Arch User Guide ver. 25 Classification: Document History Date Version Changed By Details 2015-06-24 1.0 Karl van Niekerk Created Document 2017-04-28 1.1 Michelle Lategan Updated: Addendum Document Version: 1.1 Page 1 of 39
Table of Contents Overview... 3 Definitions... 4 Deposit Container Setup Procedures... 5 Departments... 5 Products... 7 Settings... 8 Product Linking... 11 Price Calculator... 12 Purchasing and Receiving Procedures... 14 Empty Container Reception... 15 Empty Container Setup... 16 Menu Categories... 18 POS Cash Payouts... 19 Returnable Container Pre-paid Voucher... 21 Transaction Reversals... 23 Empty Container Returns to Supplier... 24 Supplier Link... 24 Direct Returns... 25 Location Returns... 28 Stock Adjustments... 31 Stock Adjustment to move stock from Deposit Container to Empty Container... 31 Stock Adjustment Reports... 33 Reporting... 34 Stock on Hand... 34 Deposit Payouts... 36 Claims... 37 Daily Summary Reports... 38 Addendum Version 25.8 Upgrade... 39 Single Stock Adjustment Returnable containers... 39 Document Version: 1.1 Page 2 of 39
Overview The scope of this document serves to explain the correct setup and usage of returnable containers in Arch Retail Software. By following the guidelines for the setup and control of returnable containers as discussed in this user guide, the store owner will be able to minimize losses due to theft and pilferage in stores as well as control the stock movement of these products using the various reports which Arch makes available to the user. Document Version: 1.1 Page 3 of 39
Definitions The following terms are used in this user guide; Deposit Containers Empty Containers Beverage Contents Credit voucher Empty Payout The Deposit Container refers to the full beverage bottle or crate which is purchased by the store for resale. The Deposit Container is used to determine the cost of the actual glass container or crate excluding the beverage content. The Empty Container is the glass container or plastic crate which the consumer returns to the store for a cash refund. These Empty Containers are in turn returned to the suppliers for a credit on the store s account. The Beverage Contents refers to the actual liquid contents of a beverage. The Credit Voucher is issued by some stores instead of cash. This practice is used to ensure that consumers spend their bottle refunds in the store instead of taking the money elsewhere. It can also be used to dissuade vagrants from frequenting the stores with empty bottle returns in search of cash payouts. Once a consumer returns an Empty Container, the store will perform a transaction at the cash register which gives the customer a cash payout or credit voucher and receives the empty bottle into stock. This user guide will make use of the following product from a Coca Cola invoice; Product Description Qty Unit Price 500ml Coca Cola RGB X20 2CS 79.21 500ml Unit Size and Unit of Measure Coca Cola Product Description RGB Returnable Glass Bottle X20 Pack Size = 20 units in a case 2CS 2 x Cases 79.21 Unit Price per Case excluding VAT (NOTE THAT THIS VALUE DOES NOT INCLUDE THE VALUE OF THE DEPOSIT CONTAINERS) Document Version: 1.1 Page 4 of 39
Deposit Container Setup Procedures In this section, we will explain the different steps required to setup deposit containers correctly. For the setup demonstration we will be using Coca Cola 500ml RGB (Returnable Glass Bottle) as an example as found on the Coca Cola Invoice. Departments Firstly, it is important to ensure that the department structure for returnable containers is set up correctly. Best practice is to create a major department for returnable containers to which sub departments for deposit containers and empty containers are linked. In the examples below the following departments have been added; Returnable Containers (20) Deposit Containers (201) Empty Containers (202) Document Version: 1.1 Page 5 of 39
The Returnable Containers department will serve as a Major Department to which the other departments will be linked. The Deposit Containers department will be used to link the deposit products to, and will in turn link to the Returnable Containers major department. The Empty Container department will be used to link the empty container products to and will in turn be linked to the Returnable Containers major department. Note that the Polarity of the Empty Containers department is set to Negative in order to facilitate the credit function for all products linked to this department. Document Version: 1.1 Page 6 of 39
Products Beverage Products The following products must be created in order to enable the accurate ordering, receiving, selling and stock control of beverages and returnable products; Coca Cola 500ml RGB Coca Cola 500ml RGB X20 Case Document Version: 1.1 Page 7 of 39
