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MODULE 1
Pawnshop Operation: Introduction
Objectives: At the end of this Training Module, the participants are expected to:
 Get to know each other and establish rapport necessary to create a dynamic
learning environment.
 Set expectations towards self, co-participants, the trainer and the training
program in general.
 Have a general idea of how Venus Pawnshop Incorporated (VPI) operates
 Have a picture of how they can contribute to the success of the business
 Understand the basic competencies necessary for their chosen profession.
 Get acquainted with applicable BSP Manual of Regulations for Non-Bank
Financial Institutions (Regulation P – Pawnshops)
Materials/Equipment Needed: Ppt Presentation Materials, Laptop/Computer, LCD Projector,
Hand-outs, cartolina strips, marking pens
Topic 1 - Recall VPI Operation
Pawnshop shall refer to a person or entity engaged in the business of lending money on personal
property that is physically delivered to the pawnshop premises as loan collateral. The term shall
be used interchangeably, with pawnbroker or pawnbrokerage”
source: BSP Manual of Regulations for Pawnshop (BSP-MORF)
Pawner/Pawn owner shall refer to a borrower of a pawnshop.
The identified owner of the item or property presented or offered to the pawnshop in exchange of
a loan.
Pawn in the personal property delivered by the pawner to the pawnee as security for a loan.
Personal property offered by certain individual to the pawnshop in exchange of a loan. This
property is kept under the pawnshop’s care until the loan is paid or redeemed.
A typical transaction begins with a potential borrower coming into the pawnshop with the item
he or she wants to pledge for a loan. The pawnbroker or appraiser then determines how much to
loan the customer for the item. When both parties agreed with the amount to be loaned out, the
appraiser then sealed the pawned item and let the borrower signed on top of it to prevent
tampering. This will make the borrower feel secure that his or her security for a loan – personal
property will not be retouched, used and damage by the pawnshop personnel.
After the pawn ticket – pledge loan contract has been read and signed by the borrower, the
cashier will now release the amount stated in the pawn ticket and be reminded of its expiry date
of redemption if not renewed (payment of accrued interest to extend the short term loan) on time.
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The pawnshop will issue new pawn ticket for renewal provided that the old ticket has been
surrendered and paid the interest accrued upon.
Why Investors choose Pawnshop Business:
1. Lending money with collateral and no credit investigation involve
2. Secured return of money lent
3. Generate income thru lending money
Pawnbrokers derive income primarily from two or three income streams:
1. Interest and Service Charges on money lent
2. Profits on sale of unredeemed merchandise
3. Profits from ancillary specialty services such electronic load for mobile phones.
On the pawner’s perspective, basic considerations in choosing a pawnshop:
1. Higher valuation
2. Lower interest rates
3. Security of pawned item
Acceptable Pawn Items:
1. (J) Jewelries
2. (A) Appliances
3. (W) Watches
4. (S) Sensitive Items
Fundamental factor that affects the success of the Pawnshop Business – CUSTOMER
TRUST
The Pawn owner trusts the pawnshop to take care of the property being pledged. In return, the
pawnshop promises not to break the trust of the pawn owner.
To protect and maintain customer trust, the company needs to set-up control mechanisms and
professionalize its operation.
Key Pawnshop Positions and Functions
1.
2.
3.
4.
5.
6.
Appraiser
Cashier/Vault Custodian
General Clerk
Display Custodian
Small Vault Custodian
Appliance Custodian
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The Organizational Structure of Outlets
Operations Officer
Finance Head
Accounting Head
Appraiser
Cashier / Vault
Custodian
General Clerk
Administrative Function
Custodian
Topic 2: BSP Manual of Regulations for Non-Bank Financial Institutions
P – Regulations (Regulation Governing Pawnshops)
Section 4102P – Definition of Terms
Pawnshop shall refer to a person or entity engaged in the business of lending money on personal
property that is physically delivered to the pawnshop premises as loan collateral. The term shall
be synonymous and may be used interchangeably, with pawnbroker or pawnbrokerage.
Pawner shall refer to the borrower of a pawnshop.
Pawnee shall refer to the pawnshop or pawnbroker.
Pawn is the personal property delivered by the pawner to the pawnee as security for a loan.
Pawn ticket is the pawnbroker’s receipt for a pawn and shall not be considered as an official
receipt for amounts collected.
Property shall include only such personal property which can be physically delivered to the
control and possession of the pawnee.
Vital records shall consist of the Loans Extended/ Paid Registers, General Ledger/Journal, that
may be in electronic form, covering the current and at least the preceding five (5) years of
operation, unused accountable forms and permanent records, e.g., articles of incorporation/copartnership, by-laws, stock certificates, etc.
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Bulky pawns shall refer to household appliances, office machines and the like, which occupy
considerable amount of space i.e., measuring at least 1.5 x 1.5 x 0.5 feet.
Premises shall refer to the area where the pawnshop conducts its business and maintains office.
It includes office or storage spaces maintained and/or used by the pawnshop which are adjacent
to the pawnshop’s location.
Section 4141P – Safeguarding of Pawnshop Assets
In order to safeguard pawnshop’s assets (pawned items) and mitigate the risk of loss arising from
malfeasance or fraudulent practices of their employees, pawnshops shall adopt any of the
following:
a. Bonding of accountable officers/employees with reputable insurance/surety companies
accredited by the Insurance Commissioner; or
b. Equivalent self-insurance mechanism acceptable to Bangko Sentral
Section 4142P.1 Definition, Qualification and Duties and Responsibilities of Officers
Officers – are those persons whose duties as such are defined in the by-laws (for corporations) or
those who are generally known to be the officers of the pawnshop wither thru announcement,
representation, publication or any kind of communication made by the pawnshop. The term
officer shall include, but not limited to the following: the proprietor, managing partner, president,
and manager or officer-in-charge of head office or branch.
Section 4142P.2 General Qualification of a proprietor, partner, director, president, and
manager or officer-in-charge of head office or branch
Any person can be a proprietor, partner, director, president, manager or officer-in-charge of a
pawnshop’s head office or branch, provided he/she:
a. Must have undergone a briefing on pawnshop regulations conducted by the BSP or any
accredited service provider;
b. Must have undergone a briefing on the Anti-Money Laundering Law (AMLA) as
prescribed by Subsec. 4691P.1;
c. Must not be included in the BSP Watchlist; and
d. Must not possess any derogatory information from the National Bureau of Investigation
(NBI). The NBI clearance shall be submitted pursuant to Subsecs. 4104P.4 and 4151P.4
The NBI clearance shall also be required for any newly elected/appointed director, president,
manager or officer-in-charge and newly accepted partner or director of an existing pawnshop.
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Sec. 4156P – Business Days and Hours
Pawnshops, including their branches, shall transact business at a minimum of five (5) days a
week, for a minimum of six (6) hours a day, both to be selected by them. They may, at their
discretion, remain open beyond the aforesaid requirement as they deem it necessary.
The business hours and business days shall be printed on the face of the pawn ticket and shall be
posted together with the original BSP AOR/AO conspicuously at all times within the premises of
the pawnshop, preferably at the window or door that is clearly visible to the pawning public.
Pawnshops shall only transact business in the pawnshop’ registered place of business or premises
of the head office and branches, if any. Transacting business outside the pawnshops’ registered
place of business or premises shall be a ground for cancellation of pawnshop’s AOR or AO, as
the case may be.
During business days and hours, the pawnshop head office and every branch shall have at least
one (1) personnel, (manager or officer-in-charge, if any) that has attended the briefing on
pawnshop regulations and AMLA seminar mentioned in Subsec. 4101P.5
Section 4161P - Records
The accounting period of pawnshops shall be on a calendar year basis.
The accounting records of pawnshops shall consist of records of original entry and books of final
entry.
The records of original entry shall consist of pawn tickets, official receipts, vouchers and other
supporting documents. The books of final entry shall consist of the general ledger, subsidiary
ledgers and registers of loans extended and loans paid.
Pawnshops may use any form of loans extended and loans paid registers as long as they contain
spaces and columns for information enumerated in Section 11 of P.D. No. 114.
A pawnshop that uses a computerized system may record its loan transactions in individual loan
extended vouchers which shall contain the same information necessary to comply with Section
11 of PD No. 114 in lieu of the loan extended and loans paid registers. Such pawnshops shall
periodically compile or bind the loan extended vouchers and shall be made available for BSP
examination upon request.
The Description of Loan Registers of Pawnshops provided in Appendix P-1 shall be followed.
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Subsection 4161P.1 – Uniform System of Accounts
Pawnshops shall strictly adopt/implement the Uniform System of Accounts prescribed for
pawnshops in the recording of daily transactions including reportorial requirements.
The Uniform Chart of Accounts for Pawnshops is provided in Appendix P-1.
Subsection 4161P.4 – Retention of Records
Pawnshop records, ledgers, books and documents (including those in electronic media): (a) shall
not be destroyed or disposed of for at least five (5) years; (b) shall have back-up hard and/or soft
copy to allow reconstruction of records in case of loss or destruction due to fire and other
fortuitous events; and (c) shall be made available for BSP examination upon request.
A pawnshop that does not have records, ledgers, registers, books or documents or that refuses to
permit access to its records, ledgers, registers, books or documents to an authorized BSP
officer/examiner may be considered as refusal to permit an examination.
Subsection 4171P.1 – Proper accounting records
a. All pawnshops shall maintain proper and adequate accounting records which include
reconciliation of due to/from head office/branches, if the pawnshop has several offices.
b. Records should be kept up-to-date and shall contain sufficient detail so that an audit trail is
established.
Subsection 4171P.2 – Number control
The following are the forms, instruments and accounts that shall be number-controlled:
1. Pawn tickets
2. Official receipts; and
3. Expense vouchers
Subsection 4171P.3 – Safekeeping of Records and Insurance of Premises
Vital records for the current year must be kept inside the safe or vault when not in use. Vital
records are pawn ticket duplicates, loan paid and loan extended registers or loan paid and
extended vouchers. Other pawnshop records/documents may be placed in filing
cabinets/documents outside the vault or safe but within the pawnshop premises.
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For this purpose, a pawnshops’ vault i.e., its walls, ceiling and floor shall be made of steelreinforced concrete or such other equally safe materials/specifications. Vault doors shall be made
of steel or other drill and torch-resistant materials.
Safes should be sufficiently heavy or be securely anchored to the floor of the premises. Vital
records kept in electronic media including back-up copies thereof shall be kept in safes or vaults
designed to protect them from damage due to fire or other fortuitous events.
The pawnshop premises and furniture, fixtures and equipment of pawnshops must be insured
against fire.
Subsection 4171P.4 – Miscellaneous
No employee shall be permitted to process a transaction affecting his own account.
Subsection 4181P.2 – Use of Registered/Business Name in Signage, Pawn Tickets and Other
Forms
The following regulations shall be observed with respect to the use of the business/registered
name in the signage, pawn ticket and other forms of a pawnshop:
a. As a general rule, the registered name appearing in the Certificate of Registration from the
DTI or SEC, as the case may be, shall be used consistently in the pawnshop’s signage and in all
documents including pawn tickets, official receipts, stationery and other similar documents of the
pawnshop.
b. A pawnshop that uses or will use a name that is different from its registered name as
mentioned in Section 4181P above or that uses or will use a name already registered and being
used by another pawnshop shall indicate parenthetically under such name, the registered name of
the pawnshop with the DTI or SEC, as the case may be, with the words “owned and operated by”
before the registered name in the pawnshop’s s pawn tickets, official receipts, stationery and
other similar documents.
c. A pawnshop that is a subsidiary or affiliate of another pawnshop shall likewise indicate such
relationship in the pawn tickets, official receipts, stationery and other similar documents. A
subsidiary is a corporation more than fifty percent (50%) of the voting stock of which is owned
by another corporation; while an affiliate is a corporation less than fifty (50%) of the voting
stock of which is owned by another corporation.
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d. The exact address of the pawnshop shall be indicated consistently in all pawnshop documents
(e.g., pawn tickets, official receipts, stationery and other similar documents) and in the business
permit issued by the city or municipality
Subsection 4301P.1 – General guidelines
A pawnshop shall extend a loan only if such is secured by personal property that could be
physically delivered to the control and possession of the pawnshop.
Before accepting articles as pawn, the pawnshop must ascertain whether the pawner is the true
owner of the article offered as pawn. In the conduct of business, a pawnshop shall be guided by
the standard of diligence that is expensed of “a good father of a family”, ensuring always that
there is no ground to suspect that the article/s offered as pawn was an object of robbery or theft.
Subsection 4301P.2 – Pawnshop Prohibitions
Pawnshop owners/managers/officers/directors/employees shall not:
a. Use pawned articles for themselves or allowing employees to use said articles for any
purpose without the express consent or authority of the pawner unless continued use is
necessary to preserve the pawn;
b. Grant loans to minors or incompetent persons; or
c. Re-pledge/re-pawn the pawned article.
Subsection 4301P.3 – Know your Pawner
Pawnshops who transact with any pawner for the first time shall require the pawner to present
the original and submit a clear copy of at least one (1) valid photo bearing identification
document (ID) issued by an official authority.
The valid ID should indicate the address where the pawner resides, otherwise, pawner shall be
required to present together with the valid ID, a barangay certification or a copy of a billing
statement that indicates the address where the pawner resides.
For this purpose, the term “official authority” shall refer to any of the following:
i.
Government of the Republic of the Philippines;
ii.
its political subdivisions and instrumentalities;
iii.
Government-owned and/or controlled corporation (GOCCs); and
iv.
Private entities or institutions registered with or supervised or regulated wither by the
BSP or the SEC or the Insurance Commission (IC)
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Valid IDs include the following:
1. Passport including those issued by foreign governments;
2. Driver’s license;
3. PRC ID;
4. NBI Clearance;
5. Police Clearance;
6. Postal ID
7. Voter’s ID
8. TIN
9. Barangay certification;
10. GSIS e-Card;
11. SSS Card;
12. Senior Citizen card;
13. OWWA ID;
14. OFW ID;
15. Seaman’s book;
16. Alien Certificate of Registration/Immigrant Certificate of Registration;
17. Government office and GOCC ID (e.g. AFP, HDMF IDs);
18. Certification from the NCWDP;
19. DSWD certification;
20. IBP ID; and
21. Company IDs issued by private entities or institutions registered with or supervised or
regulated either by the Bangko Sentral, SEC or IC
The foregoing shall be in addition to the customer identification requirements under Rule 9.1.c of
the Revised Implementing Rules and Regulations (RIRRS) of R.A. No. 9160, as amended (AntiMoney Laundering Act), which requires pawnshops to obtain the following minimum
information/documents from pawners:
1. Name;
2. Present address;
3. Permanent address;
4. Date and place of birth;
5. Nationality;
6. Nature of work and name of employer or nature of self-employment/business;
7. Contact numbers; and
8. Specimen signature
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A copy of the ID, barangay certificate and/or billing statement shall be kept by pawnshops for
convenience of the pawner who continues to transact with the pawnshop but said documents
should be updated at least every three (3) years.
Pawnshops shall post excerpts of the above requirements conspicuously in its principal place of
business and branches. The poster (shown as Appendix 7) shall not be smaller than 8.5 x 11
inches.
Every pawnshop shall maintain records containing all the information required under this
Subsection and Section 11 of Presidential Decree No. 114 for each of their clients.
Section 4302P – Loan Limit
Pawnshops may grant such amount of loans as may be agreed upon between the parties. The
amount of loan shall in no case be less than thirty percent (30%) of the appraised value of the
security offered, unless the pawner manifests in writing that he is applying for a lesser amount.
Pawnshops shall not under-appraise the security offered for the loan to circumvent the restriction
prescribed by this Section.
Section 4303P – Interest and Surcharges
The rate of interest including surcharges on any loan or forbearance of money extended by a
pawnshop shall not be subject to any ceiling. However, pursuant to a decision of the Supreme
Court (case of Medel, et al vs Court of Appeals, GR No. 131622 dated 27 November 1998) the
interest rate shall not be iniquitous, unconscionable, or contrary to morals, if not against the law
as may be determined by the Court.
No pawnshop shall collect interest on loans in advance for a period longer than the original term
agreed upon as indicated in the pawn ticket.
Subsection 4303P.2 – Other charges
In addition to interest, pawnshops may impose a maximum service charge of five pesos (P5.00),
but in no case to exceed one percent (1%) of the principal loan. No other charges, such as but
not limited to insurance premium for the safekeeping and conservation of the pawned item, shall
be collected.
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Subsection 4303P.3 – Posting of Interest Rate and other charges
Pawnshops shall post conspicuously in its principal place of business and branches the interest
rate in percent, specifying therein if such interest rate is yearly, monthly or daily, as well as the
other charges, if any, to be charged by the pawnshop. The poster shall not be smaller than 8.5 x
11 inches.
Section 4305P – Past Due Accounts; Renewal
A loan may be renewed for such amount and period as may be agreed upon between the
pawnshop and the pawner, subject to the same conditions provided in this Part for new loans.
