas, Summer, etc. Thus,
Christmas items would not be sold during the Summer season.
Accessing Seasonal Items Schedules
 Log on to the MVL intranet site.
 Click on the Merchandising tab.
 Click on the Merch Documents link.
 Click on the Seasonal Items folder.
 Select desired store and document.
New Items
 Items that are new to the stores merchandise list. These items are usually
promoted through print ads and store displays.
Accessing New Items Lists
 Log on to the MVL intranet site.
 Click on the Merchandising tab.
 Click on the Merch Documents link.
 Click on the New Items folder.
 Select desired store and document.
New Items Procedures
Adding Items To Stock
 Before requesting a product, make sure you have space for the item.
 Research the product.
 Print out the item with a picture and description.
 Write the reasons for wanting to bring in the new item.
 Put all requests into the inventory coordinator’s box.
 The inventory coordinator will review the request weekly.
 The inventory coordinator or the manager will write the approval/denial.
o If approval, arrival time for new items logged.
 Original paperwork will be returned to supervisor’s box indicating the status of
the request.
 All other new items that have not followed this procedure will be Z Flagged.
Locations For New Items
 On Thursday or Friday, the inventory coordinator receives the ERP (day varies by
store).
 The inventory coordinator will assign a temporary location code in IMU and post
the new item list with the date of arrival.
 The supervisor will then create a home on the shelf or peg and put the new bin tag
up with the correct location.
 The standard time for completing this is six days.
New Item Arrival
 New items will arrive ten days after the Tuesday or Wednesday of their ordering
(day varies by store).
 A home must be made and the location code must be updated.
 Sales associates must be instructed of the arrival date of the new items and their
respective homes so they can be properly stocked.
Items From Merchandising
 The inventory coordinator will let you know when new merchandise is being
ordered from Hilo office’s merchandising department.
 Repeat procedures from Location For New Items and New Item Arrival.
Discontinued Items
 Items that are discontinued from selling for the following reasons:
o Manufacturer suspended or terminated production of item.
o Poor sales history for item in stores.
Accessing Discontinued Items List (ACE Hardware)
 Log on to MVL intranet site.
 Click on Operations Documents located on the left side of the page.
 Click on the ACE Cancelled Items excel sheet.
Accessing Discontinued Items List (Ben Franklin Crafts)
 Log on to MVL intranet site.
 Click on the Merchandising tab located near the top of the page.
 Click on the Merch Documents bullet located on the left side of the page under
the category titled Merchandising.
 Click on the folder labeled Hot Sheets.
 Click on the desired folder and the desired month.
Adding SKUs To Inventory
 Merchandising emails over a new SKU request form (Reference Binder) to the
stores. The stores make their respective requests and then email the forms back to
merchandising. Merchandising makes the changes in the inventory database.
Clip Strips
 Clip strips are small merchandise display units that promote impulse sales. Data
shows a 25% unit sales increase for items that are clip stripped. Examples of
items that have been successfully merchandised on a clip strip include utility
knives, safety goggles, desktop scissors and batteries. It is best to locate clip strip
items near products they are associated with. For example, placing utility lighters
near fire logs or permanent markers near food storage containers.
Damaged & Pilferage Items
 A damaged item is an item damaged through receiving or through the store.
 A damaged item through receiving is an item that is received defective. This item
is reported and a claim is processed to the vendor. The defective item is then
destroyed and the store is compensated with credit by the vendor. If the item is
only slightly defective, it may be bought at a reduced price and sold at a reduced
price.
 Damaged items through the store are the items that are damaged while being in
the store. These items are reported in the store damaged items binder and the
losses are taken off the funds in the store budget.
 Pilferage items are the items that are stolen. The losses from these items are
reported and taken out of the shrinkage category.
Deadstock Clearance Program
 The purpose of this program is to identify and dispose deadstock items that have
not sold for the past 12 months and have not been received for the past 90 days.
Deadstock items negatively impact our cash flow and our ability to bring in new
items that can generate sales and gross margin dollars. It affects our ability to
manage shelf space and long-term customer perceptions on our in-store
merchandising.
Item Ranking
 Ranking is the process of grouping items into categories for analysis and
reporting. The Eagle Browser offers a number of ranking categories, such as units
sold, dollars sold, gross profit dollars, gross profit %, on-hand value, and year-todate transactions. This document focuses on the “units sold” ranking, or
Popularity Code, and how it can be used to drive calculations for order points and
computer suggested orders.
Ranking codes
 A: Top selling items
 B: Next best selling items
 C: Next best selling items
 D: Slowest selling items
 X: No sales within reporting range
Ranking calculation
 The computer assigns a ranking code to each SKU by comparing it to every other
SKU on the system. Users determine the breakpoint between codes (for example,
where A-ranked items end and B-ranked items begin) by specifying a breakpoint
percentage.
 For example, if the breakpoint percentages were set up as A=40%, B=70%,
C=90%, and D=100%, the top 40% of all units sold within the year receive a
popularity code of A, the next 30% of all units sold within the year receive a
popularity code of B (the difference between the A and B percentages), the
following 20% would receive a code of C, and the final 10% would receive a code
of D.