Settings The base and pack products must have the following settings: Product is a Stock Keeping Unit Product is a Till Item Unit Size = 500 Unit of Measure = ml Pack Size = 20 Pack Size = Till Item The Suppliers tab must have the following settings: Default Supplier Link Supplier Stock Code Pack Size = Preferred Ordering Pack Document Version: 1.1 Page 8 of 39
Deposit Container Products Please note that it is imperative that the correct cost prices are entered on the Deposit Container products as they contribute to the overall cost of the Beverage Products. When setting up Deposit Container products from scratch, it is a good idea to have all the Deposit Container costs calculated before starting the setup of each product. Failure to enter the cost prices on the Deposit Container items will lead to incorrect GP% calculations and possible negative GP% figures. The following Deposit Container products must be created, which will be linked to the Beverage Products: Deposit Container Bottle RGB 500ml Ensure that the following settings are correctly entered: Setting Department Name Listed Cost Price Landed Cost Price Returnable Container Product is a Stock Keeping Unit Product can be sold at Point of Sale (Till Item) Description Deposit Containers Enter the unit cost, e.g. R1.316 as determined on the invoice. Enter the unit cost, e.g. R1.316 as determined on the invoice. Ensure the box is checked to ON Ensure the box is checked to ON Ensure the box is checked to OFF Document Version: 1.1 Page 9 of 39
Deposit Container Crate 500ml Ensure that the following settings are correctly entered: Setting Department Name Listed Cost Price Landed Cost Price Returnable Container Product is a Stock Keeping Unit Product can be sold at Point of Sale (Till Item) Description Deposit Containers Enter the unit cost, e.g. R10.00 as determined on the invoice. Enter the unit cost, e.g. R10.00 as determined on the invoice. Ensure the box is checked to ON Ensure the box is checked to ON Ensure the box is checked to OFF Follow the same steps of the example above to create more Deposit Container products. Document Version: 1.1 Page 10 of 39
Product Linking Once all the Deposit Container products have been created, they can be linked to the individual beverage products. Open the Beverage Product base item, and select the Deposit Containers tab. Select the drop down menu below the Container Description column to choose the correct Deposit Container which will be linked to each Beverage Product code. The Deposit Container bottle must always be linked to the base item, and the Deposit Container Crate must only ever be linked to the pack size. The reason for the above setup process is to make sure that if a single bottle of a beverage is sold, it will only include the value of the glass bottle, but if a case of beverages is sold, it will include the value of a crate as well as the value of 20 glass bottle deposits as per the example. Document Version: 1.1 Page 11 of 39
Price Calculator The Price Calculator in Arch enables the user to view the correct costing and profit margins in addition to the selling price for the base products and the pack size products. This ensures that the store owner can make correct buying and selling decisions for the beverage items. It is important to note the box which shows the Expected Landed Cost + Container Cost, which indicates the full Landed Cost (Excl), from where the Gross Profit % is determined. It is also possible to view the cost of the different pack sizes, including the Deposit Container Costs, simply by selecting each different pack size. Document Version: 1.1 Page 12 of 39
It is very important to NOT use the GP% values as displayed on the General Tab of the Product window in Arch to determine the profitability of the product, since the Landed Cost displayed in this window does not include the Deposit Container Cost. In the above example, it is clear that the GP% displayed in the General Tab is much higher than the actual GP% as determined by the Price Calculator. For this reason it is very important to only use the Price Calculator to change prices of Beverage Products in Arch. As can be seen by the Sales Analysis report the GP% is calculated from the combined cost of the beverage and deposit container products. Document Version: 1.1 Page 13 of 39
Purchasing and Receiving Procedures Once the correct setup has been completed for Beverage Products, Arch will make the ordering and receiving of stock easier by including the value of the Deposit Container products automatically into the Purchase Orders and Goods Receiving modules. The Deposit (Excl) column can be activated in the Screen Layout menu in both the Purchase Order and Goods Received modules. It is important that the reception clerk does not manually add the deposit containers into the Goods Received Voucher otherwise the invoice will not balance. Document Version: 1.1 Page 14 of 39