No loan shall be renewed or its maturity date extended unless a new pawn ticket as defined in
Section 4102 shall be issued indicating the new term of the loan agreed upon by the pawnshop
and the pawner.
Subsection 4305P.1 – Right of pawner to redeem pawn within 90 days from maturity
A pawner who fails to pay or renew his loan with a pawnshop on the date it falls due shall have
ninety (90) days from the date of maturity of the loan within which to redeem the pawn by
paying the principal amount of the loan plus the amount of interest that shall have accrued
thereon. The amount of interest due and payable after the maturity date of the loan shall be
computed upon redemption based on the sum of the principal loan and interest earned as of the
date of maturity. The procedures to be followed in case the pawner fails to redeem his pawn are
prescribed in Sec. 4324P.
If the maturity date of the loan or expiry date of redemption period falls on the pawnshop’s nonbusiness day, a regular holiday or a special non-working holiday in the locality, then the maturity
date of the loan or expiry date of redemption period shall be on the next business day.
If the pawnshop is closed on the maturity date of the loan or expiry of the redemption period,
with or without prior notice to the pawner, then the maturity date of the loan or expiry of
redemption period shall be on the next business day and the pawnshop shall not charge
additional interest or surcharge to the pawner.
If the pawnshop is closed due to a robbery, then the maturity date of the pledge or expiry of
redemption period shall be on the next business day when the pawnshop opens for business and
the pawnshop shall not charge additional interest or surcharge to the pawners.
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Section 4321P – Accepting Security and Safekeeping of Pawns
Only personal property that is capable of being physically delivered to the control and possession
of the pawnshop shall be accepted as security for loans. Certain specified chattels, such as guns,
knives, or similar weapons, whose reception in pawn is expressly prohibited by other laws,
decrees, or regulations, shall not be accepted by pawnshops as security for loans.
Except for bulky pawns, pawns shall be placed in a tamper-proof sealed plastic envelop or bag
which must be kept inside the safe or concrete vault. Bulky pawns may be placed outside the
safe or vault but within the pawnshop premises. All pawns, except those which are kept inside
the vault or safe, must be insured against fire.
Pawnshop owners shall be liable for any pawned item lost or destroyed arising out of their
negligence, fault, delay in delivery or willful violation of the loan agreement.
Section 4322P – Redemption of Pawns
A pawnshop shall not release any pawn without first requiring the pawner to present and
surrender the corresponding pawn ticket. If the pawn ticket was lost and could not be presented
or surrendered, the pawnshop shall require the owner-pawner to execute and submit an affidavit
of loss and shall ascertain the identity of the pawner, to ensure that the pawned item is released
only to the owner- pawner.
The pawnshop shall return the pawn in the same condition when they were first pawned by
pawner, upon full settlement of the loan.
Section 4323P – Pawn Ticket
Pawnshops shall at the time of the loan, deliver to each pawner a pawn ticket which shall contain
the following:
a. The business/registered name, address, telephone number, tax identification number,
business days and hours, of the pawnshop. The business name indicated in the pawn
ticket shall be in accordance with the provision of Section 4181P.2;
b. Name of pawner;
c. Pawner’s residential address;
d. Pawner’s contact number;
e. Date the loan was granted;
f. Amount of the principal loan and net proceeds;
g. Interest rate in percent, indicating if daily, monthly or annually;
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h.
i.
j.
k.
l.
m.
n.
o.
p.
q.
Interest in absolute amount;
Service charge in amount;
Penalty interest in percent, if any;
Appraised value of pawn;
Period of maturity;
Description of the pawn;
Expiry date of the redemption period;
Signature of the pawnshop’s authorized representative;
Signature or thumbmark of the pawner; and
ID presented.
No other document or instrument shall be used/issued by a pawnshop for any loan granted by it
to a pawner/borrower.
Subsection 4323P.1 – Stipulations in Pawn Ticket
The contents of the standard pawn ticket, prescribed for pawnshops pursuant to the requirements
of P.D. No. 114, and the “Standard Terms and Conditions” thereof, are in Appendices P-4
(FRONT) and P-4a (BACK).
Additional stipulations/ information enumerated under Appendix P-4b, which pawnshops may
wish to incorporate in their pawn tickets, may be included without prior approval from the BSP.
The font size for the stipulations at the back of the pawn ticket shall not be smaller than “Arial
Narrow 8”. Additional stipulations which may be included at the back of the pawn ticket shall
also be printed in the prescribed font size.
Pawn ticket shall not be smaller than 8 inches x 5 inches. The size of the pawn ticket may have
to be larger to accommodate additional stipulations that should also be printed not smaller than
“Arial Narrow 8”.
Pawn tickets shall at least be in duplicate. The first copy shall contain the word “Original”
which shall be given to the pawner when the loan is granted and surrendered upon redemption of
pawn, while the second copy shall be marked “Duplicate” which shall remain on file with the
pawnshop.
Pawn tickets shall be serially numbered.
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Pawnshops may choose the color or quality of the paper used as pawn ticket.
Transitory Provision. A pawnshop may use pawn tickets bearing a rubber-stamp of its registered
and trade name on the pawn ticket until 30 June 2011. Starting 1 July 2011, all pawnshops shall
only use pre-printed pawn tickets in accordance with these rules.
Section 4324P – Notices to the Pawner and to the Public
a. On or before the expiration of the ninety (90) – day grace period, a pawnshop shall notify
a pawner in writing that the pawn shall be sold, or otherwise be disposed of, in the event
the pawner fails to redeem the pawn within the ninety (90)-day grace period, specifying
in the same notification the date, hour, and place where the sale shall take place.
The notice shall be sent through the mode of notification agreed upon by the pawner and
the pawnshop as indicated at the back of the pawn ticket at the time the loan was granted
which may be through text/SMS message, electronic mail, fax or by mail to the
residential address. If sent through text/SMS, the pawnshop shall obtain a report from the
appropriate Telecommunications Company (TELCO) indicating that a text/SMS message
was sent to the mobile phone number given by the pawner. The report of the TELCO
shall be made available to BSP upon request.
In case no specific mode of notification is agreed upon and indicated at the back of the
pawn ticket, the mode of notification shall be by ordinary mail. Pawnshops shall exert
reasonable effort to notify the pawner and put on record if it is unable to do so.
Pawnshops shall maintain proof of the notice to pawner.
b. If upon the expiration of the ninety (90)-day grace period, the pawner fails to redeem his
pawn, the pawnshop may sell or dispose of the pawn only after it has published a notice
of public auction of unredeemed articles held as security for loans in at least two (2)
newspapers circulated in the city or municipality where the pawnshop has its place of
business, six (6) days prior to the date set for the public auction.
The notice shall be in English, and in either Filipino or the local dialect and shall contain
the following:
i.
ii.
Name and address of the owner of the pawnshop; and
Date, hour and place of the auction sale.
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In remote areas where newspapers are neither published nor circulated, the publication
requirement shall be complied with by posting notices at the city hall or municipal building of
the city or municipality and in two (2) other conspicuous public places where the pawnshop has
its place of business.
Subsection 4324P.1 – Poster
Pawnshops shall post conspicuously at the principal place of business and branches an abstract
(Appendix P-8) which shall not be smaller than 8.5 x 11 inches.
Section 4325P – Public Auction of Pawns
No pawnshop shall sell or otherwise dispose of any article or thing received as security for a loan
except by public auction at any of the following places:
a. Pawnshop’s place of business; or
b. Any public place within the territorial limits of the municipality or city where the
pawnshop conducts its business.
The auction shall be conducted under the control and direction of a duly licensed auctioneer. In
cities and municipalities where there is no duly licensed auctioneer, the public auction may be
conducted by a notary public of the city or province where the pawnshop has its place of
business.
The Auction Sheet/Book containing entries of auctioned pawned articles duly signed by the
auctioneer or notary public under oath shall be maintained by the pawnshop.
Subsection 4325P.1 – Auction of pawned items covered by a single pawn ticket
If one pawn ticket covers two or more pledged articles, and only one of the articles was sold
during the auction, the pawnshop shall allocate the loan value for each article based on their
appraised value.
Subsection 4691P.1 – Required Seminar/Training
Pawnshop personnel directly involved in pawnshop operations shall attend a seminar on the
requirements of the anti-money laundering law, particularly on customer identification, record
keeping and reporting of covered and suspicious transactions, to be conducted by the AntiMoney Laundering Council (AMLC) or by any of its recognized accredited service providers.
The provisions of this subsection shall also apply to officer(s) of the branch(es).
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The officer(s) in-charge and the personnel who have attended the required seminar may echo the
said training to all employees within thirty (30) calendar days from such attendance or as new
employees are hired.
In case of pawnshops belonging to the same group of related companies, the training/seminars
may be cascaded to other pawnshops within the group, subject to the following conditions:
1) training officers shall have attended the AMLA lectures conducted by the AMLC;
2) lecture materials to be used by training officers should be approved by the AML
Examination Group of the BSP; and
3) training officers shall submit to the BSP, the list, under oath, of pawnshop personnel who
have attended the lectures.
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Module 2
Pawnshop Operation: Transaction Flow and Procedures
Objectives: At the end of this Training Module, the participants are expected to be able to:
 Compute for Maturity Date, Expiry Date and Auction Date
 Compute Pawn AmountsKnow and Discuss the steps and processes involved in
the different pawnshop transactions
 Identify and properly use the different accountable forms and books used in
pawnshop operations
Duration: 2 Hours
Materials/Equipment Needed: Ppt Presentation Materials, Laptop/Computer, LCD Projector,
Hand-outs, sample forms, notepads and pens
Topic 1: Computing for Pawn Period
A. Pawn Date to Maturity Date
- POG No. 006: Maturity date is one (1) month from Pawn Date.
B. Maturity Date to Expiry Date
- POG No. 006: Expiry date is three (3) months from Maturity Date
Note: One (1) month is 30 calendar days (starting on the 1st day the item was pawned and ending
on the 30th day from the pawn date)
C. Expiry Date to Auction Date
- POG No. 009: Pledge loan is foreclosed if not renewed or redeemed until the auction date
set by the Management.
- POG No. 009: A valued customer can request for a delay of forfeiture of his pawn item.
- POG No. 009: Jewelry can be withheld up to two (2) months while
Appliances/Watches/Small vault items up to one (1) month only. No withholding period
on sensitive items.
D. Foreclosure
- POG No. 10: Notices shall be sent to Pawn owners to remind them of the foreclosure of
their pawn. They will be informed that their item will be included in the auction sale on a
specified date if they fail to redeem the item.
- POG No. 10: Notification by ordinary mail shall be made 90 days prior to Auction date.
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Illustration 1
One month
Pawn Date
Three months
Foreclose
Date**
Expiry Date
Maturity Date
** depends on the scheduled date set by the management
Sample: POG No. 006
Pawn Date:
Maturity Date:
Expiry Date:
Foreclose Date:
Auction Date:
June 5, 2007
July 4, 2007
October 4, 2007
December 04, 2007
January 01, 2008
Topic 2: Computing for Pawn Amounts
Pawn Transaction
A. Principal Amount Computation
- This amount will come from the appraiser depending on the item and result of the
appraisal
- Refer to Suggested Appraisal Rates for pawn items.
Sample: A Samsung Rex 60 C3312 is being pawned to the company. It has been appraised as
acceptable, however, slightly used.
Answer: Refer to guidelines (memo). In this case, the item has an appraised rate of P1,000.00.
B. Appraised Value Computation
- POG No. 003a: For loans wherein collaterals are in Pawnshop’s possession, loan value is
approximately 83.34% of the appraised value or Principal X 1.20
Sample: (Same information in “A”)
Answer:
Principal amount
Multiply by
Appraised value
P1,000.00
1.20
P1,200.00
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C. Net Proceeds Computations
- Principal Amount less Documentary Stamp Tax (DST)
Sample: (Same information in “A”)
Answer:
Principal amount
P1,000.00
Less: DST
20.00
Net Proceeds
P 980.00
D. Interest Computation
Monthly Interest is computed from the principal amount and is collected once the loan is
redeemed or renewed. Following are the Interest Rates for the acceptable pawn items:
- Jewelry
4%
- Watches
5%
- Small Vault
6%
- Appliances
6%
- Bulky Appliances
7%
To compute for the Interest Rate, the following formula is applied
(Principal X Interest rate per month X number of months from pawn date*)
*Regardless of number of days in a month
Sample 1: Same item in “A”; redeemed on/before maturity date
Answer:
Principal amount
P1,000.00
Multiply by interest rate per month
6%
Interest per month
P
60.00
Multiply by no. of months from pawn date
1
Interest
P
60.00
Sample 2: Same item in “A”; redeemed three months from pawn date
Principal amount
P1,000.00
Multiply by interest rate per month
6%
Interest per month
P
60.00
Multiply by no. of months from pawn date
3
Interest
P 180.00
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E. Maturity Value Computation
- Principal + Interest
Sample: Same item in “A”
Answer:
Principal Amount
Add: Interest
Maturity Value
P1,000.00
60.00
P1,060.00
Redemption Transaction
F. Redemption Amount Computation
- Principal plus interest and other charges (if there is any)
Sample: Same item in “A”; assuming redeemed on maturity date
Answer:
Principal Amount
P1,000.00
Add: Interest
60.00
Redemption Amount
P1,060.00
G. Other Charges – Liquidated Damages (Surcharge)
- This is added to the monthly interest when the loan is renewed or redeemed after maturity
date. POG No. 006: If the pawn is redeemed after the Maturity Date but before the Expiry
Date, the customer is charged with an interest for each month plus additional 2%
surcharge for each month that lapsed.
Sample 1: Same item in “A”; redeemed three months from pawn date
Answer:
Compute for the surcharge (2 months lapsed from maturity)
Principal Amount
P1,000.00
Surcharge rate per month
X
2%
Surcharge per month
P
20.00
No. of months lapsed from maturity
X
2
Surcharge
P
40.00
H. Other Charges – Penalty Charge
- Pawn items redeemed or renewed within or after auction months (RDS) is charge with
this fee from the principal amount. (5% if within the auction month and 10% if after the
auction month)
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Sample 1: Same item in “A”; Redeemed on the 7th month, the auction month, from pawn
date
Compute for the penalty charge
Principal Amount
Penalty Rate
Penalty Amount
P1,000.00
X
5%
P
50.00
Sample 2: Same item in “A”; Redeemed on the 7th month, after the auction month, from
pawn date
Compute for the penalty charge
Principal Amount
Penalty Rate
Penalty Amount
P1,000.00
X
10%
P 100.00
I. Other Charges – Temporary Receipt Fee
- Temporary Receipt Fee of Php20.00 for every lost pawn ticket. This is collected
independent of the principal amount whether a temporary receipt is issued in replacement
of a lost pawn ticket.
J. Other Charges – Money See
- Money see of Php20.00 for every pawn ticket. When the holder of a valid pawn ticket
wish to see or examine the pawn items, a fee is collected for every pawn ticket regardless
of the principal amount.
K. Other Charges – Cancelled Pawn Tickets
- Cancelled pawn tickets of Php20.00 per pawn ticket. If a customer decided not to push
through the transaction, for any reason, but a pawn ticket has already been issued, a fee is
collected to cover the cost of materials and services rendered.
L. Selling Price Computation
- Principal X 1.4
Sample: Same item in “A”; item was declared foreclosed and processed for display.
Principal Amount
P1,000.00
Multiply by
1.40
Selling Price
P1,400.00
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Topic 3: Accountable Forms and Custody of Books
A. Pawn Slip (POG No. 004)
- This document is used when there is a new or renewed pawn item
- Appraiser will prepare and issue this document
- It contains the following information:
For Jewelries
a. PT number
b. Date of loan granted
c. Principal Amount
d. Item Description
e. Karat
f. Weight
g. Name of Pawner
h. Address of Pawner
i. Signature of Pawner
j. Signature of Issuing Staff
k. Appraiser’s initial
For Watches
a. Same information with jewelries, but instead of karat and weight, the serial
number is stated.
For Appliance/Small Vault
a. Same information with jewelries, but instead of karat and weight, the model
number is stated.
b. The pawn slip are attached to the tags and to the pawn item
c. Items with detachable parts, each part is marked with the pawn receipt number on
a masking tape.
For Motor vehicles
a. Same information with Jewelries, but instead of karat and weight, the engine
number/motor or chasses number/body number is stated.
- Pawn slip must be attached to the item upon storage
- Upon renewal, a new pawn slip is filled up & attached to the renewed item together with
and on top of the old pawn slip. The same information is stated except the date; the renew
date.
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B. Pawn Ticket (POG No. 005)
- A document that is issued to the customer when they pawn.
- General Clerk will prepare and issue this document
- Should be issued according to the sequence of its serial number.
