5. CHANGEOVER
Inevitable for everyone!
Stressful to move your “life”.
Add “Best Practices” now to add $ value.
Small changes add up to less stress & more
success!
7. INVOICING
The Fixed Assets in a Canadian Tire
store account for an average of 20-30%
of the total value of the business.
The time spent on controlling invoicing
can have a very real and noticeable
impact on a Dealer‟s equity position.
8. ASSET VALUATION
In the absence of invoicing the Referee MUST:
List the asset at it‟s fully depreciated value
Estimate the asset‟s value
Both $cenario$ co$t you dollar$!!
9. ASSET VALUATION
An asset with no invoice is sold
at it‟s “BASE” value!
BASE = the % of original cost at which an asset
is fully depreciated.
“BASE” values vary by type of asset (average is
20-30% of original $)
10. ASSET VALUATION
EXAMPLE: 95-3467 Shopping Cart
Purchased Oct „11 for $109.75 - if listed today
No Invoice: With Invoice:
•(Base) •Oct ‘11
•30% Residual •85% Residual
•$32.92 •$93.65
11. ASSET VALUATION
EXAMPLE: 95-3467 Shopping Cart
Purchased Oct „11 for $109.75 - if listed today
No Invoice: With Invoice:
•(Base) •Oct ‘11
•30% Residual •85% Residual
On one
•$32.92 •$93.65 Shopping
Cart!!
12. INVOICING
Store Use Items
Flex Billed Items
Online Workorders
Non Prod #
Payables
Leaseholds
Worthit
Paper Management
13. STORE USE ITEMS
Most are not assets, but some are…
A good rule of thumb:
“If you could have it listed in the classified section of
the newspaper Craigslist/Kijiiji, it’s probably an
asset.”
14. STORE USE ITEMS
Make screenshots of the F14 window
for each one! (no “summary reports”!)
F14 shows: Prod#, Description, ADlr, Qty, Date
Make sure screen displays correct adjustment
date/qty BEFORE printing it!
15. STORE USE ITEMS
Write: “What is it / Where is it” on the sheet
File it into the 10 file sort
(we‟ll talk about that later)
17. INVOICING
Ikea Canada
123 Sweden Way
Yourtown, BC
1 x Knutstorp $79.99
1 x Ödmjuk
Subtotal v $5.99
$85.98
Tax $12.90
Total $98.88
02/07/09 Visa XXXXXXXXXX987
Thank you for shopping!
18. INVOICING
Ikea Canada
123 Sweden Way
Yourtown, BC
1 x Knutstorp $79.99
1 x Ödmjuk
Subtotal v $5.99
$85.98
Tax $12.90
Total $98.88
02/07/09 Visa XXXXXXXXXX987
Thank you for shopping!
21. INVOICING
DETAIL “What/Where” the asset is on
every non-prod # item!
Think: “five years from now will anyone
know what/where this thing is”?
Don‟t rely on your or anyone else‟s memory!
22. INVOICING
The more information available to the Referee,
the more likely the Referee is to capture
all available dollars.
Tell us; right on the invoice, what the item is,
where it is and any other relevant information
you feel may be useful to us!
24. INVOICING
DEMAND your vendors give you good invoicing!
An illegible invoice is a useless invoice!!
Thermal paper/faded photocopies =
Thermal paper print lasts 5-7 years… Copy Them!
Highliter ink eats thermal print!
An ambiguous date (05/07/10) could cost you $
Mark the “real” date on invoices when not clear
25. INVOICING
DEMAND your vendors give you good invoicing!
“Lump Sum” invoices will be returned to you
(usually years later) for breakdown
Assets must be listed by component – not by
“system” (phone, CCTV, alarm, etc.)
Retro-fits/Expansions: Be especially aware!
26. INVOICING
The Worst Offenders:
Auto Service Tools…
Computer Components…
Phone/CCTV/Alarm Systems…
They are mostly Jibberish!
27. INVOICING
Some assets will only be known if an invoice
exists, for example:
Staff Training
Equipment Upgrades
Replacement of an Asset with an
Identical Asset
28. FLEX INVOICES
“New” online workorders (since 2006) show
only the invoice number on the FLEX – a copy
of the invoice must be attached showing the
individual product #s.
29. FLEX INVOICES
FLEX bills showing only vendor name and
invoice # are useless (common in Cat 06) – copy
of the detail invoice must be attached.
30. FLEX INVOICES
Often the charges on FLEX bills for “unique”
items have supporting documentation…
include it and save yourself the hassle of
digging it out years later!