Empty Container Reception Empty Container products are separated from the Deposit Container products for the simple reason that these are the products which are purchased into stock over the counter either at a dedicated empty-return kiosk in store or at the cash register. The store will issue the customer a cash payout or credit voucher for in-store use, and the stock on hand of the empty container product will be increased. In turn, these empty container products will be returned back to the supplier via a Goods Return Claim in Arch, and once received by the supplier, a credit will be issued for the value of all the bottles and crates returned by the store. The attached Coca Cola invoice shows the manually entered quantities and value of Empty Container products which are being returned to the Supplier. The total credit in this example is for R468.31 which gets deducted from the total amount owed for the preceding invoiced stock. Document Version: 1.1 Page 15 of 39
Empty Container Setup Create an Empty Container 500ml RGB product Ensure that the following settings are correctly entered: Setting Department Name List Price Landed Cost Selling Price (Excl) Returnable Container Product is a Stock Keeping Unit Product can be sold at Point-of-Sale (Till Item) Settings Tab Price Rounding Description Link to the Empty Containers department. Set the Listed Cost as determined from the invoice. Set the Landed Cost as determined from the invoice. The Selling Price (excl) must be equal to the Landed Cost Price at which the product gets returned to the supplier. Ensure the box is checked ON Ensure the box is checked ON Ensure the box is checked ON Ensure the box is checked OFF Document Version: 1.1 Page 16 of 39
Create an Empty Container Crate 500ml product Ensure that the following settings are correctly entered: Setting Department Name List Price Landed Cost Selling Price (Excl) Returnable Container Product is a Stock Keeping Unit Product can be sold at Point-of-Sale (Till Item) Settings Tab Price Rounding Description Link to the Empty Containers department. Set the Listed Cost as determined from the invoice. Set the Landed Cost as determined from the invoice. The Selling Price (excl) must be equal to the Landed Cost Price at which the product gets returned to the supplier. Ensure the box is checked ON Ensure the box is checked ON Ensure the box is checked ON Ensure the box is checked OFF It is important to remember that the price which the supplier pays the store is entered in the Landed Cost field of Arch, and the price which the store gives the customer who returns the empty container to the store is entered in the Selling Price (Incl) field. Follow the same steps of the example above to create more Empty Container products. Document Version: 1.1 Page 17 of 39
Menu Categories It is best practice for stores to add Empty Container products to a Menu Category which is added to the cash register touch screen interface or POS keyboard, ensuring that the cashier receives the Empty Containers on to the correct codes for stock and monetary purposes. Programming > Menu Categories Select the [>] button to create a new Category Number, and type in the Category Name and select the appropriate Location. Select the Save button and Close to exit. The product gets linked to the menu category in the Recipes tab of the Product window. Select the relevant category from the Menu Category drop down menu and select Save. Document Version: 1.1 Page 18 of 39
POS Cash Payouts The following steps will explain the procedure for receiving Empty Containers at the cash register and issuing the relevant cash payout to the customer; Once all the products have been correctly added to the menu category, simply press the green arrow on the cash register interface to open the menu category screen. Make the required selections and press the green arrow again to return to the main cash register window. Document Version: 1.1 Page 19 of 39
In the above example, a single Empty Container 500ml RGB product and Empty Container Crate 500ml product has been rung. Arch shows the quantity of each as -1, and the Price field also shows negative values. This indicates that this transaction consists of returnable products. This means the cashier must pay out the value as shown in the Sub Total field and Tender the sale using the Cash button to facilitate the payout from the cash drawer. On the cash up report it will show the Deposit P/O value of R12.90 for the above transaction and in the Stock Inquiry window for the items the Closing Stock will show an increase. Document Version: 1.1 Page 20 of 39
