View Suspected Out of Margin Report

The Suspected Out of Margin Report lists items that are flagged as out of margin. An item is considered out of margin when its margin is not within the range for the department to which that item is charged.

You must review this report monthly to ensure the retail amounts charged are accurate.

Note: Inaccurate retail amounts will impact the store’s shrink at the end of the year.

The Home Office reviews this report during the first week of every month and makes corrections to significant items usually before the books are closed for the month. Refer to the PA Corrections Report to identify items that have already been corrected.

Status of Suspected Out of Margin Items

Each item listed in this report has one of the following status conditions:

• N - Not Resolved or Pending—Complete a PA Correction Worksheet to correct the remaining items in this report. To view the PA Corrections Worksheet, use one of the methods below:

From The Quad, follow this path: Finance Inventory Accounting Inventory Corrections

- or -

Click the following link:

http://quad.fheg.follett.com/finance/invacct/inventorycorrections.xls.

• O – Acceptable or OK—Review the items that are not fixed. If the margin for an item is correct, change the flag for these items to O for OK. For example, an additional credit will have cost but no retail. Even though this item will be listed in this report, the margin is correct, as there will be no retail on additional credits.
• F - Fixed Items—The margin was fixed outside of the Purchase Analysis. (i.e., The PA correction was submitted, processed and listed in the PA Correction Report.) The Home Office corrections will be listed in the PA Corrections Report, sent to the stores around the middle of every month. Compare the Suspected Out of Margin Items to the PA Corrections Report. On the corrections listed in the PA Corrections Report, change the flag to F.

Change the Status of an Out of Margin Item

Once you have examined and fixed the entry, or determined a suspected out of margin entry status should change, you can update the status of the entry. For the steps needed to change the status, see Changing the Status of an Out of Margin Item.