- General clerk will issue Pawn ticket based on pawn slip
- Prepared in triplicate copy and distributed as follows:
a. Original Copy – Customer
b. Duplicate Copy – Accounting (Cebu)
c. Triplicate Copy – Stub file (Branch copy)
-
It contains the following information:
a. Name of pawner
b. Address of pawner
c. Date of loan granted
d. Maturity date
e. Expiry date
f. Principal amount
g. Interest rate
h. Appraised value
i. Documentary Stamp Tax (DST)
j. Net proceeds
k. Signature of pawner
l. Signature of issuing staff
m. Appraiser’s initial
n. Terms and condition
C. Official Receipt
- This document is used when there is a loan payment of customers.
- Cashier will prepare and issue this document.
- It contains the following information
a. Date of payment
b. Name of customer
c. Address of customer
d. Amount of payment
e. Form of payment
f. Ticket No.
g. Principal Amount
h. Interest
i. Service charges
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j. Other charges
k. Total amount due
l. Initial of issuing staff
D. Cash Voucher
- This document is used to process cash disbursements
- Accounting department will prepare and process this document.
- It contains the following information:
a. Date
b. Name of payee
c. Address of payee
d. Particulars (description of expense)
e. Amount of expense
f. Total Amount in words
g. Total Amount in figures
h. Prepared by: (Name of Preparing staff)
i. Approved by: (Name of Approving staff)
j. Received by: (Name and signature of payee)
E. Lay Away Plan Card
- This document is used when there is a customer who opted to buy the auction item in
installment basis.
- It is also used when a pawn item is redeemed in an installment basis.
- General Clerk will prepare and file this document.
- It should be used according to the sequence of its serial number.
- This document contains the following information:
a. Name of Plan Holder
b. Address of Plan Holder
c. Reservation Date
d. PT No. (if there is any)
e. Maturity Date
f. Sales Price
g. Description of Article
h. Summary of Payment (No., Date, Dr, OR and Remarks)
i. Terms and conditions on the reverse side
F. Books – Loan Extended Book (LE Book)
- Used to record loan extended transactions
- Also used to record renewed of pawn items
- General Clerk has the custody over this book
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-
It contains the following information:
a. Pawn Date
b. PT No.
c. Pawn Item Description
d. Principal
e. DST
f. Net Loan Proceeds extended
g. Name of customer
h. Signature of customer
G. Books – Loan Paid Book (LP Book)
- Used to record loan paid transactions
- Appraiser has the custody over this book
- It contains the following information:
a. Payment Date
b. OR No.
c. PT No.
d. Name of customer
e. Pawn item description
f. Principal
g. Interest
h. Other charges
i. Total amount paid
H. Books – Cash Receipts Book (CRB)
- Used to record receipts of cash other than loan payments
- Accounting Department has custody over this book
- It contains the following information:
a. Date of receipt
b. Issued OR No.
c. Description of transaction (Particulars)
d. Amount received
e. Related account title
I. Books – Cash Disbursement Book (CDB)
- Used to record releases of cash other than loan extended
- Accounting Department has custody over this book
- It contains the following information:
a. Date of Cash Voucher
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b.
c.
d.
e.
Official Receipt no. of expense
Description of transaction (Particulars)
Amount disbursement
Related account title
J. Books – Sales Book
- Used to record cash sales from display items
- Display custodian has custody over this book
- It contains the following information:
a. Date of sale
b. Issued OR no.
c. Name of customer
d. Description of item sold (Particulars)
e. Amount of item sold
f. Related Account Title
K. Books – Journal Book
- Used to record transactions not recorded in LE, LP, CR and CD Books
- Accounting department has custody over this book
- It contains the following information:
a. Date of Journal Voucher (JV)
b. JV No.
c. Description of transaction (Particulars)
d. Amount
e. Related Account Title
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Topic 4: Pawn Transactions – JAWS
Appraiser
Process 1
STAR
Cashier
General Clerk
Process 3
Process 4
Pawn Slip
(PS)
PT Orig &
Pawn Slip (PS)
PT Triplicate
NO
YES
Duplicate
PT Orig &
Duplicate
Accepta
ble
File copy
of Branch
Process 2
Pawn Slip (PS)
Process 5
PT Original
PT Duplicate
Return
Item
END
Item Tag
(If necessary)
File copy
of Cebu
Safe keep
Custodian
Process 1: Appraiser
1. Examine the acceptability of the Pawn Item. (separate topic in Module 3: Appraisal)
Process 2: Appraiser
1. If the pawn item is acceptable,
a. Compute the principal/loan value based on the data gathered.
b. Check if the amount is within the assigned pawn value per pawn ticket. (POG No.
003h) If within, then proceed to “step 1.e.”
c. If not, request an approval from the area supervisor or operation officer.
d. If area supervisor/operation officer approves, then proceed to next step and write the
approving code in the pawn slip. If not, proceed to “step 2.a.”
e. Inform the customer of the amount
f. If the customer will agree with the amount, proceed to “step g”. If not, proceed to
“step 2.a.”
g. Prepare pawn slip and fill-up the necessary information.
h. Require the customer to sign the pawn slip.
i. Forward the item and pawn slip to the General Clerk
j. Advise customer to wait for the next process.
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k. End of process
2. If the pawn item is not acceptable,
a. Inform the customer
b. Return the item to the customer.
c. End of process.
Process 3: General Clerk
1. Verify the item against the information in the pawn slip.
2. If correct, then proceed. If wrong, require appraiser to make the changes.
3. Prepare the pawn ticket and fill-up the necessary information.
4. Record the transaction in the Loan Extended (LE) Book.
5. Record the transaction in the Web Application.
6. Require the customer to sign in the pawn ticket and in the LE Book.
7. Forward the item, pawn slip and pawn ticket to the cashier.
8. Advise customer to wait for the proceeds.
9. End of Process
Process 4: Cashier
1. Scrutinize the received pawn item(s) if approved appraisal rate was followed. If not
followed, proceed to “step 2”
If in accordance with approved appraisal rate,
a. Check computations in the pawn ticket and pawn slip. If not correct, proceed to “step
2”. If correct, then proceed to “step 1.c.”
b. Safe keep the Jewelry together with the pawn slip
c. Release the net proceeds to the General Clerk together with the pawn tickets.
d. Record loan extended in the Daily Cash Report (DCR)
e. End of process.
2. If approved appraisal rate was not followed, require the appraiser to make adjustment so
it will comply with the approved appraisal rate. Then, go to “Process 1 – step 1.e.”
3. If the appraiser will insist on the amount, inform the area supervisor or operation officer
to resolve the issue or provide approving code.
a. If resolved, proceed to “step 1.c.”
b. If not resolved, go to “Process 2 – step 2”
Process 5: General Clerk
1. Require the customer to sign in the LE Book
2. Release the net proceeds to the customer together with the original copy of pawn ticket.
3. Forward the duplicate copy of pawn ticket to Accounting Office for Cebu file.
4. Safe keep the triplicate copy of pawn ticket for Branch file.
5. End of process
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Topic 5: Lost PT Transaction – JAWS
STAR
T
General Clerk
Custodian
Cashier
Process 1
Process 2
Process 4
Lost Receipt
Slip
Lost Receipt Slip
Lost Receipt Slip
Affidavit of Loss
Temporary Receipt
OR Original
OR Duplicate
OR Triplicate
Process 3
Lost Receipt Slip
Affidavit of Loss
Temporary
Receipt
File copy
of Branch
Process 5
Lost Receipt Slip
Affidavit of Loss
Temporary Receipt
END
OR Original
File copy
of Cebu
OR Duplicate
Process 1: General Clerk
1.
2.
3.
4.
Provide the customer with lost receipt slip.
Require the customer to write his/her name.
Require the customer to submit a valid identification card.
Scrutinize the signature and verify if he/she is really the owner.
- If he/she is the owner then proceed to next step. Otherwise, inform the customer
that the transaction is not honored.
5. Forward the valid identification card and lost receipt slip to the custodian of the pawn
item.
6. End of Process
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Process 2: Custodian
1. Receive the valid identification card and lost receipt slip from the General Clerk.
2. Search the item if still in the custody of the company.
a. If found, proceed to step 6. Otherwise, proceed to next step.
3. Search the item if it has already been redeemed. If already redeemed, proceed to next
step. Otherwise, proceed to step 5.
4. Gather redemption documents.
5. Inform the Operations Officer of the situation. Proceed to step 8.
6. Write the complete information in the lost receipt slip.
7. Forward the valid identification card and completed lost receipt slip to the General Clerk.
8. End of Process.
Process 3: General Clerk
1. Receive the valid identification card and completed lost receipt slip from the Custodian.
2. Give the valid identification card and completed lost receipt slip to the customer.
3. Require the customer to submit affidavit of loss.
4. Check detail in the affidavit of loss against the lost receipt slip.
5. Process temporary receipt containing the same information as in the pawn ticket.
6. Require the customer to pay temporary receipt fee (P20.00)
7. Forward the temporary receipt, cash, affidavit of loss and lost receipt slip to the cashier.
8. End of Process.
Process 4: Cashier
1. Receive the temporary receipt, cash, affidavit of loss and lost receipt slip from the
General Clerk.
2. Check the detail in the temporary receipt and affidavit of loss
3. Count the cash received and safe keep.
4. Prepare official receipt for the payment of temporary receipt fee.
5. Forward the original and duplicate official receipt, affidavit of loss, lost receipt slip and
temporary receipt to the General Clerk.
6. File the triplicate copy official receipt.
7. End of process.
Process 5: General Clerk
1. Receive the original and duplicate official receipt, affidavit of loss, lost receipt slip and
temporary receipt from the cashier.
2. Record the payment of temporary receipt fee transaction in the sales book.
3. Record the transaction in the Web Application.
4. Give the original official receipt and temporary receipt to the customer.
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5. Forward the affidavit of loss, lost receipt slip and duplicate official receipt to Accounting
Department for file of Cebu.
6. End of Process.
Topic 6: Redeem Transactions – JAWS (within expiry period)
General Clerk
Process 1
START
Cashier
Custodian
Process 3
Process 4
Process 5
Computation Slip
Computation Slip
Computation Slip
Return PT/TR
Return PT/TR
Return PT/TR
NO
OR Original
OR Original
OR Original
OR Duplicate
OR Duplicate
OR Duplicate
Pawn Slip
Pawn Slip
Inventory Tag
(if there is any)
Inventory Tag
(if there is any)
OR Triplicate
Valid
redeem
transactio
Appraiser
YES
Return PT
Process 2
File copy of
Branch
Computation Slip
Return PT/TR
Process 6
Computation Slip
Return PT/TR
OR Original
END
OR Duplicate
Pawn Slip
Inventory Tag
(if there is any)
File copy of
Cebu
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Process 1: General Clerk
1. Require the customer to surrender the original pawn ticket.
a. Determine if the person who redeems is the owner or a representative.
- If the person is the owner, then proceed to next step. Otherwise, proceed to Step
2.
b. Determine if the redemption date is within expiry period.
- If within expiry period then proceed. If not, it shall be treated as Redeemed Sales
(RDS) transaction.
c. Require the customer to submit a valid identification card.
d. Compare the signature in the identification card if same in the original pawn ticket.
- If the same, proceed to Process 2. If not, proceed to next step.
e. End of process.
2. Representative redeems the pawn item
a. Check the back of the original pawn ticket if signed by the owner that the
representative will redeem.
- If there is a signature then proceed to next step. Otherwise, proceed to step d.
b. Require the representative to submit a valid identification card.
- If valid, proceed to next step. Otherwise, proceed to step e.
c. Require the representative to sign the originalpawn ticket and proceed to Process 2.
d. Require the presence of the owner
e. Inform the representative that the transaction cannot be honored.
f. End of process
Process 2: General Clerk
1. Make computations based on pawn ticket.
2. Prepare computation slip.
3. Inform the customer of the amount to be paid.
4. Collect the payment of customer.
5. Forward the computation slip, return PT/temporary receipt (including attachments) and
cash to the cashier.
6. End of process
Process 3: Cashier
1. Receive the computation slip, return PT/temporary receipt (including attachments) and
cash from the General Clerk.
2. Scrutinize the content of the computation slip.
3. Count the money if correct amount.
4. Prepare and issue official receipt.
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5. Forward the computation slip, return PT/temporary receipt (including attachments) and
original and duplicate copy OR to the custodian.
6. File the triplicate copy official receipt.
7. End of process
Process 4: Custodian
1. Receive the computation slip, return PT/temporary receipt (including attachments) and
original and duplicate copy OR from the cashier.
2. Retrieve the pawn item in his/her custody.
3. Check the item against the details in the pawn ticket and official receipts.
- If pawn item is not found, inform the appraiser or area supervisor for action to be
done.
4. Check/test the item before it is released to the customer. (except sealed pawn items)
5. Forward the pawn item, original and duplicate OR, return pawn ticket/temporary receipt
(including attachments), inventory tag (if there is any), pawn slip and computation slip to
the General Clerk.
6. End of process
Process 5: General Clerk
1. Receive the pawn item, original and duplicate OR, return pawn ticket/temporary receipt
(including attachments), inventory tag (if there is any), pawn slip and computation slip
from the custodian.
2. Recheck the pawn item and the detail in the return pawn ticket.
3. Record the release of pawn item in the JS Form.
4. Require the customer to sign the JS Form.
5. Release the pawn item and original copy OR to the customer.
6. Stamp the return PT/temporary receipt (including attachments) with the word “PAID”
and date of redemption.
7. Forward the return PT/temporary receipt (including attachments), duplicate official
receipt, inventory tag (if there is any), pawn slip and computation slip to the Appraiser.
8. File and safe keep the JS Form.
9. End of Process
Process 6: Appraiser
1. Receive the return PT/temporary receipt (including attachments), duplicate OR, inventory
tag (if there is any), pawn slip and computation slip from the General Clerk.
2. Record the transaction in the Loan Paid (LP) Book.
3. Record the transaction in the Web Application.
4. Staple into one group the following documents:
- Return pawn ticket/Temporary receipt (including attachments)
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- Duplicate copy of OR
- Inventory Tag
- Pawn slip
- Computation Slip
5. Forward the above stapled document to Accounting Department for file copy of Cebu.
6. End of Process
Topic 7: Redeem Transactions – JAWS (beyond expiry date)
General Clerk
Process 1
STAR
T
Custodian
Process 3
Process 4
Process 5
Computation Slip
Computation Slip
Computation Slip
NO
Valid
redeem
transactio
Appraiser
Cashier
Return PT/TR
Return PT/TR
Return PT/TR
OR Original
OR Original
OR Original
OR Duplicate
OR Duplicate
OR Duplicate
Pawn Slip
OR Triplicate
Inventory Tag
(if there is any)
Pawn Slip
Inventory Tag
(if there is any)
YES
Process 2
Return PT
Computation Slip
File copy of
Branch
Return PT/TR
Process 6
Computation Slip
Return PT/TR
OR Original
END
File copy of
Cebu
OR Duplicate
Pawn Slip
Inventory Tag
(if there is any)
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Process 1: General Clerk
1. Require the customer to surrender the return pawn ticket.
a. Determine if the person who redeems is the owner or a representative.
- If the person is the owner, then proceed to next step. Otherwise, proceed to Step
2.
b. Determine if the redemption date is within expiry period.
- If beyond expiry period, proceed to next step. If not, it will be treated as ordinary
redemption transaction.
c. Request approval from Area Supervisor or Operations Officer.
- If approved, get approving code and proceed to next step. If not, proceed to step f.
d. Require the customer to submit a valid identification card.
e. Compare the signature in the identification card if same in the return pawn ticket.
- If the same, proceed to Process 2. If not, proceed to next step.
g. Inform the customer that the transaction cannot be honored.
h. End of process.
2. Representative redeems the pawn item
a. Check the back of the return pawn ticket if signed by the owner that the
representative will redeem.
- If there is a signature then proceed to next step. Otherwise, proceed to step d.
b. Require the representative to submit a valid identification card.
- If valid, proceed to next step. Otherwise, proceed to step e.
c. Require the representative to sign the return pawn ticket and proceed to Process 2.
d. Require the presence of the owner
e. Inform the representative that the transaction cannot be honored.
f. End of process
Process 2: General Clerk
1. Make computations based on pawn ticket.
Note: this transaction is treated as Redeem Sales (RDS)
2. Prepare computation slip.
a. Inform the customer of the amount to be paid.
- If customer requests to pay the amount in installment, do not proceed to next step
and treat the transaction as LAP Sales.
- If customer pays the whole amount, then proceed to next step.
b. Collect the payment of customer.
c. Forward the computation slip, return PT/temporary receipt (including
attachments) and cash to the cashier.
d. End of process
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Process 3: Cashier
1. Receive the computation slip, return PT/temporary receipt (including attachments) and
cash from the General Clerk.
2. Scrutinize the content of the computation slip.
3. Count the money if correct amount.
4. Prepare and issue official receipt.
5. Forward the computation slip, return PT/temporary receipt (including attachments) and
original and duplicate copy OR to the custodian.