31. FLEX INVOICES
Even worse… charges on FLEX bills sometimes
have no supporting documentation included…
“95-9292 Custom Fixture”
Request it now! Don‟t wait! Often the person
who is responsible for the charge is gone!
33. LEASEHOLDS
100% of those stores are
leaving $$ on the table and
missing out on selling valuable assets!
34. LEASEHOLDS
Write up your leaseholds
AS YOU DO THE WORK
or you will forget them!
(labour invested, materials used, etc.)
35. LEASEHOLD FORM
Start from the bottom of page 2
and work your way UP!
1 form = only 1 asset category
Most common mistake!
Incorrect forms will be returned
to you for revision
36. LEASEHOLD FORM
MATERIALS:
1. Detail items used in the project (or staple
vendor supplied listing if applicable)
2. For CT product use current Adlr
3. PST only in PST provinces; no other taxes!
37. LEASEHOLD FORM
LABOUR:
1. Who did it? Staff/Outside firm?
2. Name of staff / hours spent
3. Rate is always $15/hour regardless
4. Outside firm name (if applicable)
5. Outside firm cost (PST only if PST
province)
6. Total
38. LEASEHOLD FORM
DESCRIPTION:
1. Where is it?
2. What shape/size is it?
3. What does it DO? Why did you spend $ on
this thing?
4. Repair/Upgrade/Replacement/New
39. LEASEHOLD FORM
SUMMARY:
1. Dates, names, signatures
2. Title
3. Labour $
4. Materials $
5. Total $ (no GST, HST, QST)
40. LEASEHOLDS
Keep a folder of blank forms in your desk
AND
One in your GM‟s desk too!
(ask them when you do month-end!)
42. PAPER MANAGEMENT
If it takes the Referee 3 days to sort and
organize your stack; that‟s 3 days NOT spent
working on your assets!
Keep your files clean and reduce the
“mountain” by keeping the
RIGHT documentation
in the RIGHT way!
43. PAPER MANAGEMENT
KEEP THIS:
1. (Detailed) Invoices
2. Purchase Orders
3. FLEX bills (+backup doc)
4. Previous Asset Listing Files
Staple all doc for each asset together…
(no loose paper)
44. PAPER MANAGEMENT
NOT THAT:
1. Check stubs
2. Freight bills*
3. Packslips
4. Envelopes
5. Statements
6. Any “Consumables/Store Supplies” doc
*Except for hoists, elevators, floor, conveyor
46. 10 FILE SORT
A) EQUIPMENT
To properly prepare your invoices you will need
to obtain the following:
1. 11 x Letter Size File Folders
2. 1 x Poly/Resin File Box
3. The Asset File Labels (incl. here)
4. All of your Asset Invoices
47. 10 FILE SORT
B) ASSEMBLY
1. Place file labels onto the folders
2. Place all folders in numerical sequence into
the file box/drawer
3. Gather all of your invoices (Flex bills, Local
Vendors, etc.) from the time your dealer
entered the store (or you last filed)
48. 10 FILE SORT
C) REVIEW
Inspect each invoice to ensure:
1. It is fully legible (especially copies/thermal)
2. It states specifically what components were
purchased (statements, visa bills or “lump sums”
are unacceptable)
NOTE: If you cannot tell from the invoice specifically what items
were purchased and their individual cost, you must contact the
vendor to request a “breakdown of cost by component”.
49. 10 FILE SORT
D) SORT/FILE
1. Use the “Invoice File Category Summary”
page as a guide. Sort all of your invoices
into one of the 10 categories.
2. Multiple items in more than one category?
Photocopy the invoice (and any supporting
doc.) and place a copy into each file.
50. 10 FILE SORT
D) SORT/FILE
3. What category to use?
Your first instinct is probably correct.
Otherwise, place the invoice into the file
marked “Questions”!
53. WORTHIT
Asset database software
Should be in your store already
Can‟t find the disc? Call for free replacement!
1-888-967-8411 ext. 261
54. WORTHIT
It is NOT necessary to maintain your electronic
files for changeover… unless you WANT to
Changeover Team will re-write the entire database
regardless of whether you maintain it or not
55. WorthIT Fixed Assets Quick Reference Guide
This guide only includes a limited number of the features that the WorthIT Fixed Assets offers. For more
details, please refer to the WorthIT User Guide.
