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Chapter 16Using Math in Sales Marketing Principles
Before Activity • Calculating Sales Tax 1. Your purchase at Wal-Mart in Phenix City, AL is $72.00. Sales tax in Phenix City, AL is 8%. What is the purchase total? 2. Your purchase at Publix in Columbus, GA is $58.00. Sales tax in Columbus, GA is 7%. What is the purchase total?
Before Activity • Calculating Shipping Costs • 3. You love shopping at www.oldnavy.com. The shipping rates are as follows for anywhere in the U.S.: • Free shipping for orders over $40 • $5 for an order of $21-40 • $7 for an order $0-20 • You purchase the following items on sale: • Swimsuit for $21.99 • Sandals for $12.50 • What is the purchase total?
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
During Activity • Chunking • We are going to READ and then discuss the key points of what you read • I have chunked the chapter into 5 chunks: • Types of Retail Sales Transactions P334-339 • Sales Tax P339-341 • Cash Registers & Their Main Functions P342-345 • Making Change P345-347 • Purchase Order P348-351
Types of Retail Sales Transactions • You will also handle: • Returns • Exchanges • Allowances • Sales tax • Shipping charges • As a salesperson or cashier, you will handle several types of sales transactions: • Cash • Debitcard • Credit card • Layaway (will-call) • On-approval • COD
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 • With a credit card sale, the fee paid by the company is based on the size of the account • 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
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
Sales Tax • 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
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
Cash Registers & Their Main Functions • 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 – Chunk 3 • 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
Making Change • 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
Section 16.3 Purchase Orders, Invoices, and Shipping OBJECTIVES: Prepare purchase orders and invoices Explain delivery terms
Purchase Orders • 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
Chapter 16 Wrap-Up • What questions and/or comments do we have about Chapter 16?