6. File the triplicate copy official receipt.
7. End of process
Process 4: Custodian
1. Receive the computation slip, return PT/temporary receipt (including attachments) and
original and duplicate copy OR from the cashier.
2. Retrieve the pawn item in his/her custody.
3. Check the item against the details in the pawn ticket and official receipts.
- If pawn item is not found, inform the appraiser or area supervisor for action to be
done.
4. Check/test the item before it is released to the customer. (except sealed pawn items)
5. Forward the pawn item, original and duplicate OR, return pawn ticket/temporary receipt
(including attachments), inventory tag (if there is any), pawn slip and computation slip to
the General Clerk.
6. End of process
Process 5: General Clerk
1. Receive the pawn item, original and duplicate OR, return pawn ticket/temporary receipt
(including attachments), inventory tag (if there is any), pawn slip and computation slip
from the custodian.
2. Recheck the pawn item and the detail in the return pawn ticket.
3. Record the release of pawn item in the JS Form.
4. Require the customer to sign the JS Form.
5. Release the pawn item and original copy OR to the customer.
6. Stamp the return PT/temporary receipt (including attachments) with the word “PAID”
and date of redemption.
7. Forward the return PT/temporary receipt (including attachments), duplicate copy OR,
inventory tag (if there is any), pawn slip and computation slip to the Appraiser.
8. File and safe keep the JS Form.
9. End of Process
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Process 6: Appraiser
1. Receive the return PT/temporary receipt (including attachments), duplicate OR, inventory
tag (if there is any), pawn slip and computation slip from the General Clerk.
2. Record the RDS transaction in the Loan Paid (LP) Book.
3. Record the RDS transaction in the Sales Book.
4. Record the transaction in the Web Application.
5. Staple into one group the following documents:
6. Return pawn ticket/Temporary receipt (including attachments)
7. Duplicate copy of OR
8. Inventory Tag
9. Pawn slip
10. Computation Slip
11. Forward the above stapled document to General Clerk for file copy of Cebu.
12. End of Process
Topic 8: Renew Transactions – JAW (within the expiry period)
General Clerk
Process 1
STAR
Cashier
Custodian
Appraiser
Process 3
Process 4
Process 5
Computation Slip
Computation Slip
Computation Slip
Pawn Slip (new)
Pawn Slip (new)
OR Original
OR Original
OR Duplicate
NO
Valid
renew
transacti
on?
OR Duplicate
OR Original
OR Duplicate
Pawn Ticket
Pawn Ticket
OR Triplicate
Pawn Ticket
YES
Process 2
File copy of
Branch
Attached to
Pawn Item
Computation Slip
Return PT
Pawn slip (new)
Pawn Ticket
Process 6
Computation Slip
OR Original
END
OR Duplicate
File copy of
Cebu
Pawn Ticket
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Process 1: General Clerk
1. Require the customer to present the return pawn ticket.
a. Check if the pawn item was already expired.
- If not expired, proceed to next step. If expired, treated as Renew Sales (RNS)
Transaction. (POG 008a)
b. Require the customer to submit a valid identification card.
c. Compare the signature in the identification card if the same in the return pawn ticket.
- If the same, proceed to Process 2. If not, proceed to next step.
d. Inform the customer that the transaction is not honored.
e. End of process.
Process 2: General Clerk
1. Make computations based on return pawn ticket.
2. Stamp the back portion of the return ticket with the following:
- Date when extension is granted (Date renewed)
- New Maturity Date (1 month from date renewed)
- New Expiry Date (4 months from date renewed)
3. Put a suffix “E” to the Pawn Ticket number and a number showing how many times the
Pawn is renewed. Ex. PT# -> E#, E1, E5, E22
4. Prepare a computation slip.
5. Inform the customer of the amount to be paid.
6. Collect the payment of customer.
7. Forward the new pawn slip, computation slip, return pawn ticket/temporary receipt
(including attachments) and cash to the cashier.
8. End of process
Process 3: Cashier
1. Receive the new pawn slip, computation slip, return pawn ticket/temporary receipt
(including attachments) and cash from the General Clerk.
2. Scrutinize the content of the computation slip.
3. Count the money if correct amount.
4. Prepare official receipt for the payment of customer.
5. Forward the new pawn slip, computation slip, return pawn ticket/temporary receipt
(including attachments) and original and duplicate copy of official receipt to the
custodian.
6. File the triplicate official receipt.
7. End of process
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Process 4: Custodian
1. Receive the new pawn slip, computation slip, return pawn ticket/temporary receipt
(including attachments) and original and duplicate copy of official receipt from the
cashier.
2. Attach the new pawn slip to the pawn item.
3. Forward the original and duplicate official receipt, return pawn ticket/temporary receipt
(including attachments) and computation slip to the General Clerk.
4. End of process
Process 5: General Clerk
1. Receive the original and duplicate copy OR, return PT/temporary receipt (including
attachments) and computation slip from the custodian.
2. Release the original official receipt and renewed return pawn ticket/temporary receipt
(including attachments) to the customer.
3. Record the renewal transaction in the Loan Extended (LE) Book.
4. Record the renewal transaction in the Web Application.
5. Forward the duplicate official receipt and computation slip to the Appraiser.
6. End of Process
Process 6: Appraiser
1. Receive the duplicate official receipt and computation slip from the General Clerk.
2. Record the interest payment transaction in the Loan Paid (LP) Book.
3. Record the interest payment transaction in the Web Application.
4. Staple into one group the following documents:
- Duplicate copy OR
- Computation Slip
5. Forward the above stapled document to Accounting Department for file copy of Cebu.
6. End of Process
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Topic 9: Renew Transactions – JAW (beyond the expiry period)
General Clerk
Process 1
START
Cashier
Custodian
Appraiser
Process 3
Process 4
Process 5
Computation Slip
Computation Slip
Computation Slip
Pawn Slip (new)
Pawn Slip (new)
OR Original
OR Original
OR Duplicate
NO
Valid
renew
transacti
OR Duplicate
Pawn Ticket
OR Original
OR Duplicate
Pawn Ticket
Pawn Ticket
OR Triplicate
YES
Process 2
Computation Slip
Return PT
Pawn slip (new)
File copy
of Branch
Attached
to Pawn
Item
Pawn Ticket
Process 6
Computation Slip
OR Original
OR Duplicate
Pawn Ticket
File copy
of Cebu
END
Process 1: General Clerk
1. Require the customer to present the return pawn ticket.
a. Check if the pawn item was already expired.
- If expired, proceed to next step. If not, treated as ordinary renewal.
b. Require the customer to submit a valid identification card.
c. Compare the signature in the identification card if the same in the return pawn ticket.
- If the same, proceed to Process 2. If not, proceed to next step.
d. Inform the customer that the transaction is not honored.
e. End of process.
Process 2: General Clerk
1. Make computations based on return pawn ticket.
(take note of other charges)
2. Stamp the back portion of the return ticket with the following:
- Date when extension is granted (Date renewed)
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a.
b.
c.
d.
e.
f.
- New Maturity Date (1 month from date renewed)
- New Expiry Date (4 months from date renewed)
Put a suffix “E” to the Pawn Ticket number and a number showing how many times
the Pawn is renewed.
Prepare a computation slip.
Inform the customer of the amount to be paid.
Collect the payment of customer.
Forward the new pawn slip, computation slip, return pawn ticket/temporary receipt
(including attachments) and cash to the cashier.
End of process
Process 3: Cashier
1. Receive the new pawn slip, computation slip, return PT/temporary receipt (including
attachments) and cash from the General Clerk.
2. Scrutinize the content of the computation slip.
3. Count the money if correct amount.
4. Prepare official receipt for the payment of customer.
5. Forward the new pawn slip, computation slip, return PT/temporary receipt (including
attachments) and original and duplicate copy OR to the custodian.
6. File the triplicate official receipt.
7. End of process
Process 4: Custodian
1. Receive the new pawn slip, computation slip, return PT/temporary receipt (including
attachments) and original and duplicate copy of OR from the cashier.
2. Attach the new pawn slip to the pawn item.
3. Forward the original and duplicate OR, return PT/temporary receipt (including
attachments) and computation slip to the General Clerk.
4. End of process
Process 5: General Clerk
1. Receive the original and duplicate copy OR, return PT/temporary receipt (including
attachments) and computation slip from the custodian.
2. Release the original official receipt and renewed return PT/temporary receipt (including
attachments) to the customer.
Note: RNS transaction shall be treated as the original loan was redeemed and a new
pawn transaction happened.
3. Record in the sales book the RNS transaction of pawn item beyond expiry period. Record
in the Loan Extended (LE) Book the RNS transaction. (Assumption: new pawn
transaction happened)
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4. Record the RNS transaction in the Web Application.
5. Forward the duplicate copy OR and computation slip to the Appraiser.
6. End of Process
Process 6: Appraiser
2. Receive the duplicate OR and computation slip from the General Clerk.
3. Record the RNS transaction in the Loan Paid (LP) Book. (Assumption: old transaction
was redeemed)
4. Record the RNS transaction in the Web Application.
5. Staple into one group the following documents:
- Duplicate copy OR
- Computation Slip
6. Forward the above stapled document to Accounting Department for file copy of Cebu.
7. End of Process
Topic 10: Foreclosure to Display/out (AWS)
Custodian
STAR
Process 1
Delivery Receipt
Inventory Count
Sheet
Appraiser
Process 2
Process 4
Process 3
Delivery Receipt
Delivery Receipt
Delivery Receipt
Inventory Count
Sheet
Inventory Count
Sheet
Inventory Count
Sheet
Defective Item
Custodian
Process 5
General Clerk
Area Supervisor
Display Custodian
NO
Displayab
le?
YES
Process 6
File copy
of Cebu
END
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Appliances
Watches
Sensitive Items
Process 1: Appliance Custodian
1. Identify foreclosed items
2. Prepare Inventory Count Sheet (ICS)
3. Prepare Delivery Receipt (DR)
4. Forward ICS and DR to Appraiser
5. Request the appraiser to check the
foreclosed appliances
6. End of process
Process 1: Cashier/Vault Custodian
1. Identify foreclosed items
2. Prepare Inventory Count Sheet
(ICS)
3. Prepare Delivery Receipt (DR)
4. Forward the foreclosed watches,
ICS and DR to Appraiser
6. End of process
Process 1: Small Vault Custodian
1. Identify foreclosed items
2. Prepare Inventory Count Sheet
(ICS)
3. Prepare Delivery Receipt (DR)
4. Forward the foreclosed
Sensitive Items, ICS and DR to
Appraiser
6. End of process
Process 2: Appraiser
1. Receive the ICS and DR from Appliance
Custodian
2. Check the foreclosed appliances
according to:
- functionality
- appearance
- salability
3. Make a reappraisal findings according
to:
- functionality
- appearance
- salability
4. Forward the reappraisal findings, ICS
and DR to Area Supervisor.
5. End of process
Process 2: Appraiser
1. Receive the foreclosed watches,
ICS and DR from Cashier
2. Check the foreclosed watches
according to:
- functionality
- appearance
- salability
3. Make a reappraisal findings
according to:
- functionality
- appearance
- salability
4. Forward the foreclosed watches,
reappraisal findings, ICS and DR to
Area Supervisor.
5. End of process.
Process 2: Appraiser
1. Receive the foreclosed sensitive
item, ICS and DR from Small Vault
Custodian
2. Check the foreclosed sensitive
items according to
- functionality
- appearance
- salability
3. Make a report of findings
according to:
- functionality
- appearance
- salability
4. Delete all files in the memory of
the item.
5. Forward the foreclosed
sensitive
item,
reappraisal
findings, ICS and DR to Area
Supervisor.
6. End of process.
Process 3: Area Supervisor
1. Receive the reappraisal findings, ICS
and DR from Appraiser.
2. Provide pricing on “for display
appliance” based on pricing bracket.
Process 3: Area Supervisor
1. Receive the foreclosed watches,
reappraisal findings, ICS and DR from
Appraiser
2. Segregate the items if it is (a) for
Process 3: Area Supervisor
1. Receive the foreclosed sensitive
items, reappraisal findings, ICS
and DR from Appraiser
2. Segregate the items if it is (a)
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3. Send an email to the Chief Finance
Officer the list of displayable items with
recommended price and wait for the
approving code.
4.. Forward the reappraisal findings, ICS
and DR to General Clerk.
5. End of process
display, (b) defective – scrap or (c)
defective – can be repaired.
3. Provide pricing on “for display
watches” based on pricing bracket.
4. Send an email to the Chief Finance
Officer the list of displayable items
with recommended price and wait for
the approving code.
5. Forward the foreclosed watches,
reappraisal findings, ICS and DR to
General Clerk
6. End of process
for display, (b) defective – scrap or
(c) defective – can be repaired.
3. Provide pricing on “for display
sensitive items” based on pricing
bracket.
4. Send an email to the Chief
Finance Officer the list of
displayable
items
with
recommended price and wait for
the approving code.
5. Forward the foreclosed
sensitive
items,
reappraisal
findings, ICS and DR to General
Clerk
6. End of process
Process 4: General Clerk
1. Receive the reappraisal findings, ICS
and DR from Area Supervisor.
2. Prepare price tags for displayable
items
3. Forward custody of non-displayable
appliance (defective items) to defective
custodian.
4. Update Web Application on items for
display or defective (FVK)
5. Forward reappraisal findings, ICS and
DR to Accounting Department for file
copy of Cebu
Process 4: General Clerk
1. Receive the foreclosed watches,
reappraisal findings, ICS and DR from
Area Supervisor.
2. Prepare price tags for display items
3. Forward non-displayable watches
(defective items) to defective
custodian.
4. Update Web Application on items
for display or defective. (FVK)
5. Forward displayable watches to
display custodian.
6. Forward reappraisal findings, ICS
and DR to Accounting Department for
file copy of Cebu
Process 4: General Clerk
1. Receive the foreclosed sensitive
items, reappraisal findings, ICS
and DR from Area Supervisor.
2. Prepare price tags for display
items
3.
Forward
non-displayable
sensitive items (defective) to
defective custodian.
4. Update Web Application on
items for display or defective.
(FVK)
5. Forward displayable sensitive
items to display custodian.
6. Forward reappraisal findings,
ICS and DR to Accounting
Department for file copy of Cebu
Process 5: Display Custodian
1. Get the appliances from General Clerk.
2. Record the received displayable
appliances to display log book.
3. Check the appliances and price tags
4. Display the appliances in the
designated area of the outlet.
Process 5: Display Custodian
1. Receive the displayable watches
from General Clerk
2. Record the received displayable
watches to display log book.
3. Check the watches and price tags
4. Display the watches in the
Process 5: Display Custodian
1. Receive the displayable
sensitive items from General Clerk
2. Record the received displayable
sensitive to display log book.
3. Check the sensitive items and
price tags
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5. End of process
showcase.
5. End of process
4. Display the sensitive items in
the showcase.
5. End of process
Process 6: Defective Custodian
1. Receive the defective appliance from
General Clerk
2. Identify items for repair and process
repair services.
3. Keep safe beyond repair items until
sold as scrap.
4. End of process
Process 6: Defective Custodian
1. Receive the defective watches
from General Clerk
2. Identify items for repair and
forward to Cebu
3. Keep safe beyond repair watches
until sold as scrap.
4. End of process
Process 6: Defective Custodian
1. Receive the defective sensitive
items from General Clerk
2. Identify items for repair and
process repair services.
3. Keep safe beyond repair
sensitive items until sold as scrap
4. End of process
Topic 11: Foreclosure to Display/Transfer-out (Jewelries)
STAR
Custodian
Display Custodian
Process 1
Process 2
ICS
DR (3 copies)
Area Supervisor/
Operation Officer
Process 3
ICS
ICS
DR (2&3)
DR 1
DR(2&3)
Reappraisal
Charge Form
General Clerk
Process 5
Price tag
ICS
DR (2 & 3)
Process 4
ICS
DR(2&3)
File copy
of Cebu
Process 7
DR 2
Process 6
Price Tag
Process 8
END
DR 2
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Process 1: Cashier/Vault Custodian
1. Identify foreclosed pawn items based on pawn slips
2. Fill up an inventory count sheet (ICS) containing the following information:
a. Date
b. Detail of foreclosed jewelries
c. Pawn Ticket No.
d. Quantity
e. Principal amount
3. Record the foreclosed items in the Foreclosed Book.
Note: Recording of Foreclosed items in the Foreclosed Book will be on the first day
following the expiry date (POG No. 009)
4. Make Delivery Receipt (DR) of foreclosed Jewelries.
5. Forward the foreclosed Jewelries, ICS and DR to Display Custodian.
6. Email the General Manager/Owner of the details of the foreclosed Jewelries forwarded to
the Display Custodian. The email must contain the following information: month,
quantity, principal, DR date, DR number and delivered by.
7. End of Process
Process 2: Display Custodian
1. Receive the foreclosed Jewelries, ICS and DR from Cashier/Vault Custodian
2. Print list of foreclosed items from web application and compare with the ICS from the
custodian.
a. If the same, proceed to next step
b. If not, return to custodian and require him/her to reconcile
3. Update web application of the foreclosed items and changes in its details, if there is any
after reappraisal.
