Cas 506: Clearance Items

Products that have not sold or have lost their original state — either by time or because they have been damaged — should be moved to clearance. Let’s imagine that the product was 3200 lb. pallet of 1” Hickory Select that got run over by our front-end loader and now it’s “crushed rock.” We are still going to sell it as Storm Mountain 3” Patio. We’ll weight the product, we’ll move it to the clearance section, but then we have to move it in Odoo. We’ll do what we refer to as an “internal move.” Any employee has the permissions to do an “internal move.” You’ll go to Inventory ... Internal Moves, then click Create. In this example, for Source Location, we’ll select Salt Lake Stock, for Destination Location, Salt Lake Stock/Clearance Area. Select today as the Date, there is no BOL (Bill of Lading). Lower down on the page, under the Operations tab, under the Product column, click “Add an item” and in this example, Hickory, 1” Select. Since we’re selling 3200 lbs. for $250, we’ll divide $250 by 3200 to calculate a price of 0.07813 for each pound, which we’ll enter under the price. Click Save, then Mark as Todo, then Force Availability, then Validate. The price will appear as rounded to the penny, but it will actually calculate the price at the price you entered. The cost of the item is calculated the 80% of the price you’ve entered, that is, with a 20% margin. It’s not the actual margin, because sometimes we’re actually paying our customers to take it. But it serves for commission purposes, so salespeople makes something on the sale regardless. Now, selling a clearance item is also a bit different than a standard sale. Just as with any Sales Order, you’ll go to Sales ... Orders ... Create. Enter the customer’s name. If the customer is taking the product now, you can enter the “Cash” account of the salesperson. Click “Add an item,” the product. If the “Not enough inventory” box appears, click OK. Enter the “Ordered Quantity” (before the next step). And now, click the “Transfer from Clearance Location” box. Note: this checkbox will not appear if the product is not in clearance. In the Purchase Order Unit Price field, the new clearance price should populate. It it does not, manually enter it correctly. When you save the dialog box, back on the main new order screen you should see the item marked as “Transfer as Clearance Location” on a column where Toby is pointing (on the video). To move clearance items, cashiers can call all retail customers on our loyalty lists and advise them or our promo. When reviewing items in clearance, or moving them to clearance, make sure product is priced correctly. For salespeople, you are welcome to suggest items that should be moved to clearance because they aren't moving well enough. When you have a customer that is a hesitant on a sale, and you believe the problem is price, you might suggest an item on clearance to meet their budgetary need. Salespeople should know that if you miss doing the internal move of product to clearance and sell it at a clearance price, you could miss commissions on these items.