Returnable Container Pre-paid Voucher The following steps will explain the procedure for receiving Empty Containers at the cash register and issuing the relevant pre-paid voucher payout to the customer; The Credit Voucher as shown in the example can be scanned at the cash register as a method of payment tender on a transaction in the store where the voucher was issued. The value of the voucher will be deducted from the balance owing on a normal sales transaction in Arch. Ring up the products in the same way as explained in the POS Cash Payout section, but once the transaction has been Sub Totaled, instead of using the [Cash] button to tender, press the [Pre Paid] button. Arch will issue the cashier with a receipt for the transaction, as well as a barcoded credit voucher (see example above) which the customer can redeem in-store as partial payment on new purchases. Please note that this voucher cannot be redeemed without ringing up a sale, as it serves as a tender method. Document Version: 1.1 Page 21 of 39
Once the voucher has been issued, the report can be viewed in the Vouchers section of the Arch Reporting tree. The Voucher Listing report indicated vouchers which have been issued, but which are as yet unredeemed. The displayed status will show Pending for unredeemed vouchers. Redeemed vouchers will move to the Voucher Journal report. It is possible to suspend a voucher, either by right-clicking on the relevant line and selecting Suspend, or by selecting the Suspend Pending Vouchers option in the New Store Close Procedure. Suspending vouchers at the day end prevents voucher fraud for unredeemed vouchers. Vouchers can be re-activated by following the same steps as the manual suspension process, but instead of selecting Suspend, select the suspended voucher by right clicking on it and select Activate from the option menu. Document Version: 1.1 Page 22 of 39
Transaction Reversals Sometimes customers change their minds after returning Empty Container products to the store, and then demand their Empty Container bottles and crates back. This necessitates the reversal of the transaction at the cash register. Remember that for the reversal of Empty Container transactions, Arch will reduce the stock on hand for the container products since they will be given back to the customer, and the cash in drawer value will be increased since the customer must give back the cash payout which they received. The following steps must be followed if the customer was given a cash payout at the till; Before ringing up the Empty Container codes, select the [RTN] button on the till and then select the relevant Empty Container item from the Menu Category, and repeat for every item which is being returned to the customer. Once all the items have been selected, press [Sub Total] and then [Cash] to perform the reversal. This will ensure that the stock for the Empty Container items will be reduced and the money will be returned to the cashier s cash in drawer total. The following steps must be followed if the customer was given a credit voucher at the till; Before ringing up the Empty Container codes, select the [RTN] button on the till and then select the relevant Empty Container item from the Menu Category, and repeat for every item which is being returned to the customer. Once all the items have been selected, press [Sub Total] and then scan the credit voucher to perform the reversal. This ensures that the stock is rectified and the voucher discarded. Note that this will ONLY work if the voucher is still in a Pending status. It the voucher has been redeemed, then the normal cash payment method above will have to be followed. Document Version: 1.1 Page 23 of 39
Empty Container Returns to Supplier Empty Containers are returned to the supplier by using the Goods Returned Claim module in Arch. Supplier Link Before the Empty Container products can be returned to the suppliers, they will have to be linked to the relevant suppliers in the Suppliers tab of the Product screen. Document Version: 1.1 Page 24 of 39
Direct Returns For smaller stores which do not manage different stock locations the following procedure can be used to return stock to the suppliers; Transactions > Claims > Goods Returned Once the Goods Returned Claim window has been opened, select the appropriate supplier by clicking in the Supplier Number field and pressing enter to open the Supplier Lookup window. After the supplier has been selected, Arch will display the Claim Type window. Press the Cancel button to close this window, as it will not be used for the purposes of this claim. After the Claim Type window has been closed, enter the invoice number on which the Empty Containers will be returned in the Invoice/Uplift field, and then proceed to add the Empty Container products which will be returned to the supplier in the Product Code field, together with the quantities which will be returned in the Returned Quantity field. Check to verify that the Unit Price (Excl) for each item is correct. It is also possible to load the Empty Container products which are linked to a supplier by Department. Simply select the Tools drop down menu and choose the Load all Products for this Supplier by Department option. Document Version: 1.1 Page 25 of 39