4. Check the foreclosed items if complete as stated in the delivery receipt.
5. If complete, acknowledge the receipt of the article. Otherwise, call the attention of the
Cashier and inform him/her of the discrepancy.
6. Affix signature in the DR and give the cashier/vault custodian one copy.
7. Update the Web Application on the foreclosed jewelries.
8. Request the Area Supervisor/Operations Officer to reappraise the foreclosed Jewelries
9. Forward the ICS and DR to the Area Supervisor/Operations Officer
10. End of Process.
Process 3: Area Supervisor/Operations Officer
1. Receive the ICS and DR from the Display Custodian
2. Reappraise the foreclosed Jewelries
3. If there is any discrepancy (over-appraisal) of the item, make a reappraisal charge form.
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4.
5.
6.
7.
8.
Require the Appraiser to acknowledge the over-appraisal that he/she has committed.
Send the acknowledged charge form to the owner/FVK
Sign the ICS and DR to confirm that reappraisal was already performed.
Forward the ICS and DR to Display Custodian.
End of Process
Process 4: Display Custodian
1. Receive the ICS and DR from Area Supervisor/Operation Officer.
2. Check item if complete. Otherwise, inform the AS/OO of the difference.
3. Get advice from FVK or GM/MNAK if they opt to pull out the item.
a. If they opt to pull out, use inventory transfer out procedures.
b. If not, then proceed.
4. Request the assigned staff to process cleaning and “durar” procedures.
5. Segregate the Jewelries according to (a) for display or (b) not displayable
a. If for display, proceed to step 7.
b. If not displayable, proceed to next step.
6. Update the Web Application on the status of the foreclosed jewelry (if for display or notdisplayable)
7. Forward the not displayable jewelries to cashier for safekeeping while waiting for pullout.
8. Take pictures of the “for display” jewelries and email to FVK.
9. Forward the “for display” jewelries, ICS and DR to General Clerk.
10. End of Process.
Process 5: General Clerk
1. Receive the “for display” jewelries, ICS and DR from Display Custodian.
2. Make a list of jewelry items for display.
3. Forward the list to operations officer for pricing.
(Note: Pricing needs an approving code from the Chief Finance Officer before it can be
displayed)
4. Make price tags and color code the tags.
5. Take pictures of the jewelries with tags and send to Mnak/FVK for viewing thru Web.
6. Update the Web Application on the prices of displayable jewelries.
7. Forward the jewelries to display custodian.
8. Require him/her to count the tagged Jewelries and acknowledge receipt of the item in the
list of Jewelry items for display.
9. Forward the ICS, list of jewelry items for display and DR to Accounting Department for
file copy of Cebu.
10. End of Process
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Process 6: Display Custodian
1. Receive the jewelries with tags, ICS and DR from General Clerk.
2. Check the jewelries if complete and properly tagged.
3. Acknowledge receipt of the item in the list Jewelry items for display.
4. Record the newly received jewelries in the display inventory log book.
5. Display the jewelries in the showcase.
6. End of process.
Process 7: Cashier/Custodian
1. Receive the defective jewelries from display custodian.
1. Prepare DR of defective jewelry.
2. Send a copy of delivery report (DR) to Butuan outlet and Cebu.
Note: For security reasons, transfers of jewelries are scheduled by management.
3. Seal in a bag the defective jewelries together with the DR.
4. Safe keep the defective jewelries until pulled-out (transferred out)
During pull-out
5. Prepare the safe-kept jewelries to be pulled out.
6. Forward the jewelry and DR to display custodian.
7. End of process.
Process 8: Display Custodian
1. Receive the sealed defective jewelries from cashier/custodian.
2. Record in the display custodian book the jewelries to be pulled out.
3. Request appraiser to check the defective jewelries based on DR and ICS.
4. Require the appraiser to sign the display custodian book if complete.
5. Update the Web Application on the release of Jewelries to authorized personnel.
6. Release the jewelries to authorized personnel.
7. Email the General Manager on the pulled-out item.
8. End
Note: Process will also apply when display jewelries are pulled-out by Management.
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Topic 12: Inventory In to Display (JAWS)
Appraiser/
Area Supervisor
General Clerk
Process 1
Process 2
Process 3
DR
DR
DR
Custodian
START
Display
Custodian
Process 4
END
File copy
of Cebu
Jewelries
Appliances
Process
1:
Vault
Custodian/Cashier
1. Receive the jewelries
and DR from other outlet
personnel
2. Check number of
articles transferred-in and
its description if complete
and correct based on DR.
3. Signify in the DR if the
articles are complete and
description is correct.
4. Forward the article and
DR to area supervisor for
reappraisal and pricing.
5. End of process
Process 1: Appliance
Custodian
1. Receive the appliances
and DR from other outlet
personnel
2. Check number of
appliances transferred-in
and its description if
complete and correct
based on DR.
3. Signify in the DR if the
appliances are complete
and description is correct.
4. Forward the DR to
Appraiser for reappraisal.
5. End of process
Watches
Process 1: Cashier
1.
Receive
the
watches and DR from
other outlet personnel
2. Check number of
watches transferred-in
and its description
based on DR
3. Signify in the DR if
the
watches
are
complete
and
description is correct
4. Forward the article
and DR to Appraiser
for reappraisal
5. End of process
Sensitive Items
Process 1: Small Vault
Custodian
1. Receive the sensitive
items
from
other
outlets personnel
2. Check number of
sensitive
items
transferred-in and its
description based on
DR.
3. Signify in the DR if
the sensitive items are
complete
and
description is correct.
4. Forward the article
and DR to Appraiser
for reappraisal.
5. End of process
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Process
2:
Area
Supervisor
1. Receive the article and
DR
from
vault
custodian/cashier
2. Reappraise the jewelries
3. Provide pricing of the
jewelries
4. Forward the article and
DR to General Clerk
5. End of process
Process 2: Appraiser
Process 2: Appraiser
Process 2: Appraiser
1. Receive the DR from
appliance custodian.
2. Check the functionality
of the appliance
3. Check the salability of
the appliance
4. Request pricing from
Area Supervisor
5. Forward the pricing
and DR to General Clerk
6. End of process
1. Receive the watches
and DR from vault
custodian/cashier
2. Check functionality
of the watch
3. Check salability
4. Check authenticity
5. Request pricing
from Area Supervisor
6.
Forward
the
watches, pricing and
DR to General Clerk
7. End of process
1. Receive the sensitive
items from small vault
custodian.
2. Check functionality
of the sensitive item
3. Check salability
4. Check authenticity
5. Check and erase file
in the memory
6. Request pricing from
Area Supervisor
7.
Forward
the
sensitive items, pricing
and DR to General
Clerk.
8. End of process
Process 3: General Clerk
Process 3: General Clerk
1. Receive the article and
DR from Area Supervisor
2. Make price tags and
attach it to the item
3. Update the Web
Application
4. Forward the article and
DR to display custodian.
5. Forward the DR to the
Accounting
Department
for file copy of Cebu
6. End of process
1. Receive the DR and
pricing
from
the
Appraiser.
2. Make price tags of the
item.
3.
Update
Web
Application
on the
transfer-in
4. Forward the DR and
price tags to the display
custodian
5. Forward the DR to the
Accounting Department
for file copy of Cebu
6. End of process
Process 3: General
Clerk
1.
Receive
the
watches, DR and
pricing
from
the
Appraiser.
2. Make price tags
and attach it to the
item
3. Update the Web
Application
4.
Forward
the
watches, DR and price
tags to the display
custodian
5. Forward the DR to
the
Accounting
Department for file
copy of Cebu
6. End of process
Process 3: General
Clerk
1. Receive the sensitive
items, DR and pricing
from the Appraiser.
2. Make price tags and
attach it to the item
3. Update the Web
Application
4.
Forward
the
sensitive items, DR and
price tags to the display
custodian.
5. Forward the DR to
the
Accounting
Department for file
copy of Cebu
6. End of process
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Process
4:
Display
Custodian
1. Receive the article and
DR from General Clerk
2. Check if the articles are
complete and properly
tagged.
3. Record the new display
articles in the display log
book
4. Display the articles in
the showcase
5. End of process
Process
4:
Display
Custodian
1. Receive the DR and
price tags from the
General Clerks
2. Check if the appliances
are complete.
3. Request the appliance
custodian to place it in the
designated
area
for
display.
4. Attach the price tag
5. Record the new display
in the Display Log Book.
6. End of process
Process 4: Display
Custodian
1.
Receive
the
watches and DR from
General Clerk
2. Check if the items
are complete and
properly tagged.
3. Record the new
display watches in the
display log book
4. Display the watches
in the showcase.
5. End of process
Process 4: Display
Custodian
1. Receive the sensitive
items and DR from
General Clerk
2. Check if the items
are
complete
and
properly tagged.
3. Record the new
display items in the
display log book.
4. Display the sensitive
items in the showcase.
5.. End of process
Topic 13: Cash Sales (JAWS)
Display Custodian
START
Process 1
Sales Slip
Cashier
General Clerk
Process 2
Process 2
Duplicate Copy OR
Sales Slip
Original OR
Sales Slip
Duplicate OR
Triplicate OR
Process 3
END
Original OR
File copy of
Branch
File copy of
Cebu
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Process 1: Display Custodian
1. Close the sale with the customer
2. Make sale slip containing description of the item and the price
3. Collect the payment of customer
4. Forward the sale slip and cash to the cashier.
5. End of process
Process 2: Cashier
1. Receive the sale slip and cash from display custodian
2. Count the cash and compare with sales slip
3. Prepare and issue OR
4. Forward the sale slip, original and duplicate copy OR to display custodian.
5. End of process
Process 3: Display Custodian
1. Receive the sale slip, original and duplicate copy OR from cashier.
2. Prepare the sold item and detach the price tag.
3. Compare the item against description in the price tag
4. Release the item and original copy official receipt to the customer.
5. Attach the sales slip and price tag in the duplicate copy OR.
6. Record the transaction in the Sales Book.
7. Forward the duplicate copy OR, sales slip and price tag to General Clerk.
8. End of Transaction
Process 4: General Clerk
1. Receive the duplicate copy OR with sales slip and price tag from the Display Custodian.
2. Update the Web Application.
3. Forward the documents to Accounting Department for file copy of Cebu.
4. End of Process.
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Topic 14: LAP Sales (JAWS)
Display Custodian
Process 1
START
LAP Sales Slip
LAP Card (2 copies)
Cashier
General Clerk
Process 2
Process 4
OR (Original & Duplicate)
Duplicate Copy OR
LAP Card (2 copies)
OR 3
LAP Sales Slip
Process 3
Original Copy OR
END
LAP Card 1
LAP Card 2
File copy of
Branch
File copy of
Cebu
Process 1: Display Custodian
1. Close the sale with the customer
2. Inform the customer of the Terms and Conditions
3. Prepare LAP Card and fill-up the necessary information in the card
4. Make LAP description slip containing description of the LAP item, transaction date and LAP
card number
5. Require the customer to sign the LAP description slip
6. Collect the down payment from customer
7. Prepare the LAP item
8. Forward the cash, LAP description slip, LAP card and LAP item to the cashier
9. End of process
Process 2: Cashier
1. Receive the cash, LAP description slip, LAP card and LAP item from display custodian
2. Count the cash and compare with LAP sales slip
3. Check description in the LAP card and the LAP item
4. Safe keep the LAP item and attach the LAP description slip
5. Prepare and issue OR
6. Fill-up payment detail in the LAP card
7. Forward the LAP card, original and duplicate copy OR to display custodian.
8. Forward the Duplicate copy OR to General Clerk.
9. End of process
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Process 3: Display Custodian
1. Receive the LAP card, original and duplicate copy OR from cashier.
2. Record the transaction in the sales book
3. Update the Web Application
4. Release the LAP card (customer copy) and the original copy official receipt to the customer.
5. Forward the duplicate copy OR to Accounting Department for file of Cebu.
6. File and Safe keep the LAP card (branch copy)
8. End of Transaction
Topic 15: Preparation of Periodic Reports
Responsible Person
Name of Report
1. Cashier/Vault custodian Daily Cash Report
Bank Balance Reconciliation
Foreclosed Jewelries and Watches
2. General Clerk
Loan Extended Summary
Frequency
Daily
Monthly
Monthly
Monthly
3. Small vault Custodian
4. Appliance Custodian
5. Display Custodian
Monthly
Monthly
Weekly
Foreclosed Sensitive Items
Foreclosed Appliances
Jewelries and Sensitive Items (JS)
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Module 3
Pawnshop Operation: Appraisal
Objectives: At the end of this Training Module, the participants are expected to:
 Be oriented with the processes involved in appraising pawned items
 Learn how to assess authenticity, functionality and condition
 Learn how to verify ownership of appliances
Materials/Equipment Needed: Ppt Presentation Materials, Laptop/Computer, LCD Projector,
Hand-outs, Notepads, Pens, Calculators
Topic 1: Watches
In accepting watches, following items needs to be considered:
1. Find out if the item is listed in the acceptable watches of the company.
- Do not accept Divers watch 150m
- Quartz watches are referred to the Operations Officer or Area Supervisor when
appraisal is above P300.
- Classified into (a) new) or (b) slightly used.
- For a more accurate information, refer to Memo on Suggested Appraisal Rates for
Watches effective September 5, 2014
- Watch out for the “Don’ts”
2. Common parts of a wrist watch.
a. Aperture
A small opening. The dials of some watches (in French: montres
à guichet) have apertures in which certain indications are given
(e.g. the date, the hour, etc).
b. Applique
Applique or applied characters are numerals or symbols cut out of
sheet metal and stuck or riveted to a dial.
c. Watch Case
A container that protects the watch-movement from dust, damp
and shocks. It also gives the watch as attractive an appearance as
possible, subject to fashion and the taste of the public.
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d. Crown
Knurled knob located on the outside of a watch case and used for winding the
mainspring. It is also used for setting the hands to the right time and for correcting the
calendar indications.
e. Glass, Crystal
Thin plate of glass or transparent synthetic material (usually
synthesized sapphire), for protecting the dials of watches, clocks,
etc.
f. Hand
Indicator, usually made of a thin, light piece of metal, very variable in form, which
moves over a graduated dial or scale. Watches usually have three hands showing the
hours, minutes and seconds.
g. Case Back
3. Assessing Authenticity
a. Check the appearance of the item. It is necessary to use a loupe to detect most of the
following qualities of an acceptable/genuine wrist watch:
- No obvious scratches in the glass, watch case, case back or strap.
- No marks of opening in the case back (specially, if the watch is automatic)
- No smeared inscriptions, unclear engravings, typographical errors and letter
substitutions.
- The glass and display is crystal clear
- Applique or brand name is perfectly carved.
b. Check the functionality of the watch.
- Check the crown/button if it’s functioning well (fine tuning)
- Check if the dates can be set properly and perfectly.
- Watch hands functions perfectly even after rotating it back and forth by 360°.
- Check display or crown if it’s attached perfectly.
- The sweep of the seconds’ hand glides effortlessly.
4. Assessing Salability
In assessing salability of wrist watches, the following market demand factors needs to be
considered:
- Unique features (water resistant, alarm, heart rate monitor, stop watch, light,
atomic or radio controlled)
- Materials leather or silicon strap, titanium, gold, stainless steel, platinum)
- Quality (weight, movement or sweep, name)
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-
Condition (functioning properly/perfectly)
Known Branding (Rolex, Seiko, Rado and etc.)
Topic 2: Sensitive Items/Small Vault Items
In accepting sensitive items, following points needs to be considered:
1. Find out if the item is listed in the acceptable small vault items.
- For mobile phones, check first the IMEI. Dial *#06# and search in the Net.
- No additional value even if the pawn item includes accessories
- Mobile phone shall not be accepted when the casing is broken or cracked and
screws have scratches (use loupe)
- All mobile phones manufactured 2009 and below are not accepted.
- Mobile phones made in Finland are not accepted.
- Phone passwords must be turned off.
(Refer to Memo on Suggested Appraisal Rates for Watches effective September 5, 2014)
2. Assessing Authenticity
a. Check the appearance of the sensitive item
- On first glance a counterfeit phone may appear identical to a genuine model. On
closer comparison you may be able to identify some obvious differences between
a genuine and a fake such as: the color, location of buttons, size or spelling of the
brand name. Some fakes are less obvious. Counterfeiters are able to mimic design
details down to minute details, making it difficult to tell if a phone is genuine. If
you are able to view the actual product you may be able to notice a difference in
weight, screen size, location of buttons and battery, quality of printing and paint
finish, added or missing functions, quality control stickers and holograms and an
overall lack of quality.
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Example:
Findings/Observations:
1. The screen is made of cheap glass material.
2. The screen is too far from the edge.
3. The screen is not as bright and vibrant as the original devices.
4. Some of the sensors are not available.
5. The Home button is not on the exact same spot as that of the genuine item.
6. The logos are not smoothed out and can be felt; rubbing it will also remove the
logo.
