Chapter 16Using Math in

SalesMarketing Principles

Calculating Sales Tax

Before Activity

1. Your purchase at Wal-Mart in Phenix City, AL is $72.00. Sales tax in Phenix City, AL is 8%. What is the purchase total?

2. Your purchase at Publix in Columbus, GA is $58.00. Sales tax in Columbus, GA is 7%. What is the purchase total?

Calculating Shipping Costs

Before Activity

3. You love shopping at www.oldnavy.com. The shipping rates are as follows for anywhere in the U.S.:•Free shipping for orders over $40•$5 for an order of $21-40•$7 for an order $0-20You purchase the following items on sale:•Swimsuit for $21.99•Sandals for $12.50What is the purchase total?

Section 16.1 Sales Transactions

OBJECTIVES:•List all types of retails sales transactions•Process purchases, returns, and exchanges•Generate and process sales documentation•Calculate sales tax, discounts, and shipping charges

Chunking We are going to READ and then discuss the key

points of what you read I have chunked the chapter into 5 chunks:

1. Types of Retail Sales Transactions P334-3392. Sales Tax P339-3413. Cash Registers & Their Main Functions P342-3454. Making Change P345-3475. Purchase Order P348-351

During Activity

As a salesperson or cashier, you will handle several types of sales transactions:◦ Cash◦ Debit card◦ Credit card◦ Layaway (will-call)◦ On-approval◦ COD

You will also handle:◦ Returns◦ Exchanges◦ Allowances◦ Sales tax◦ Shipping charges

Types of Retail Sales Transactions

A cash sale is a transaction in which the customer pays for the purchase with cash or a check

The simplest sale occurs when the customer pays in cash

When a customer writes a check, you may need to verify his/her identity by requesting a driver’s license

Types of Retail Sales Transactions

Sales check – written record of a sales transaction that includes such info as the date of the transaction, items purchased, prices, sales tax, and the total amount due

One copy goes to the customer and one is retained by the business as a record of the sale

Types of Retail Sales Transactions

Businesses that have an encrypted, or coded, PIN pad can accept debit or credit card payments

Customers who choose debit will key in their private PIN

The bank that issues the debit card charges the company a flat rate per sale

With a credit card sale, the fee paid by the company is based on the size of the account

Types of Retail Sales Transactions

Layaway (will-call) – removing merchandise from stick and keeping it in a separate storage area until the customer pays for it

On-approval sale – an agreement permitting a customer take merchandise home for further inspection

Cash-on-delivery (COD) sale – a transaction that occurs when a customer pays for merchandise at the time of delivery

Types of Retail Sales Transactions

Sales tax – a % fee placed by the government on the sale of goods/services

A return is merchandise brought back for a cash refund or a credit

Allowance - a partial return of the sale price for merchandise that the customer has kept ◦ Example on page 340

Sales Tax

Not all purchases can be bought and carried home

Some items are too bulky, and others are purchased via the phone or Internet

Shipping is necessary and adds separate charges

Sales Tax

Section 16.2 Cash Registers

OBJECTIVES:•Name the functions of cash registers and point-of-sale (POS) terminals•Explain the uses for Universal Product Codes (UPC)•Make change

All sales must be recorded for accounting and tax purposes

In most businesses, cash registers can perform this function

All cash registers perform 3 basic functions:◦ Recording sales◦ Storing cash and sales documents◦ Providing receipts

Cash Registers & Their Main Functions

Today, most businesses utilize sophisticated cash registers that can also:◦ Figure sales tax◦ Calculate discounts◦ Subtract and credit returns◦ Determine the amount due back to customer◦ Track inventory

Cash Registers & Their Main Functions

Sales transaction data are entered into an electronic cash register in several ways:◦ Optical scanning◦ Electronic wand entry◦ Manual key entry

Universal Product Code (UPC) – a combination bar code and number used to identify a product and manufacturer

Cash Registers & Their Main Functions

Point-of-sale system – combines a cash register with a computer, making it possible to capture info about the transaction, then apply it to different functions◦ Example on page 344

Cash Registers & Their Main Functions – Chunk 3

Currency and checks collected in sales transactions are deposited in the till

Till – the cash drawer of a cash register It has 10 compartments – five in the front

and 5 in the back

Cash Registers & Their Main Functions – Chunk 3

Opening cash fund – a limited amount of money for the cash register

At the beginning of each business day, the manager provides this for each register

It consists of coins and currency This amount is checked at the beginning of

the day and at the end of the day

Cash Registers & Their Main Functions – Chunk 3

A person who handles a large number of cash transactions may run short of certain denominations during the business day

You need to have enough so you can make change throughout the day for your customers◦ Making change with a POS system◦ Making change without a customer display screen

Safeguard against theft and counterfeiting◦ See page 347

Making Change

Section 16.3 Purchase Orders, Invoices, and

Shipping

OBJECTIVES:•Prepare purchase orders and invoices•Explain delivery terms

Purchase order (PO) – a legal contract between the buyer and the supplier◦ Example on page 349

This document lists the quantity, price, and description of the products ordered, along with the terms of payment and delivery

Common things typically found on a PO:◦ Item #◦ Quantity◦ Description◦ Unit◦ Unit cost◦ Total

Purchase Orders

Invoices – an itemized list of goods that includes prices, terms of sales, total, taxes and fees, and amount due

Part of the selling arrangement negotiated between a buyer and seller involves delivery

Terms for delivery – the final delivery arrangement made between the buyer and seller

Purchase Orders

What questions and/or comments do we have about Chapter 16?

Chapter 16 Wrap-Up