Once this option has been selected, Arch will open the Department Tree window. Browse to the required department and select it by clicking on it before clicking on the Select button to load all products in this department which are linked to the supplier in the Goods Returned claim. Fill in the quantities which are going to be sent back to the supplier in the Returned Qty field. Once all the required Empty Container products have been loaded and the quantities and unit prices confirmed, select the Process button to finalize the Goods Returned Claim. Click on Yes when Arch prompts for confirmation to process the claim. Document Version: 1.1 Page 26 of 39
Once the Goods Returned Claim has been finalized, Arch will allow the user to print the claim document which will accompany the returned Empty Containers to the supplier. It is also possible to view when previous claims where performed on a specific Empty Container product by selecting the Stock Inquiry window and typing in the product code and selecting the Claims tab. Note that this is only a notification of returns, and is not a printable report. Utilities > Stock Inquiry Document Version: 1.1 Page 27 of 39
Location Returns Certain retailers choose to control their Empty Container products by using a second stock location for the reception, holding and returning of these products back to the supplier. This enables them to control the movement of these products to curb theft, pilferage and stock losses due to breakages. If an Empties Cage is in use at the store, then best practice is to set the sales location of each product to be for the location which has been created by support for the empties cage. Support Note: It will be required to set up a Returns Location and set the Claim Location Type as Return to Supplier in order to facilitate the returns procedure correctly at store level. Contact the support desk for assistance in setting up return locations. On product level, set the default sales location in the Settings tab to the newly created Empties Cage location. Do this for all products which are Empty Container items. Document Version: 1.1 Page 28 of 39
This enables Arch to receive the stock for any Empty Container products directly into the Empties Cage location once the transaction is finalized at the cash register. To view the stock on hand levels per location for products, select the Stock Inquiry module from Utilities > Stock Inquiry and enter the product code to view the stock movement per location. The example shows that 20 units exist in the Empties Cage location, as received from the cash register. Document Version: 1.1 Page 29 of 39
In the Goods Returned Claim, select the supplier as required before choosing the Claim Type from the drop down menu. If more than one Return Location has been set up, choose the appropriate location from the Location drop down menu. Once OK is clicked, Arch will automatically populate the Goods Return Claim with the products in the Empties Cage location at the quantities which are in that location for all products which have been linked to this specific supplier. Continue to add the Invoice/Uplift document number, and check that the quantities being returned and the unit costs are correct before processing the document for finalization. Document Version: 1.1 Page 30 of 39
Stock Adjustments Stock Adjustment to move stock from Deposit Container to Empty Container It happens at store level that shelf-packers use crates which are designated as Deposit Container products to hold overflow Empty Container bottles which get returned back to the supplier. It is therefore necessary to move the stock from the Deposit Container product to the Empty Container product in order to balance the stock on hand levels for stock takes and goods return claims. An example of this would be when a shelf-packer unpacks a crate of cold drinks in the shop fridge and then proceeds to carry the empty crate to the empties cage. For the stock of the Empty Container Crates to balance, a stock adjustment will have to be done on both products. The following procedure can be used to perform this transaction on a daily basis. To reduce the stock from the Deposit Container item select the Transactions > Stock Adjustments > Single Stock Adjustments drop menu from the Arch dashboard. In the example, Deposit Container Crate 500ml product is being reduced by a quantity of one. Setting Post Inquiry Find First Drop Down menu Description Finalize the transaction Stock Inquiry of the selected product Opens the Product Lookup list Select a reason for the Stock Adjustment Document Version: 1.1 Page 31 of 39