7. The device's proportions differ than that of the genuine product.
8. Gaps between parts like the home, power, and volume buttons are obvious.
9. When the battery cover is opened, some of the small components do not match
with the original one.
10. The phone does not have a seal from National Telecommunications Commission
(NTC)
Functionality of the sensitive item
- Black market phones are made from sub-standard and cheap components and
often run on 2nd rate or pirated operating systems. Counterfeiters use cheap older
generation chipsets, which may offer the same functionality as a genuine model
but at far slower processing speeds. If you have unknowingly purchased a fake
phone you will realize very quickly once you turn it on. Processing speeds are
often much slower, operating systems have missing features and the phone may
not be compatible with affiliated software and applications.
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-
Counterfeit phones can have differing features to genuine models, such as dual
SIM cards, analogue TV etc. Check the model number and technical
specifications of the genuine phone you wish to buy and ensure they match what
is being offered. Counterfeit phones also often appear to offer features that are
either just not there or that are not as they are said to be. For example, built in
cameras might be said to be 8 Megapixel when they are not - or offer GPS when
they don't. Counterfeit phones may also differ from a genuine in color
availability, memory capacity, camera megapixels, screen quality and operating
system. It is important to compare technical features to ensure the phone is
genuine.
Registration number/IMEI
- Every genuine mobile phone has a serial number to register it to a carrier network.
This number is called the International Mobile Equipment Identity (IMEI)
number. The IMEI number can be used to verify the legitimacy of a phone. Often
counterfeit models won’t have an IMEI number or use a fake one. If you are
viewing the phone in person then you can find the IMEI number on the products
packaging, under the phones battery or by pressing *06 on the phone. If you are
not viewing the phone in person then you should ask the retailer for the phones
IMEI number. To check the legitimacy of a phones IMEI number and any
information regarding country of production, manufacturer and model type, you
can use this tool.
Example:
- Type *#06# and press Dial button [the
green
one]
After doing this, you will see a 15 digit
IMEI code, like 154796009526653.
Then you have to check only the seventh
and eighth digit of the 15 digit IMEI code.
Only by checking the 7th and 8th digit you
can verify whether your mobile phone is
original
or
not
?
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-
_________
Determine if the image in the photo looks real. Knowing the actual features, size,
and colors of a tablet can help you assess more easily spot a fake.
Find out if the model is legitimate. Some counterfeit sellers offer a lineup of
devices, each with their own unique model numbers. Counterfeit sellers will
sometimes use a fake model number to try to pass off their own goods as the real
thing.
Steps in assessing mobile phones
a. Turn on or off (require the customer to turn off the password)
b. Test the camera and record
c. Test voice recorder to check the microphone
d. Test with a different SIM cards to determine network lock (lower appraisal for
units with network lock)
e. Check charger and battery
f. Check if complete necessary accessories
For apple gadgets
g. Let the customer turn-off the passcode
h. Go to settings scroll down and click ICLOUD
i. Require the customer to delete his/her account in ICLOUD (explain properly
why we do this)
Topic 3: Appliance and Bulky Items
In accepting appliances/bulky items, following points needs to be considered:
1. Find out if the item is listed in the acceptable appliances/bulky items.
- For an accurate information, refer to Memo on Suggested Appraisal Rates for
Watches effective September 5, 2014
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2. Verify Ownership (for specific items)
a. LCD/LED TV
- Ask for receipt if Cash and Certificate of Ownership if Installment
b. Motorcycle
- Ask for original certificate of registration and updated official receipt
- Name on OR & CR must be the same as pawner’s name and driver’s license
- Ask for drivers license
- LTO code of CR must be within the area
3. Assess the salability of the item in case the owner/pawner will not redeem the item.
a. Check the appearance
- No visible rust and defective parts
b. Check Functionality
- Functions properly
- Test run the item for 30 minutes
Topic 4: Jewelries
In accepting sensitive items, following points needs to be considered:
1. Find out if the item is listed in the acceptable Jewelries.
a. Gold and Diamonds only are accepted
b. Do not accept Bracelet/Chain with big colored stones. However, it can be accepted if
the appraisal is on gold part of the item.
c. Do not give value to Brown/Black Diamonds
d. School rings accepted it is 18K and above (Suarez & VEI made only)
e. Classified as Class A if:
- No cleaning nor repair needed
- No plating needed
- Mostly machine made
- New design
f. Classified as Class B if:
- Slight repair needed
- Needs cleaning
- Needs plating
- Handmade or machine made
g. Classified as Scrap if:
- Broken (two or more sinumpayan)
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- Jewelries with big stones
- Old design
- Obvious soldered parts
- Singaporean (twisted) chain
h. For an accurate information, refer to Memo on Suggested Appraisal Rates for
Watches effective September 5, 2014
GOLD
-
Gold readings are 24K, 22K, 20K, 18K, 14K, 12K and 10K
Use black stone and acid test method in reading Gold Karats
CLASSIFICATION OF GOLD
Gold regardless of where it originated from whether in Asia, Middle East and America are
practically identical because they have a definite chemical composition and definite physical
property bounded by an orderly internal structure.
However, with the addition of alloy, we could classify it in several categories;
1. Yellow Gold – named due to distinctive yellow color. A mixture of gold with the base
metal silver and copper in equal proportion at 50-50 ratio. Mostly found in the 12K up to
22K range.
2. Red Gold – named due to its distinctive yellowish red color. It is a mixture of gold with
the base metal copper only or at times with a small amount of silver (Bangkok –
Singapore Gold).
3. White Gold – by nature there is no such thing as white gold, it is only through the
addition of the alloy nickel, zinc and copper which makes it appear white at the following
percentage; 65% Ni, 25% Zn and 10% Cu.
4. Chinese Gold – a misnomer which classify high karat jewelry gold usually 22K and
above. Usually stamped with Chinese characters. Due to high content of gold, its
appearance is always yellow with base metal silver only.
5. Fool Gold – technically known as pyrite a metal iron without any trace of gold due to the
presence of Sulfur iron, it resembles the appearance of real gold but more lustrous.
Nuggets are not formed as jewelries only “dular”.
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GOLD PURITY
The quality or the amount of gold present maybe expressed into three (3) categories all
complementing each other;
1. Karat – a method of determining the quality of gold expressed into twenty-four parts
where 24K is considered to pure. Designated by symbol K. This is most often used in the
U.S and Japan.
2. Percentage – a term used to expressed the quality of gold into hundred parts. Originated
from the word per cent meaning per hundred. A terminology most often used in the
laboratory. Denoted by the symbol % used by other Asian countries such as Thailand and
Singapore.
3. Fineness – a technical used to define the quality of gold expressed into a thousand part.
Most often used in the Middle East and European countries and by the metallurgist in
defining the quality to the nearest thousand. No symbol.
HALLMARK – a stamp applied by a legitimate assayer to indicate the fineness of a precious
metal.
KILATERA – Tagalog counterpart.
To know the amount of pure gold present in any alloy, simply divide any karat by 24 (the highest
karat).Due to the very slight differences in color and other distinguishing properties 16K is
avoided. For example:
KARAT
GOLD CONTENT
24K / 24
=
1.00 or 100.00%
22K / 24
=
0.917 or 91.70%
20K / 24
=
0.833 or 83.30%
18K / 24
=
0.750 or 75.00%
14K / 24
=
0.583 or 58.30%
12K / 24
=
0.500 or 50.00%
10K / 24
=
0.417 or 41.70%
8K / 24
=
0.333 or 33.30%
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KINDS OF GOLD
There are generally two kinds of gold jewelry received as pawn.
1. Imported Jewelry – jewelry that came from other countries and characteristically have:
* excellent craftsmanship
* the design is compatible with its expected marking or weight
* mostly in gold jewelry
a. Chinese (Hong Kong) – S-lock; Yellow Green to Dark Yellow; with Chinese
Alphabet marking (near the lock); soft to deform; 999.9 mark.
b. Baht (Bangkok, Thailand) – S-lock; Yellow; soft to deform, (1) Baht is 15.2 grams
(standard weight); (1/2) Baht is 7.6 grams; (1/4) Baht is 3.8 grams.
c. Japanese (Japan) – Round lock; Hollow under the top (rings); Yellow; with marking
found mostly on the lock.
d. Saudi (Saudi Arabia) – Round lock; Yellow – 18K, Red Yellow – 21K (mostly with
Arabic Alphabet), Arabic markings:750, 18K, 21K.
e. Singaporean (Singapore) – S-lock; with 916 markings = even with 916 marking
which means 22K. It is only 21K; Reddish Yellow (like Saudi 21K).
** looka like is locally (Manila) made which is Yellow color, S or Round lock, Low
Karat (8K to 14K)
f. Italian (Italy) – Side-pull lock; Tri-color; Light Yellow color; markings on lock :
750, 585,
397.
g. Spanish (Spain) – looks like a Saudi Gold (only with no Arabic marking), Yellow
Orange in color; back to back pendant (Mary / Jesus Christ).
2. LOCAL JEWELRY – made in Philippines and classified into two:
a. Machine Casted – no trace of soldered portion; fine trademark / initials; good
quality, no cracks, no scratches, no pores; designs are generally attractive to wider
base of clientele.
b. Hand Made – evident trace of soldered metal especially in the inside portion;
marking is dull; not so good quality, mostly there are cracks, scratches and pores
especially if viewed under the lens; design is mostly personalized (with initials) and
some with synthetic stones and low quality diamonds.
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HALLMARKS
U.S, ITALY,
CHINESE,
SINGAPORE
JAPAN
SWISS,
BANGKOK,
CHINESE
24K
K24
999
22K
K22
916 / 917
20K
K20
833
18K
K18
750
14K
Made
583 / 585
12K
To
500
10K
Order
417
8K
↓
333
NOTE:
MIDDLE EAST
(SAUDI)
(21K)
14K 585 US
- 583 CANADA, AUSTRALIA
ARABIC CODE …
24- ٤
8- ٨
0- • or ▫
1-
TYPES OF JEWELRY(Design and Approximate Weight)
MEN’S RING
DOMINO – designed mostly with square or rectangular top with a
cluster of nine to twelve small diamonds ranging from .60 to .30 ct.
Approx. weight 9 to 12 grams P200.
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HORSE SHOE- symbol of good luck. It’s design is copied from the
original shape of real horse shoe. Set with 7 to 9 pieces of small
diamonds ranging from .03 to .10 carat on the sides and accented
with a center diamond of approximately .25 ct. to .50 ct. to look
more elegant. Approximate weight 6 to 9 grams. P120 – 150.
SOLO – commonly designed with round, oval or square top with
one big diamond on the center. Stone is set in either burnished or
pronged type. Like other men’s rings, its weight ranges from 10 to
12 grams.
Birth Stone Ring – its shape follows the shape of the birth stone to
be used. It is mostly set with synthetic or imitation stone. Design is
varied and it has no official design.
Initial or Identification Ring – designed with the initial of the
owner. This initial is set with tiny diamonds that add glitter to the
finish of the ring. Like others it weights 10 to 12 grams.
EARRINGS
De Kaha or Picaporte– An old way of making lock for earrings.
Design in this earring should be at least not too big to match this
lock. Approximate weight is 3 to 6 grams.
French Lock or De Paltic– used in big design earrings. Like
dangling or designs that match cocktail rings. Now it is very seldom
we use this lock for it hurts the ear of the wearers. Approximate
weight is 6 to 8 grams.
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Creolla – Lace like designs that lock itself into a holed ear. Designs
are varied that ho definite number of stones are required. Weight also
varies from 6 to 8 grams.
Dermilona – Basically, the design is composed of three parts.
1. Face, sometimes set with one small stone up to the most
intricate design with the biggest diamond available.
2. Post, termed by local craftsmen as “Pakaw”.
3. Tsapa, serve as lock of the earring and it is placed behind the
ears. Approximate weight is 3 to 5 grams.
Neck chain
Men’s – only two design are practically used by men :
1. square
2. rope
Both weigh approximately 7 to 20 grams.
Ladies – women have varied designs in neck chain. Designed with different charms and
beads. It is so light such that it is also saleable. Approximate weight is 2 ton 14
grams.
Ladies Rings
Tiffany – used by ladies to represent that they are engage to be
married. Basically designed with elevated solo diamonds then
adorned with small add elegance to the design. Designs are so varied
that it is almost impossible to see the same design in two stores.
Approximate weight is 2 to 3.5 grams.
Pinky Ring – because of the high cost of gold and diamonds, this
ring dominate the local and international market of jewelry. It is
designed sometimes in abstract, architectural or with it uses minimal
amount of gold and small diamonds to add glitter to a girl’s finger.
Approximate weight is 2 to 3 grams.
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Ladies Initials – unlike men’s ring, this initial ring weighs much
less due to its size. Ladies love to wear dainty streamlined jewelry
which makes this ring very saleable. It is very seldom that this set
with diamonds. Approximate weight is 3 to 4 grams.
Cocktail or Leaf Design Ring – this design were at a boom during
the 60’s. these design includes one or more medium size diamonds.
Moderno Design – due to expanding international jewelry, we have
to follow trends in design and taste of the consumer or user. We can
not give exact description of this type. Weight varies from 4 to 8
grams.
Signet Ring – bearing an emblem, zeal, sign of zodiac according to
the order of the customer. Design is varied and most of the time
exclusive to the owner. Because of the various designs available, its
weight ranges from 10 to 12 grams.
GOLD TEST ANY KARAT DISTINCTION
Gold is the only yellow metal that cannot be dissolved by single acid. Acids are classified single
acid if they contain only one element such as Sulfuric, Nitric, Hydrochloride and others. Any
piece of yellow metal which does not react with these mentioned acids can be concluded as
GOLD. The expected reaction from non-gold metals is “bubbling” or discoloration of metals if
reacted in such acids. If bubbling occurs during application of acid it is a sign that acid is
dissolving the metal which shows that the metals tested are NOT GOLD.
Another thing to remember in gold is that it always appears in metal form unlike other metal
which can be found in ores. Any metal in yellow can be tested if it is in metal form by
hammering. Non-metal form will break into pieces while metals will be flattened.
In some laboratories, testing or assaying pieces of metals or gold alloy is done in the following
ways:
a. Grind part of metals into minute particles.
b. Place ground materials on a glass slide.
c. Apply chemicals which react with the said metal.
d. Observe reaction pattern with standard mathematical computation suggesting amount of
different metal is in alloy.
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The TOUCH STONE METHOD is widely accepted worldwide and believed to be used by
majority of jewelry producing companies. It is believed that this method, handed down from
generation to generation, serves the purpose and it can guarantee to guide us not to be deceived
by the glitters that usually distract a layman’s eye.
In laboratories, gold is ground into minute particles. Alloyed gold is the pressed hard enough into
a piece of BLACK TESTING STONE, back and forth leaving traces of lines of the alloy in the
surface of stone. This black testing stone serves as grinder and slide compared to laboratory
procedures. Its black color provides a good contrast against the color of gold. These color
contrast helps to detect reaction when NITRIC ACID is applied on the gold lines.
Note: THERE IS NO SUBSTITUTE TO NITRIC ACID IN GOLD TESTING.
There are varied reactions expected when Nitric acid is applied on different karats of gold alloy.
It is advisable for a beginner in this field to use a pattern of different karats of gold alloy to
compare reaction against the materials being tested. This GOLD PATTERN will be very
helpful in giving decisions specially in actual business. Yellow gold alloy and while gold alloy
are likewise tested in same manner. In this process “other metals” in alloy are attacked by Nitric
acid and what is left is the amount of gold in the alloy. Owing to differences in amount of gold
left in test stone and to some slight chemical reactions, colors of these sample gold lines vary
which makes detection of karat easier. Constant practice is very much necessary to familiarize on
variation of color produced in test stones. To do this, one must observe the following:
TESTING PROCEDURE IN TESTING GOLD KARAT:
1. Press an edge of any piece of jewelry you wish to test on the Black Testing
Stone leaving traces or lines of the metal on it. Do the same procedure on each
gold tip of your pattern. Traces of metal from your jewelry should appear
parallel under the gold lines of the pattern. In order not to be confused, the five
parallel lines of the pattern should start from 18K down to 8K.
2. Wet the cap of the acid bottle by gently shaking it leaving small amount of acid
in the cap. Take the cap and gently apply the acid on top of the lines in the stone
tester. Examine the lines carefully and observe which line on your pattern is the
closest in appearance to the lines of the item to be tested.
3. Wipe the acid hard enough with a tissue paper or a piece of cotton cloth and
again carefully compare the difference. You will notice the following:
18K – the lines are almost without difference from he original.
14K – the lines of gold are left though very slight thinner.
12K – only half of the original lines are left.
10K – very small trace of gold lines are still visible.
8K – no more trace.
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TESTING 24K, 22K, and 20K GOLD
Normally, acid is not necessary in testing this high karat gold. Its appearance in test stone will
help distinguish its karat or gold content.