Why Ranking Is Important
 If using the computer for inventory management and generating computer
suggested orders, order points are calculated by rank after the first year the store
is open. This allows for different weeks of supply values to be assigned for each
ranking code.
 For top-selling, A-ranked items, a lower number of weeks of supply help optimize
inventory turns and reduce overstock. For slow-moving, D-ranked items, a higher
weeks of supply helps maintain adequate shelf quantities and promote sales.
 When calculating order points by rank, changing the ranking code values may
have a significant impact on your overall inventory levels and turns. For example,
if the breakpoint percentage for A-ranked items is increased from 25% to 40%, a
number of SKUs that were high-end B-ranked items now become low-end Aranked items – resulting in a lower weeks of supply order point calculation and
lower inventory levels. Or, if the breakpoint percentage for A-ranked items is
reduced from 70% to 40%, a number of low-end A-ranked items now become
high-end B-ranked items – resulting in a higher weeks of supply order point
calculation and increased inventory levels.

To ensure the appropriate weeks of supply value is used when calculating each
item’s order point, it is a good practice to rank every store’s inventory file
according to the following annual unit sold ranges.
Location Codes
 A location code is a brief series of letters and numbers that identify a specific area
of your store. A distinctive code is assigned to each four-foot section where the
items are displayed or stored. Then, location codes are assigned to every item in
your store.
Markups & Markdowns
 A markup is a price increase for an item. This usually is the result of a market
price increase for the material(s) used to make the item.
 A markdown is a price decrease for an item. This can result for any of the
following reasons:
o Decrease in market price for the material(s) used to make the item.
o Unpopular or deadstock item.
o Overstock of item.
o Discontinued item.
Obsolete Inventory
 Obsolete inventory is merchandise that does not have any true or anticipated
demand. Carrying the cost of dead items causes a drag on all of your financial
ratios. Every store needs to create a plan to recapture cash from dead inventory, to
reinvest in inventory that turns. In recent years, the lifecycle of products has
diminished. Today’s hot item is tomorrow’s dead item.
 Liquidating non-performing assets can be time-intensive and emotional. Many
retailers do not have a dedicated system in place for this, and may view it as a low
priority. Some of the reasons for identifying and liquidating obsolete inventory:
o Having a documented process for assessing the value and merchantability
of slow-moving inventory assures that these items are kept to a minimum.
o Liquidating obsolete, non-performing inventory for the best price you can
get is crucial. Every dollar obtained for a non-performing asset is a dollar
of working capital preserved.
o By liquidating obsolete inventory, your store looks fully stocked with
clean, in-demand items. Customer visits are enhanced when they can
count on finding interesting, updated product assortments.
o Merchandise sitting on a shelf costs money. It is not unusual for a retailer
whose inventory has not been reviewed over a period of time to find that
20 – 25% of the store’s total items are non-performers. Even a store that
vigorously culls its inventory could have 5 – 10% of total inventory in
non-performing merchandise. There are a number of reasons for this,
many of which are almost unavoidable.
 There are three components of the costs of carrying dead inventory and its impact
on your bottom line:
o Lost Gross Profit Dollars
Using a very aggressive approach and disposing of your dead inventory,
even at any price, will generate useful cash and clear up space.
o Real Estate Costs
The high occupancy costs of retailing require that every available inch of
merchandising space produce a return on investment. For example, if a
store with 10,000 square feet of sales space has 23% of that space
occupied by non-performing merchandise, and a base rent of $12 per
square foot, that store spends $27,600 per year on space for merchandise
that is collecting dust. If a store with 10,000 square feet of sales space has
just 5% of that space occupied by non-performing merchandise, at $12 per
square foot this is still $6,000 per year with no return.
o Other Carrying Costs
Inventory is a nonproductive asset – it earns no interest but costs you
space, shrinkage, insurance and handling.
Operational Standards
 Bin Tag Colors:
o Yellow – standard color tag
o Green – never out listing
o Red – do not reorder Z Flag or close-out Y Flag
o Blue – impulse
 Signage Colors:
o Yellow – regular signage in the aisle – never outs
o Pink – main aisle, sidewalk
o Lime – circular/flyer sales, additional signs needed
o Red – Z Flag and Y Flag close outs
o Orange – in store specials
Overstock Program
 An item is considered to be overstocked when its quantity on hand count is twice
its minimum order point. When this happens, the quantity on hand of the item is
reduced through inventory reduction procedures. These procedures usually
include temporarily lowering the price of the item until it reaches the desired
quantity on hand count or temporarily promoting the item until the inventory
count is reduced.
Price Changes (RHR)
 Merchandising sends over a list (RHR) of new item prices. The stores must adjust
their item prices to match the prices on the RHR. These changes are usually a
result of changes in market prices. If there is a rise in a particular material, the
price of an item made up of this material will reflect the rise in cost. The same
applies for a decline in cost.
Processing Claims (Defective, Damaged, & Pilferage Items)
 All defective, damaged, and stolen items are reported in the claims binder. The
binder contains three categories: DMA, DMN, and pilferage. The claims are
allocated into their respective categories.