Loading a Product Master File (PMF): From the main window, select Tools, then Product Master
Update. An “Open” window will appear in order for you to specify where to get the Product Master file
from. Specify the location where you previously stored the file next to ‘Look in:’ and select the file
(WorthIt date.pmf). Click Open or double click on the file. Once the job is completed, the Product
Master Update in Progress window will disappear.
“Quick Reference
Guide” walks you Adding a corporate asset: From the main window, click on New, “The Details-Asset ID” window will
open. If you have a corporate number to enter, you must fill in the following information: Product
through the steps to
number, Invoice date (MMDDYY) and Quantity. Once you are done, click on Add or press the Enter key.
The software will determine the replacement cost of the asset.
Adding a non-corporate asset: Select the appropriate fineline using the drop-arrow in the “Product
No.” field. For more details on non-corporate versus corporate numbers and finelines please refer to
open/add/edit/retire
your Changeover Manual in the Asset section. Once your fineline is selected, Tab over and the software
will automatically select a product number for you. Fill in the following information: Invoice date
(MMDDYY), Quantity, Original cost (price per unit) and a Description of the asset (needs to be very
descriptive). Once you are done, click on Add or press the Enter key.
an asset
Page 1
62. CONTRACTS
If they bill you before they provide the
service… then its a CONTRACT at
changeover!
63. CONTRACTS
Keeping track of prepaid services (contracts) in
advance of changeover leads to a greater number
and $ value of contracts transferred at changeover
(and $ in your pocket!)
66. OVERSTOCK FIXTURES
If you can FIND it you can USE it!
Messy overstock costs you $$!
• Re-Ordering what you already own
• Wasting labour hours constantly “excavating”
• Takes up space that could be used for
inventory
74. OVERSTOCK FIXTURES
Storage Systems.ca
The following are the prices for standard, unpainted, used shipping
containers, from our Toronto yard
Used 20‘ with barn doors - $2950.00
Used 40' with barn doors - $3950.00
Container West.com
The following shipping containers are available, used & unpainted, from our
Edmonton yard
Used 20‘ with barn doors - $3500.00
Used 40' with barn doors - $3500.00
75. OBSOLETE FIXTURES
There is no “official list”!
What is obsolete is unique to each store…
76. OBSOLETE FIXTURES
• have been replaced with newer versions or
permanently removed from the floor (faucets,
spray can, counter sections, major appliance
bases, etc.)
• vendor supplied racks (Raid, fishing rods, etc.)
• expired POP!
77. OBSOLETE FIXTURES
If you USE it… it isn‟t obsolete!
Example: Major appliance bases:
make a beautiful front entrance display $$
OR
abandon it in the warehouse
78. DISTRESSED MERCH.
If you wouldn‟t pay full price for it in
another store…
If you wouldn‟t give it as a
gift to loved one…
82. DISTRESSED MERCH.
Liquidating distressed merchandise regularly:
frees up valuable warehouse space
increases sales (the last damaged piece will
never sell at full value, and may never trigger
an order for a full-price replacement)
increases the revenue generated vs. selling it at
changeover to the Incoming Dealer (10¢/$1)
83. DISTRESSED MERCH.
Encourage Floor/Warehouse Staff to identify
distress merchandise regularly
Review/mark & remove it from on hands (UPC)
Sell under a dummy PC 93# (keep sales history
“clean”)
Importance of having accurate on hands
(ordering, lost sales, “surprises” at changeover)
84. Distressed List damaged merchandise
which the customer would not
Merchandise pay full price for!
Name: Date:
Department:
On Hands Adjusted By: Date:
Keeps on Product #
--
Quantity Description
hands --
--
accurate --
--
--
--
Detects --
--
--
“anomalies” --
--
--
--
“If there is a --
--
process it will --
--
--
happen” --
--
--
--
--
Dealer Support - September 2012
85. DISTRESSED MERCH.
Have a permanent clearance area
(it trains your customers)
& clearance events like “Garage Sales”!
89. VOLATILE AREAS
Most often they are exterior areas:
Garden Centre Compound
Auto Service Compound
Underneath Storage Trailers
Behind the Store
90. VOLATILE AREAS
Fixtures and inventory in these locations
need to be treated thoughtfully
if they are to retain value!
Weather / Theft / Abandonment
93. VOLATILE AREAS
Rusted fixtures are at very best 10% of original
value… if anything!
Water damaged inventory dumped into distress
merch. category (10¢/$1)
94. VOLATILE AREAS
Grey Totes = large grey funnels for water!
Metal = rust production factory!
Cardboard = cheap sponge!