24K – when pressed in test stone using usual forward / backward motion, it leaves very light
and insignificant gold lines in the stone because of its softness (same as lead), lines dull
even when using much pressure.
22K – like 24K the minute particle left in test stone is dull but is more visible than the first.
This is due to some alloy that fuses with the gold making it a bit harder.
20K – this karat produces an obviously visible sample in the test stones. It cannot be
mistaking for 18K because of some LOOSE PARTICLES which are only available in
these three higher karat. It is best to compare these three karats of gold using the Gold
Pattern to distinguish their differences.
TESTING 18K, 14K, 12K, 10K, and 8K
These lower karats are tested with the use of Nitric Acid which can dissolve almost all metals
except some few – Platinum, Palladium, Titanium, Stainless, and Gold. Among the few metals
mentioned, only gold is yellow. When alloyed gold is rubbed against test stone, it leaves traces
of the alloyed gold. Due to very minimal quantity of the alloy left in stone, acid can easily attack
non-gold metals thus leaving only gold in test stones. As mentioned earlier, there are some slight
chemical reactions during the process that lead to some discoloration of the minute particles of
metals that enables us to distinguish differences of various karat being tested. After application
of Nitric Acid, one would notice the following:
18K – due to high presence of gold in the alloy, it can “protect” non-gold metal and one
would notice there is no difference at all. Test further by adding small amount of ash
(preferably cigarette ash) or small amount of salt (Sodium Chloride). Gold is still visible
in the traces of gold in test stones. This help us conclude that metals being tested are 18K.
14K – just like the above, this gold alloy can withstand acid, but when applied with ash or
salt, it will turn gray leaving no trace of gold on gold test stone. To detect if gold is not
higher than 14K, be sure that there is no change if only Nitric Acid is applied. A minor
change of color means that it is lower than 14K.
12K – A trained eye is amidst to detect the difference of 12K from 14K and 10K. 12K
contains one half gold of total alloy. It has a very slight discoloration if examined very
carefully. If acid stays longer on top of tested traces of metals, it can be noticed that said
metals become dull although presence of gold is very much intact as if nothing has
changed.
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10K – with this karat, anyone could tell the difference for it gradually becomes reddish. This
may take some few seconds but to be sure, wipe test stone with a cloth or tissue paper
notice traces if gold are still visible in the stone.
PURITY
COLOR
AFTER ADDING OF NITRIC ACID
24K
Very golden yellow
Quite distinct line
22K
Yellowish golden
Lines are distinct & very fine
20K
Golden brown
Lines remain in the same
18K
Yellowish brown
Lines are almost without difference
14K
Yellowish
Lines are left though very slightly turn gray
12K
Light red
Half of the original lines are left metal became dull
10K
Red
Small traces of gold lines are still visible gradually
becomes reddish
8K
Pale red
No more trace of gold is still visible instantly turns
red
DIAMONDS
THE FOUR C’s
CARAT WEIGHT
The Carat weight is standardized according to system as 200 milligrams or one-fifth of a
gram. One carat therefore equals 0.2 grams. The carat is further divided into 100 and a
fraction of a carat is called POINTER.
A diamond is usually priced on a per carat basis, according to its size and quality. Where two
diamonds have exactly the same carat weight, the better quality will command a higher price
carat.
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Due to the rarity of Diamonds, prices per carat depend on the size of the stone. A two-carat
diamond will cost more than twice as much the pieces one-carat diamond of the same quality.
CLARITY
Because nature rarely perfect, most diamonds show imperfections of crystallization called
inclusions found within the stones such as Bubbles, Clouds, Cracks, Feathers and Mineral
Inclusions.
Such inclusions are not structural weakness but they affect the clarity of the diamond to the
degree that they interface with the passage of light through the stone.
In some diamonds, these inclusions are visible to the naked eye. The brilliance of these
diamonds is less than that of diamonds whose inclusions are not visible, and so they have a
lesser degree of clarity.
A diamond does not have to be flawless to be beautiful. In a sense, the inclusions in a
diamond are its fingerprint because these inclusions are rarely duplicated in another
diamond. (See the clarity scale)
COLOR
Colorless diamonds are more valuable. Starting from the colorless stone, the yellow tint
gradually increases until it is clearly perceptible to the human eyes. In addition to these
yellowish diamonds, brown and green diamonds are also found.
The only real way to determine the exact color of a diamond is to place it beside an other
diamond which has previously been graded. It must be placed on a white sheet of paper
under a good light to be free from reflection of other colors.
There are diamonds in virtually all colors of the spectrum. Most of these are shades of brown
and yellow, but there are also shades of pink, orange, green and blue. These diamonds are
called fancies beauty, but they do not have brilliance of the lighter color.
CUT
Most diamonds must be perfectly cut. Any deviation from that precision affects from the
price.
If two identical diamonds are placed side by side, and one is less brilliant and fiery than the
other, fault lies in cutting. A careful examination the stone will show that its facets’ angles
and proportion do not match with those of the perfectly cut diamonds. It cannot command a
high price. (See chart on DIMENSION)
The proportioning of the diamond and cutting of facets to precise angles are designed so that
as mush light as possible can go into the stone from tope, bounce around inside, and then
come back out of the top again with brilliance, fire and scintillation.
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A diamond whose proportion is tool deep will leak light through the facets below the girdle.
If proportion is too shallow it will also leak light and it may have a “fish eye” dead spot on
top.
GIA DIAMOND CLARITY GRADES IN BRIEF
FI (FLAWLESS):No inclusions or blemishes
10x – inclusions & blemishes can’t be seen by a skilled grader.
Accepted are:
- an extra facet (EF) on the pavilion and can’t be seen face up;
- a natural (N) confined to the width of girdle which does not thicken nor distort
its outline;
- internal graining (IntGr) which is not reflective, white, or colored, and which
does not affect transparency.
IF (INTERNALLY FLAWLESS):No inclusions but with insignificant blemishes.
10x – extremely difficult for a skilled grader.
Accepted are:
- light surface graining (SGr) which can’t be brought up to FLAWLESS (because
it can’t be polished off);
- a natural (N) which is not exactly confined to the girdle;
- an extra facet (EF) on the crown.
VVS1 and VVS2:Minute inclusions and blemishes.
10x – extremely difficult (VVS1) to very difficult (VVS2) for a skilled grader.
VVS1 : clarity characteristics are visible only from the pavilion, or small and shallow
enough to be removed easily by re-polishing.
Typical are : no feathers, tiny bearding, tiny pinpoint (1 or 2), minor bruises,
tiny chips, reflective
internal graining.
VVS2 : same inclusions as VVS1 but to a higher degree.
Typical are : scattered pinpoints, faint clouds, slightly bearded girdle that can
extend a little bit, tiny feathers, chips, and bruises. Tiny inclusions
can be seen on table.
VS1 and VS2:Minor inclusions and blemishes.
10x – difficult (VS1) to somewhat easy (VS2) for a trained grader.
VS1 : typical are small and few included crystals, feathers, distinct clouds, and
groups of pinpoints. Inclusions do not affect stone’s beauty.
VS2 : same inclusions as VS1 but to a higher degree.
SI1 and SI2:Noticeable inclusions and blemishes.
10x – easy (SI1) to very easy (SI2) for a trained grader, and some way be eye-visible.
Inclusions are often centrally located and noticed immediately.
SI1 :
typical are included crystals, clouds and feathers.
SI2 :
same inclusions as SI1 but to a higher degree. Has
durability
problem
especially near crown and pavilion.
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I1, I2, and I3 : Obvious inclusions which are large to very large and numerous affecting
transparency and brilliance.Typical inclusions are large included crystals and
feathers.
I1 :
Obvious at 10x and quite visible with the unaided eye.Large and least in terms
of number among all
Imperfects.Has durability problem and quite affects
transparency and beauty.
I2 :
Obvious at 10x and easily visible with the unaided eye. Larger and numerous
inclusions, and has durability problem which affects transparency, beauty and
durability.
I3 :
Extremely easy at 10x and easily seen with the unaided eye. Largest and
numerous inclusions which seriously affect transparency, beauty, durability,
and brilliance.
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CLASSIFICATION OF COLORS
COLORS
DESCRIPTIONS
Rarest white/
Colorless &very
transparent (cool
icicle or gin tonic
color)
HON
GI G AGS SCANDIA KON (USA) NAVIA
G
RUSSIA
FRANCE
GREAT
BRITAIN
RAREST
WHITE
BLANC
EXCEPTIONN
EL
FINEST
WHITE
D 100%
0
RIVER
E 99%
F 98%
Rare white/near
colorless &
WHITE transparent
1
G 97%
2
WHITE
H 96%
3
I 95%
Slightly tinted
white
SWITZER-LAND
4
J 94%
K 93%
SLIGHT TRACE OF L 92%
YELLOW
COLOR
5
6
TOP
WESSELT
ON
WESSELT
ON
TOP
CRYSTAL
RIVER
TOP
WESSELTON
FINEST
WHITE
EXTRA
BLANC
FINE WHITE
WHITE
BLANC
WHITE
WESSELTON
TOP CRYSTAL
FINEST
CRYSTAL
BLANC
NUANCE
COMMERCI
AL WHITE
COMMERCI LEGEREMEN TOP SILVER
CRYSTAL
AL WHITE
T TEINTE
CAPE
TOP
CAPE
FINEST
CAPE
CAPE
CAPE
SILVER
CAPE
CRYSTAL
TOP CAPE
M 91%
N 90%
CLEAR TRACE OF
COLOR
LIGHT CAPE
7
O 89%
P 88%
TEINTE
8
CAPE
LIGHT COMMERCI
YELLOW AL CAPE
CAPE
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PROPORTION GRADING OF AN AMERICAN IDEAL ROUND BRILLIANT GEM
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FACET ARRANGEMENT OF STANDARD ROUND BRILLIANT
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FORMS OF DIAMONDS CUTS
SIXTEEN CUT
EIGHT CUT
OVAL
CROWN
PENDELOGUE / PEAR
NAVETTE / MARQUISE
HEART-SHAPE
BRILLIANT
EMERALD CUT, SQUARE
BAGUETTE
PAVILION
EMERALD CUT, RECTANGULAR
SCISSORS CUT
RADIANT CUT
SQUARE
TRAPEZE
TAPERED BAGUETTE
ROSE CUT (DIAMANTE)
ANTWERP ROSE
3-FACET
6-FACET
DOUBLET DUTCH
SINGLE DUTCH
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DIAMOND APPRAISING










THE 4 C’s AFFECTING APPRAISAL
INCLUSIONS UNDER 10X
FIVE FACTORS TO CONSIDER IN CLARITY GRADING
HOW TO OBSERVE INCLUSIONS
DIAMOND Vis-A-Vis DIAMOND IMITATIONS/SUBSTITUTE
CLARITY APPRAISING
CLASSIFICATION OF CUT
USING THE LEVERIDGE GAUGE
WEIGHT ESTIMATION FORMULAS
PRACTICAL COLOUR-GRADING
DIAMOND TESTING
To appraise diamond, it is important to be sure that what is being tested is a real one and not an
imitation and simulant.
Being the hardest mineral known to man, diamond can be tested by means of STYLUS, a
pointed instrument tipped with corrundum.It can resist scratches because it is harder than the tip
(corrundum) of the instrument. It can deface an imitation or fake, posing to substitute real
diamond.When the tip of this instrument is positioned to scratch a diamond it will just slide on its
surface while when it is pressed against the imitation, one would feel that the tip of the
instrument produces friction. If friction is felt, do not continue the test to avoid destroying the
stone.
In recent times, the use of Diamond Tester is prevalent. It is a thermal probe where the heat
conductivity of the gemstone is determined.
PROCEDURE:
1. Turn the diamond tester ON. Wait for 3-5 seconds before it becomes ready.
2. Wipe the gemstone to make its surface clean.
3. Position your finger on the metal portion located at the back of the tester.
4. Probe the gemstone on the surface.
5. If the tests emits a beeping sound, the gemstone is a DIAMOND. If not, it maybe a
simulated stone or a synthetic.
6. Turn the tester OFF.
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DIAMOND APPRAISING
The major factors that influence the value of diamonds are the 4C’s
CLARITY
Clarity makes the diamond beautiful with its fiery brilliance.
With good clarity, it can produce different rays of color in the
spectrum through the dispersion of light.
CARAT SIZE
The bigger the diamond, the more expensive it is. A one-carat size diamond may cost two items
higher than two pieces of one-half carat size totaling one carat.
This only shows that rarity is an important factor in pricing gems
for it is obviously rare to find big diamond to produce big
polished gems.
COLOR
The closer a diamond to being colorless, the more it produces brilliance. This
is why more people prefer white or colorless.
CUT
A diamond
light to
cut precisely according to proper proportion will allow much
bounce to the top.
INCLUSIONS UNDER 10X (EXTERNAL & INTERNAL FOCUSING)AND NAKED EYE
CLARITY
F
IF
INTERNAL FAULTS
NONE
NONE
EXTERNAL FAULTS
EXCEPT: SMALLEST
NONE
(EF/N)
EXCEPT: SMALLEST
NONE
(EF/N/PM)
TABLE FAULTS
ANYWHERE
NAKED EYE
NONE
IMPOSSIBLE
NONE
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WS1
WS2
VS1
VS2
SI1
SI2
P1/I1
P2/I2
P3/I3
VERY VERY SMALL &
VERY VERY SLIGHTLY
INCLUDED (ABOUT 5-10 MINIMAL/SMALLEST
MINUTES FOR AN
EXPERT TO DISCERN)
VERY SMALL & VERY
SLIGHTLY INCLUDED
SMALL
(1-2 MINUTES FOR AN
EXPERT TO DISCERN)
SMALL & SLIGHTLY
INCLUDED (ABOUT 1-2
SOME DEFINITE
SECONDS FOR AN
EXPERT TO DISCERN)
LARGE & FEW
EASILY
RECOGNIZABLE
(LOUPE) & WITH A
DEFINITE
LITTLE DIFFICULTY
(NAKED EYE) FOR
BEGINNERS
LARGE & NUMEROUS
(LOUPE) VISIBLE
(NAKED EYE)
DEFINITE
LARGEST & NUMEROUS
DEFINITE
(NO NEED OF LOUPE)
NONE/NONEMINIMAL
VERY,
VERY
SMALL
SMALLEST/VERY VERY
SMALL
SMALL
EYE CLEAN
SMALL & EASILY
SMALL THRU THE
DISCERNABLE
CROWN
ANYWHERE BUT NO
INFLUENCE ON
BRILLIANCE
QUITE SEEN
(BEGINNERS)
ANYWHERE AND
DIMINISHING BRILLIANCE SEEN
SOMEWHAT
ANYWHERE AND
DIMINISHING OR EVEN
DAMAGING ON
BRILLIANCE
OBVIOUS
LEGEND:
F – FLAWLESS
EF – EXTRA FACET
IF – INTERNALLY
FLAWLESS
N – NATURAL
P – PIQUE (EUROPE) PM – POLISHING
MARKS
I – IMPERFECT (AMERICAN)
NOTE: Medium to large brilliants (which clarity grade range from VVS to SI) can be optionally
sub-divided into two grades, as in VVS1 and VVS2.Ex. If the general appearance of the diamond
is closer to a higher clarity level, the grader will decide on VVS1, if closer to a lower grade, the
sub-division 2 is applied.
FIVE FACTORS TO CONSIDER IN GRADING
1. SIZE – Obviously, size (along with color/relief) has a lot to do with how easy a given
characteristics is to see and, as a rule of thumb, the easier it is to see, the lower the clarity
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grade will be. The inclusion’s size can also determine its effect on durability. The larger
the feather on an included crystal, the more dangerous it can be.
2. NUMBER - More characteristics can mean a lower grade but grades are normally set by how
readily you can see characteristics not by counting them. A stone could, for example,
have a number of minute pinpoints and still grade VVS. On the other hand, one large,
dark, or centrally included crystal could drop it into VS, SI, or even I. in general, number
is fine-tuning factor. One or two o the largest inclusions usually establish the grade;
additional ones have little effect, as long as they are small.
3. POSITION – A characteristic’s location frequently determines how readily you see it. The
most obvious position for inclusions is directly under the table which is the window of a
stone. Inclusions under the crown facets or near the girdle are often hidden by facets and
reflections. From the visual standpoints, the worst place an inclusion can be is where it
becomes a reflector. If it lies under the table and near the pavilion, the pavilion facets
may act as mirrors, reflecting multiple images of the inclusion. If this phenomenon is
visible in the face-up position, the effect on the grade is considerable. The position of
potentially damaging inclusions, such as feathers, large knots, and included crystals, can
be significant. Normally, feathers completely enclosed in a stone will not grow during
ordinary wear, and those reaching the pavilion are protected by the mounting. But
feathers extending from the girdle or crown – exposed parts of the stone – can be
extended by a sharp knock.