Location Current Stock on Hand Adjust Stock New Stock on Hand Current Ave Cost New Ave Cost Notes Print Choose the correct stock location for the product which is being adjusted Displays the stock on hand before the adjustment is done Add a ( - ) sign before the quantity being adjusted for a negative adjustment Displays the stock on hand after the adjustment is done The average cost before adjustment The average cost after adjustment Capture any notes pertaining to the adjustment Select the check box if a Stock Adjustment Printout is required After the Deposit Container Crate 500ml product has been adjusted, the stock must now be added to the Empty Container Crate 500ml product. As above, use the Single Stock Adjustment function to increase the stock on this product. Setting Post Inquiry Find First Drop Down menu Location Current Stock on Hand Adjust Stock New Stock on Hand Current Ave Cost Description Finalize the transaction Stock Inquiry of the selected product Opens the Product Lookup list Select a reason for the Stock Adjustment Choose the correct stock location for the product which is being adjusted Displays the stock on hand before the adjustment is done Add a ( + ) sign before the quantity being adjusted for a positive adjustment Displays the stock on hand after the adjustment is done The product average cost before adjustment Document Version: 1.1 Page 32 of 39
New Ave Cost Notes Print The product average cost after adjustment Capture any notes pertaining to the adjustment Select the check box if a Stock Adjustment Printout is required Stock Adjustment Reports To view a report for Stock Adjustments, select the following report in the Arch Tree; Arch Tree > Journals > Stock Adjustments Choose the appropriate filtering method using the added filters. Arch will display the report by department. Click on the [+] button beside each department to expand the view in order to see which products have been adjusted. The following columns are visible in the Stock Adjustment Journal; Column Department Number Dated Location User Reason Description The department number for the adjusted product Date and time of the transaction The stock location for the adjusted product The user who performed the adjustment The reason as selected by the user for the adjustment Document Version: 1.1 Page 33 of 39
Product Code Description Adjusted Adjustment Cost Adjustment Cost at Ave Cost The adjustment product s code The adjustment product s description The quantity of the adjustment quantities in brackets are negative The landed cost of the adjustment The average cost of the adjustment Reporting The following reports can be accessed to view the different transactional information with regards to returnable containers in Arch. Stock on Hand The stock on hand quantity can be viewed on the following reports; This report show the stock movement for the products which have been selected by using the reporting filters. The stock cycle is as follows; Opening + Goods Received Claims Sales Consumed + Produced +/- Transferred +/- Adjusted = Closing Document Version: 1.1 Page 34 of 39
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Deposit Payouts The cash register transactions for Empty Container payouts can be viewed in the Sales Analysis report. Select Reports > Sales Analysis > By Product > Product Type > Returnable Deposit This report shows the total quantity of Empty Container items which were received into stock from customers who returned them to the store for refunds. Document Version: 1.1 Page 36 of 39
Claims Goods Returned claims can be viewed in the following report; Journals > Purchase Analysis > Claim Type > Goods Returned Document Version: 1.1 Page 37 of 39
Daily Summary Reports The Trade Summary Report shows the total for Deposit Paid Out in the transactional section at the bottom of the report. Note that the Deposit Paid Out must not be confused with Deposit Container Products. This entry refers the value of payouts for Empty Containers brought to the stores by customers. Arch Tree > Reports > Trade Summary The Detailed Cashier Reports also indicate the total value and quantity of Deposit Paid Out products received by all the cashiers. Arch Tree > Reports > Cashier Activity > User > Consolidated Document Version: 1.1 Page 38 of 39
Addendum Version 25.8 Upgrade Single Stock Adjustment Returnable containers Overview Where to find it Benefit More information Apply single stock adjustment to linked containers as well Transactions Stock Adjustments Single Stock Adjustment When a single stock adjustment is done on a product which has returnable containers linked to it, the stock adjustment will also be done on the returnable container items. The adjustment on the returnable containers will also show in the stock adjustment reports. Document Version: 1.1 Page 39 of 39