Stock Types Explained

Stock Types Explained


Overview

This manual outlines the different stock types managed in The Edge system. Each stock type serves a specific purpose and involves unique handling procedures. Proper categorisation and management ensure accurate tracking, reporting, and liability coverage.

Stock Types

  • Stock: Standard stock purchased from a supplier.
  • Appro (Accepted on Approval Stock also known as Memo Stock): Stock loaned by suppliers to a retailer free of charge (FOC) until an agreed date. The Retailer is charged only if the item is sold or not returned by the agreed date.
  • Consignment: Stock customers provide for the Retailer to sell on their behalf.
  • Requirements:
  • Must have a customer assigned to the item within The Edge.
  • Pricing is typically determined by the customer.
  • Valuation is not mandatory but recommended to resolve disputes in case of loss.
  • Sample: Stock displayed for promotional purposes and not intended for sale.
  • Best Practice: Enter sample stock into The Edge for liability and tracking.
  • Trade-In: Items acquired from customers in exchange for goods or funds. This is treated differently from supplier-purchased stock and requires accurate documentation.
  • Assembled: Items created by combining multiple stock components within The Edge.
  • Example: A ring created by combining a loose stone and a mount.

Best Practices

  • Always categorise stock correctly in The Edge to maintain accurate inventory and reporting.
  • Record customer details for consignment stock to ensure clear communication and accountability.
  • Assign valuations to consignment items for liability protection in case of loss.
  • Enter all stock types, including samples, into The Edge to ensure liability and tracking.
  • Clearly document trade-in transactions to differentiate them from standard purchases.


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