4. NATURE – this is based on two general distinctions. Whether it is internal or external is one:
Below IF, the clarity grade is almost always set by inclusions; blemishes generally have
little or no effect on it.
The second is whether a particular characteristics poses any risk to the stone. Most do
not; by the time the stone reaches the jewelry store, it has already survived great stress
from the friction and pressure of cutting, and it is likely that anything that follows will
exceed – or even equal – what it has already been through. Obviously, the size and
location of such an inclusion enter into the equation, too, as far as durability is concerned.
5. COLOR AND RELIEF - Color and relief can affect visibility as much as size. Generally, the
more an inclusion differs in color from its host, the more obvious it will be. Relief is the
contrast between the stone and the inclusion; the greater the relief the more it will affect
the clarity grade. Colored inclusions are easier to see, they may lower the grade more
than the colorless one. An exception might be a black pinpoint, which often is actually
more difficult to see than a white one.
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HOW TO OBSERVE INCLUSIONS:
+
=
less diminishing
-
=
diminishing and even damaging the brilliance (down-graded)
1. Size and Number -
+ small, single or few = SI (up)
- large, numerous = PK (down)
2. Discernability
+ w/ difficulty, w/ magnification = VS (up)
+ w/ a little difficulty under 10x = SI
- w/out difficulty under 10x but w/ difficulty under naked eye =
-
PK1
-w/out difficulty under 10x and easily seen by naked eye = PK2 –
PK3
3. Appearance
-
+ light
- dark (down-graded)
4. Nature
-
+ unalterable crystalline inclusions
- risky cracks that can expand (down-graded)
5. Type
-
+ compact
- diffused (down-graded)
6. Position
-
+ hidden (near girdle, under pavilion)
- table (down-graded)
7. Reflections
-
+ single, does not reflect
- single, but reflects if inclusion is on a facet edge which becomes
-
PK1 = inclusion does not damage the brilliance
PK2 = inclusion damages the brilliance slightly/somewhat
PK3 = damages the brilliance totally
numerous
8. Brilliance
DIAMOND VIS-À-VIS DIAMOND IMITATIONS/SUBSTITUTES USING THE NAKED
EYES AND 10X MAGNIFICATION
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NAKED EYE:
1. Diamond has adamantine luster, other imitations are too dull like synthetic spinel,
synthetic sapphire,yag, and.g.g.g..
2. Diamond has moderate rainbow effect. Other imitations like strontiumtitanate(fabulite) or
syntheticrutile are too rainbow.
10x MAGNIFICATION
3. Most of the diamonds have distinct natural crystal inclusions (carbon spots).
4. Hardness of diamonds cannot be copied by other imitations. Others have distinct damaged
edges and scratches.
5. Diamond does not have doubling of back facets. NOTE: always look through the table,
then focus on the back facets. Doubling of back facets happen to synthetic rutile which
also is usually yellowish, too rainbow and hazy in appearance and natural zircon.
CLARITY
(G.I.A)
FL
IF
VVS1
VVS2
VS1
VS2
SI1
SI2
I1
I2
I3
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CLARITY GRADING
FOR APPRAISING
SI1
SI2
I1
I2I3
DIAMOND INCLUSIONS AND
OTHER STONE DEFECTS
CLASSIFICATION OF CUT AVERAGE REDUCTION IN COMMERCIAL APPRAISAL
Very Good
- no reduction in value
Good
- ave. 10% reduction in value
Medium
- ave. 20% reduction in value
Poor
- ave. 30% reduction in value or needs to be re-cut.
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Some examples of Poor Cut Brilliants:
Large Brilliants
:1). old-cut with incorrect proportion & symmetry.
Ex: small table, large culet, large sizes of the facets:
adjoining crown and pavilion main.
Medium and Small Brilliants :
: 2).
Single cut (eight-cut), incomplete cut only seen in
small brilliants. (See diagram next page, upper left most
corner).
: 3). DIAMANTE, no facet patterns only in small brilliants.(Not
the faceted rose cuts).
3 CRITERIA A DIAMOND CUTTER SHOULD APPLY:
1. Good proportions (within the tolerances)
2. Correct symmetry
3. Minimal to no external faults
external
reflection
dispersion
through
the top
Minimal amount of light refract
table shorter
refraction
Internal reflection
some light
escape
some light
escape
THE FOLLOWING HAS TO BE CONSIDERED IN USING THE DIAMOND HOLE GAUGE
AND LEVERIDGE GAUGE:
1. Put the desired hole on top of the diamond.
2. Make sure that all the edges of the diamond are seen (north, south, west, east).
3. Both the diamond and the hole’s edges are touching but there should be no space
difference between the two edges (north, south, west, east).
4. Do not concentrate on the prongs but only on the diamond’s edges.
5. Standard formula for round brilliants using Leveridge gauge:
Height x (Diameter)² x 0.0061
Salability of the Jewelry
a. Check the appearance of the Gold Jewelry
b. Check the appearance of the Diamond in a Jewelry
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Module 4
Practical Application
Objectives: At the end of this module, the participants are expected to:
 have experienced the different tasks/responsibilities of the (1) Cashier, (2) Appraiser and
(3) General Clerk.
 Be able to apply learned theories and concepts in the course of their experience.
Materials/Equipment Needed:
1. Equipment: Projector, Laptop/Computer
2. Books/Documents: OR, PT, Pawn Slip, LAP Card, JS Form, LE Book, LP Book, Sales
Book, Foreclosed Book, Daily Cash Report, Cash Count Notebook, Delivery Receipt,
Price Tag, Description Slip, Voucher
3. Appraisal Tool: Loupe, Diamond Tester, Black Stone, Nitric Acid, Ash
4. Gold Jewelry: Ring, Bracelet, Necklace, Earring (10 – 24 K Yellow and/or White Gold),
Jewelry with diamond, Watches (Fake and Genuine), Cellular Phones, Tablets, Laptops.
In this phase of the training, following rules shall apply:
1.
All trainees are required to bring calculators, ball pen and notebook.
2.
For security purposes, bags, pouches and the likes will not be allowed inside the
training room.
3.
Trainees’ pockets shall be completely emptied before coming in and going out of the
training room.
NOTE: “SDT” refers to Skill Development Training
GENERAL CLERK/DISPLAY CUSTODIAN
Note: For the step by step activity, refer to theoretical training hand-outs
SDT 1:
Transaction Flow – Pawn Transactions (JAWS)
SDT 2:
Transaction Flow – Lost Pawn Ticket Replacements (JAWS)
SDT 3:
Transaction Flow – Ordinary Redeem Transactions (JAWS)
SDT 4:
Transaction Flow – Redeem beyond Expiry Transactions (JAWS)
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SDT 5:
Transaction Flow – Ordinary Renew Transactions (JAW)
SDT 6:
Transaction Flow – Renew beyond Expiry Transactions (JAW)
SDT 7:
Transaction Flow – Foreclosed to Display/Inventory-out Transactions
(AWS)
SDT 8:
Transaction Flow – Foreclosed to Display/Inventory-out Transactions
(Jewelry)
SDT 9:
Transaction Flow – Inventory-in to Display Transactions (JAWS)
SDT 10:
Cash Sales Transactions (JAWS)
SDT 11:
LAP Transactions (JAWS)
SDT 12:
Periodic Report
a. Loan Extended Summary
CASHIER/CUSTODIAN
Note: For the step by step activity, refer to theoretical training hand-outs
SDT 1:
Transaction Flow – Pawn Transactions (JAWS)
SDT 2:
Transaction Flow – Lost Pawn Ticket Replacements (JAWS)
SDT 3:
Transaction Flow – Ordinary Redeem Transactions (JAWS)
SDT 4:
Transaction Flow – Redeem beyond Expiry Transactions (JAWS)
SDT 5:
Transaction Flow – Ordinary Renew Transactions (JAW)
SDT 6:
Transaction Flow – Renew beyond Expiry Transactions (JAW)
SDT 7:
Transaction Flow – Foreclosed to Display/Inventory-out Transactions
(AWS)
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TRAINING MANUAL
SDT 8:
Transaction Flow – Foreclosed to Display/Inventory-out Transactions
(Jewelry)
SDT 9:
Transaction Flow – Inventory-in to Display Transactions (JAWS)
SDT 10:
Cash Sales Transactions (JAWS)
SDT 11:
LAP Transactions (JAWS)
SDT 12:
Periodic Report
a. Daily Cash Report
b. Cash Count Notebook
APPRAISER
PRACTICAL APPLICATION 1: Period and Figures Computation (JAWS)
Transaction No. 1: Mr. A pawned an item on October 23, 2014.
 Assume that the item is found to be genuine and acceptable. However, slightly used.
SDT 1:
Determine the Date of Maturity
SDT2:
Determine the Date of Expiry
SDT 3:
Determine the last date of withholding period
a. Watch
b. Appliance
c. Jewelry
d. Sensitive Item
SDT 4:
Determine the Auction date
a. Watch
b. Appliance
c. Jewelry
d. Sensitive Item
SDT 5:
Compute the Principal
a. Watch (Sample)
b. Appliance (DVD Player)
c. Jewelry (24K Gold Ring)
d. Sensitive Item (Tablet)
SDT 6:
Compute the Appraised Value
a. Watch (Sample)
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SDT 7:
b. Appliance (DVD Player)
c. Jewelry (24K Gold Ring)
d. Sensitive Item (Tablet)
Compute the Net Proceeds
Transaction No. 2: Mr. A redeems the pawn item.
 Assume that the owner redeemed on November 20, 2014.
SDT 8:
Compute the Interest.
SDT 9:
Compute the surcharge.
SDT10: Compute the other charges, if there is any.
SDT 11: Compute the amount needed to redeem the item
 Assume that the owner redeemed on December 15, 2014
SDT 12: Compute the Interest
SDT 13: Compute the surcharge
SDT 14: Compute the other charges, if there is any.
SDT 15: Compute the amount needed to redeem the item.
 Assume that the owner redeemed on March 5, 2015 and willing to pay in full.
SDT 16: Compute the Interest
SDT 17: Compute the surcharge
SDT 18: Compute the other charges, if there is any
SDT 19: Compute the amount needed to redeem the item
 Assuming that the owner redeemed on March 16, 2015. However, he opted to pay it in
installment
SDT 20: Compute the interest
SDT 21: Compute the surcharge
SDT 22: Compute the other charges, if there is any
SDT 23: Compute the amount needed during the first installment.
Transaction No. 3: Mr. A renews the pawn transaction. (Assuming transaction 2 did not happen)
 Assume that the owner renews the transaction on January 20, 2015. (Apply one at a time J,A,
W & S)
SDT 24:
Compute the amount needed to renew the pawn transaction
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 Assume that the owner renews the transaction on March 26, 2015. (Apply one at a time J, A,
W & S)
SDT 25:
Compute the amount needed to renew the pawn transaction
Transaction No. 4: Assume that the pawn item is foreclosed and you are tasked to price it.
SDT 26:
S)
Compute the auction or selling price of the item. (Apply one at a time J, A, W &
PRACTICAL APPLICATION NO. 2: Appraisal of Watches
SDT 1: Checking of Acceptability of the Watch
a. Look into the memo of acceptable watches
b. Check if no marks of opening
SDT 2: Assess the Authenticity of the Watch
a. Check if there is no smeared inscriptions
b. Check if engravings are clear
c. Check if there is no typographical errors and letter substitutions
d. Check the Applique or brand name if perfectly carved.
SDT 3: Assess the Appearance of the Watch
a. Check if there is no obvious scratches in the glass, case, case back or strap
b. Check if the glass and display is crystal clear
SDT 4: Assess the Functionality of the Watch
a. Check the crown/botton if it’s functioning well (fine tuning)
b. Check if the dates can be set properly and perfectly.
c. Check if watch hands functions perfectly even after rotating it back and forth
by 360°.
d. Check the display and/or the crown if it’s perfectly attached.
e. Check if the sweep of the second’s hand glides effortlessly.
SDT 5: Assess the Salability of the Watch
a. Check if it has unique features
b. Check the materials
c. Check the condition
d. Check if known Brand
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PRACTICAL APPLICATION NO. 3: Appraisal of Sensitive Items – Mobile Phones and
Tablets
SDT 1: Checking the acceptability of the Mobile Phone
a. For mobile phones, check first the IMEI. Dial *#06# and search in the Net.
b. Look into the memo of acceptable mobile phones
c. Check the manufacturing date (Do not accept if 2009 and below model)
SDT 2: Assess the Authenticity of the Mobile Phone
a. Check IMEI/registrations number
Example:
- Type *#06# and press dial button
- Get the 15 digit IMEI code
- Search in the net the IMEI code
- Check the 7th and 8th digit, to get the quality
b. Check if it has a seal from National Telecommunications Commission (NTC)
SDT 3: Assess the Appearance of the Mobile Phone and Tablets
a. Check the glass material
b. Check the screen
c. Check gaps between parts like the home, power and volume buttons are
obvious
SDT 4: Assess the Functionality of the Mobile Phone and Tablets
a. Turn on or off (require the customer to turn off the password)
b. Test the camera and record
c. Test processing speed (counterfeits are far much slower)
d. Test voice recorder to check the microphone
e. Test with different SIM cards to determine network lock (lower appraisal for
units with network lock)
f. Check if complete necessary accessories
For apple gadgets
g. Let the customer turn-off the passcode
h. Go to settings, scroll down and click ICLOUD
i. Require the customer to delete his/her account in ICLOUD (explain properly
why we do this)
SDT 5: Assess the Salability of the Mobile Phones and Tablets
c. Check if it has unique features
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d. Check the materials
e. Check the condition
f. Check if known Brand
SDT 6: Required Accessories
a. Charger or adopter
b. Memory cards
PRACTICAL APPLICATION NO. 4: Appraisal of Sensitive Items – Laptop and Desktop
SDT 1: Checking the acceptability of the Laptop
a. Look into the memo on acceptable items and watch out for the minimum
requirements
SDT 2: Assess the functionality of the Laptop/Desktop
a. On/off the unit
b. Operate 5 – 10 minutes, require system password or disable the password
c. Play a movie file for 3 – 5 minutes
d. Check camera and voice recorder
e. Check the charger and battery if functioning properly
f. Check all keys in the keyboard/keypad
SDT 3: Assess the appearance of the Laptop/Desktop
a. Look for broken seal (laptop) or marks of opening.
b. Check obvious scratches
c. Check the screen if it has defects
SDT 4: Required accessories
a. Get the adapter
b. Bag or casing
c. Mouse (if there is any)
PRACTICAL APPLICATION NO. 5: Appraisal of Sensitive Items – Camera and/or Other
items
SDT 1: Check the acceptability of the Camera and/or other items
a. Look in to the list of acceptable items
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SDT 2: Assess functionality of the item
a. Check the charger or adapter
b. Check the on/off function
c. Capture an image
d. Check the buttons
For game consoles
e. Do not accept PSP Fat (1000 model)
f. Do not accept if without memory card
g. Do not accept PS2
h. Nintendo Micro – not accepted
SDT 3: Assessing appearance
a. Check for obvious scratches
b. Check for marks of opening
PRACTICAL APPLICATION 6: Appraisal of Gold
SDT 1: Identifying Hallmarks
a. Check if there is a hallmark
b. Check kind of Gold
SDT 2: Test the Gold
a. Press an edge of any piece of gold jewelry you wish to test on the Black Stone
b. Apply the acid in the trace of gold
c. Apply ash in the wet area (if necessary)
d. Note Change
PRACTICAL APPLICATION 7: Appraisal of Diamonds
SDT 1: Identifying acceptability of diamonds
a. Colored diamonds are not valued
SDT 2: Test the Diamond using the Tester
SDT 3: Check the clarity of the diamond using loupe
a. Bubbles
b. Clouds
c. Cracks
d. Feathers
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e. Mineral Inclusions
SDT 4: Check the Cut
a. Check average reduction
PRACTICAL APPLICATION 8: Transaction Flow
Note: For the step by step activity, refer to theoretical training hand-outs
SDT 1:
Transaction Flow – Pawn Transactions (JAWS)
SDT 2:
Transaction Flow – Lost Pawn Ticket Replacements (JAWS)
SDT 3:
Transaction Flow – Ordinary Redeem Transactions (JAWS)
SDT 4:Transaction Flow – Redeem beyond Expiry Transactions (JAWS)
SDT 5:
Transaction Flow – Ordinary Renew Transactions (JAW)
SDT 6:
Transaction Flow – Renew beyond Expiry Transactions (JAW)
SDT 7:
Transaction Flow – Foreclosed to Display/Inventory-out Transactions
(AWS)
SDT 8:
Transaction Flow – Foreclosed to Display/Inventory-out Transactions
(Jewelry)
SDT 9:
Transaction Flow – Inventory-in to Display Transactions (JAWS)
SDT 10:
Cash Sales Transactions (JAWS)
SDT 11:
LAP Transactions (JAWS)
SDT 12:
Periodic Report
a. Loan Paid Summary
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