Damaged ACE Items (Claimable) (DMA)
 These are damaged or defective ACE items that are claimable. Thus, the store has
the possibility of retaining money or credit back by submitting claims for these
items.
 These items include:
o Returned defective items.
o Freight items with hidden damages.
o Miscut keys.
Damaged On Arrival
 These items are defective upon arrival of ACE freight. When reported, the claims
are processed with the DMA listing. The reason for this is that these items are
defective and claimable.
 Almost always guaranteed to receive money or credit back.
Damaged ACE or Non-ACE Items (Not Claimable) (DMN)
 These are damaged, defective, or stolen items that are not claimable. The reasons
for this could be that customers or employees damaged the items, the items were
damaged or defective from Non-ACE vendors, or the items were pilferage items.
Pilferage Items
 These are stolen items that cannot be claimed. The store considers this an
inevitable expense of doing business.
Policy Codes
 ACE items are assigned policy codes, which determine their respective claim
policies.
 Policy A
o These items are no hassle money back guaranteed claims.
 Policy B & C
o These items are thoroughly reviewed and investigated before a claim is
either approved or dismissed.
Processing Claims Procedures
 Regardless of whether the items are claimable or not, the items must be removed
from inventory to maintain accurate counts. The items are removed through the
Point Of Sale (POS) system.
o Enter username and password.
o Enter Customer Account # (DMA, DMN, and pilferage have separate
account numbers).
o Type in SKUs and quantities lost.
o Print reports.
 After the inventory counts are adjusted, the claims are made through ACENET.
o Defective Returns

RIS

1. Before entering claims on ACENET, a report of the defective
returns must be printed from the Eagle Browser
i.
Enter user name and password.
ii. Enter RPE in the Launch field.
iii. Click Run F4.
iv.
Return to the main menu page.
v.
Click on Reports Menu.
vi.
Click on Spooled Report Maintenance (MSP).
vii.
Filter to user name.
viii. Click on report.
ix. Print out defective returns.
2. Once the defective return reports are printed, the claims can be
made on ACENET.
i.
Enter user name and password.
ii. Click Returns.
iii. Click Defective Goods.
iv.
Click ACE Claims.
v.
Enter SKUs and quantities.
vi.
Click on the Credit/Review Listing tab.
vii.
Filter to current date.
viii. Print out listing.
o DMA
1. The remaining items in the DMA listing are also reported in
ACENET.
i.
Enter user name and password.
ii. Click Ordering/Invoicing.
iii. Click Invoice Adjustments.
iv.
Click Invoiced Item.
v.
Click RSC.
vi.
Select invoice number or invoice date.
vii.
Enter in SKUs and quantities.
viii. Filter to current date.
ix. Print reports.
File all paperwork into weekly claims folder for review by office administrator.
A report that lists items and their respective quantities on hand. Stores use this
report to verify that the actual quantities on hand in the store match the counts on
the report. Stores view this report weekly during inventory maintenance
procedures. Ultimately, the purpose of this report is to retain the most up-to-date
inventory count.
Sale Plan Carryover
 At the end of each promotion, merchandising sends a report of the sales plan
carryover to each store. This report lists the items that the respective stores have
an overstock of. The plan is to create a new promotion to reduce the inventory



count of the items. Along with the list of items that should be included in this new
promotion, the report contains the new promotion prices for the items.
To run the report:
o Log in to the Eagle Browser.
o Type in MIP in the Launch box.
To print the report:
o Type in RUP in the Launch box.
o Click on the Option link and select Finalize.
o Click on the From/To link and select Promotion Type.
o Print report.
Signs and bin tags with the new prices are made for the overstocked items through
Eagle. The items are promoted until they reach a certain point in their respective
inventory counts. The signs and bin tags are removed and the original prices are
reinstated.
Store Supplies
 Store supplies are items you purchase to use within your store or give away. They
are not normally sold to customers and you may be required to pay sales tax on
them. Some examples include shopping bags, computer paper, and brochures.
 Store supplies should not be confused with store use items, which are items you
purchase for resale, but also use in your store (i.e. batteries, paper, etc.).
Store Use & Donation Items
 Store use items are goods that you purchase for resale to customers, but also use
in your store. Examples of store use items include paper towels, glass cleaner,
toilet paper, snow shovels and batteries.
 Store use items are often confused with store supplies, but they are very different.
Store supplies are items you purchase to use within your store or give away. They
are not normally sold to customers, and you may be required to pay sales tax on
them. Examples of store supplies include shopping bags and computer paper.
 Donations are items you buy with the intent of selling to customers, but remove
from the shelf to give to charity. One example is a power tool that you decide to
donate to a Little League auction.
 With store use items and donations, it is important to have procedures that ensure
the correct quantity on hand is maintained and sales tax is properly applied (if
applicable) when these items are used or consumed by the store.
Transfer Program
 If a store is out of stock of a particular item and another store has this item, the
item is transferred to the store in need. This usually occurs when Customers
request a particular item or if a certain store location sells this item more
frequently than the other stores and is in need of more. This program only applies
to intra-island or intra-state transfers. The transfer program procedure can be
found in the Eagle Browser manual.