Gross Profit Checklist V.1

• Document No.

• Audit Title

• Client / Site

• Conducted on

  Date

• Prepared by

• Location
  Address

• Personnel

RECEIVING

• Are we receiving everything we have been invoiced for? - Quantity

  Yes

  No

  N/A

• Are refrigerated deliveries temperature checked? (Product not within temperature can cause early markdown and shrinkage issues)

  Yes

  No

  N/A

• Has the invoice been written up and secured in a safe location?

  Yes

  No

  N/A

• Are credit notes raised for missing, damaged, out of code, incorrect price? Not raising a credit note increases the risk of us not receiving the claim.

  Yes

  No

  N/A

• Do we authorise invoices weeks or months after the delivery date (risk of authorising and paying for stock we didn't receive)

  Yes

  No

  N/A

INSTORE

• Check the invoice price to the cost price in the back office system (Grocery Manager)?

  Yes

  No

  N/A

• Review the weekly item movement report for low margin products?

  Yes

  No

  N/A

• Review the weekly item movement report for high promotional sales mix?

  Yes

  No

  N/A

• Review the weekly item movement report for quantity sold not similar to quantity purchased?

  Yes

  No

  N/A

• Are keyed sales in department sales report more than 1%?

  Yes

  No

  N/A

• Has coolroom stock been date coded? (Minimising stock holding ensures maximum freshness and reduces markdown and shrinkage)

  Yes

  No

  N/A

• Speed screens - is description linked to the correct PLU and correct seasonal product?

  Yes

  No

  N/A

• Are all store generated specials located in DEAL 1 and SPECIAL 1?

  Yes

  No

  N/A

• Are there too many Special 1 products and/or too low GP?

  Yes

  No

  N/A

• Markdowns - are we following the guidelines?

  Yes

  No

  N/A

• Markdowns - do they exceed 2% of sales?

  Yes

  No

  N/A

• Markdowns - is the average markdown more than 1/3 of the original retail price?

  Yes

  No

  N/A

• Are all lines for sale in the store and used in departments recorded for store use or transferred if to be resold?

  Yes

  No

  N/A

• Stocktake - has all product allocated to the department been counted?

  Yes

  No

  N/A

• Are all department managers aware of their Shrinkage and Markdown results on a weekly and monthly basis?

  Yes

  No

  N/A

• Have all staff been instructed that NO stock is to be dumped without permission from the Department Manager?

  Yes

  No

  N/A

• No excessively high stock levels - ensure stock is ordered to last from one delivery to the next not for "just in case".

  Yes

  No

  N/A

• Stock on display not excessive and causing unnecessary markdown and shrinkage?

  Yes

  No

  N/A