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54 Cards in this Set
- Front
- Back
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2/10 EOM
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Billing procedure that provides for a 2 percent discount if the total bill is paid by the 10th of the month or the total bill becomes due without discount at the end of the month.
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Accumulated depreciation
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The total of the periodic depreciation amounts written off as an expense each year that the particular capital asset has been in service, and would represent in the case of each such capital asset cost would result in a figure that would represent that portion of the cost of such asset, which has not been written off or expensed.
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Advertising Allowance
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Amount paid by a vendor to the tennis professional as a refund of the pro rata media costs of advertising the vendor's product; also used as a euphemism to describe discounts of various types, many relating directly to volume of purchases rather than advertising costs.
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Assortment planning
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Plans made prior to the season to determine assortment of merchandise that will be available for sale, including dollar budgets for departments.
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Average inventory
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Add inventory levels together at cost for each period the inventory is taken and divide that amount by the number of times inventory was taken. Example: beginning inventory plus ending inventory divided by two equals avg. inventory.
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Automatic reorder
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Reordering staple merchandise on the basis of predetermined minimum quantity. When the minimum is reached, a predetermined reorder quantity is purchased.
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Balance Sheet
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Statement of financial condition of a business on a given date, listing assets, liabilities and equitity, equitity being the difference between the assets and the liabilities.
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Blanket Order
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Preseason order to meet certain anticipated needs, placed before production has started. Buyers order against the blanket order to meet needs as a season arrives and progresses.
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Book Inventory
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Method by which a record is maintained on the numeric count of items; opening inventory, plus receipts, minus sales at cost.
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Cash disbursements
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Follow of money out of the business, either by cash or checks.
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Cash Flow
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Flow of cash or money into a business and the flow of cash out of that business. Cash flow is not to be confused with cash position, which represents the amount of cash available at any given time in a business.
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Cash receipts
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Flow of money into a business by either cash or checks.
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Classification control
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Merchandise control system wherein the classification of merchandise is controlled by dollar inventory and sales rather than by specific style or item.
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Composite
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Type of racquet construction that joins two types of materials.
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COGS
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Beginning inventory at cost, plus cost of merchandise received, minus ending inventory at cost.
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Country club billing
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Only the dollar amt. of the customer/member purchases, returns and payments are posted on the statement. Sales receipts and documents are included with the customer's statement to support the dollar postings.
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Credit
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In a double -entry bookkeeping system, the entry on the right side. The credit that will balance with a debit in any given record keeping entry and will increase liabilities, income or equity accound and decrease assets and expenses.
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Debit
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Double-entry bookkeeping system, the entry on the left side. The debit will increase assets or expenses and will decrease liabilities, income or equity accounts.
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Depreciation
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A Periodic write-off of the cost of capital assets, that have a life extending beyond one year. The cost of furniture and fixtures, equipment, and other cush capital purchases would be divided by the number of years of their useful life, and that amt. would constitute the depreciation expense for the current year on the profit and loss statement.
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Description billing
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Posting of a customer/member statement with itemization of each transaction appearing on the statement. This would show a description of each article purchased or returned, sales tax and payments.
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Department
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Major group of classifications in a store.
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Dollor control
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System that controls your inventory investment by classification and by dollar value in relationship to your sales and inventory plan.
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Estimated Sales
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Forecast of future sales for a given period.
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Gross Margin
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Difference between net sales and total merchandise costs. Total merchandise costs equal purchases plus alteration and workroom costs plus beginning inventory, less the sum of merchandise discounts and ending inventory.
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Gross profit
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Sales minus COGS
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Initial markon
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Difference between merchandise cost and the selling price marked on merchandise when originally offered for sale.
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Inventory
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Figure representing the total cost of merchandise that professional has for sale in the tennis shot on a given date.
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Planned inventory
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Maximum amt. of planned merchandise on had at the beginning of the month to produce desired sales and turnover requirements.
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Inventory turnover
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Number of times the professional's investment in merchandise for sale turns during the business year.
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IRA or KEOGH
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Retirement plan for self-employed people.
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ITF
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world governing body of tennis
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Key-rec system
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A procedure and the related forms for recording the receipt of merchandise and returns to vendors and facilitating the matching of receiving documents to vendors invoices.
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Liabilities
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Outstanding bills, loans and other debts.
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Maintained markup
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The difference between net sales and gross COGS.
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Margin of profit on selling price
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Inaccurately called "markup" in the tennis business. The difference between cost and retail divided by retail.
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Markdown
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Reduction in the orginally marked retail price of merchandise, primarily taken for clearance of poor selections, broken assortments, end sizes, prior stock, special sales events and to meet competition. If the markdown is restored at some later date the resulting amt. is a markdown cancellation and not a markup.
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Markon
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Difference between the cost as billed and the retail price at which merchandise is originally marked for sale, or subsequently marked up. Cumulative markon or cumulative markon percent is the excess of retail of opening inventory, plus the retail value of purchases for a period divided by the cost of opening inventory, plus cost purchases during the period. It represents a dollar or percentage amt. of increment over cost in all goods available for sale during the period.
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Markup
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Upward revision of initial markon above the original retail selling price. AKA:additional markon. If the markup is eliminated at some later date, and the retail price reverts to original selling price, this is called markup cancellation, and does not constiture a markdown. But any further reduction of marked selling price, in excess of the amt. of the markiup is considered a markdown.
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Net Profit
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Gross Profit less expenses
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Net Sales
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Gross sales less returnes and allowances and less sales discounts. Net sales do not include 1)alteration charges; 2)carrying charges on installment accounts 3)sales and excise taxes; 4)transportation charges billed; 5)sales of supplies and waste. These items are treated as offsets to appropriate expense, purchase or liability accounts.
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On order or open order
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A term applied to merchandise purchases, i.e., ordered but not yet received.
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Overhead
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Fixed expenses incurred in maintenance and operation of a pro shop.
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Overstock/understock
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Difference between actual inventory on had and inventory allowance.
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Physical inventory
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Refers to two things- the actual items on hand, as well as the act of counting these items and recording the count (may be expressed in units and dollars)
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Printout
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Report that is created and printed as a result of running a program in the computer.
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Profit loss statement
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Statement of income and expenses of a business for a period ending on a certain date, resulting in either a profit or a loss for that period.
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Purchases
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Cost purchases are the sum of:
a)Billed cost of domestic purchases and landed cost of imported merchandise, net of trade (not cash) discounts. b)Transportation charges c)Production cost of goods manufactured internally d)Advertising allowances, where treated as deductions from purchases, rather than as offers to advertising expenses. |
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Retail inventory method
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Method for maintaining accounting book control of merchandise at retail amts, rather than cost amts. Determination of merchandise cost at any point is accomplised by the application of a calculated markon percentage of the book retail amts. and subtraction of the resulting figure from the book retail amt.
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Season
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General record keeping and planning divides the year into two seasons. The spring season consists of the first 26 weeks of the year, approximately February through July. On this same basis, the fall season represents the blanance of the year: August through January. It is significant that these season endings (July and January) generally reflect the lowest levels of inventory affording minimal carryovers from one to another.
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Stock keeping unit (SKU)
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Lowest level of identification of merchandise for inventory management. Within a particular style, this usually refers to the ability to identify a unique size within a unique color.
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Stock-to-sales ratio
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Relationship between current stock and current sales, expressed either in dollar amts. or in units. Using retail figures, this ratio is dervived by dividing the stock at the beginning of the period. For example: if the stock at a retail at May 1 is $50,000 and the sales for May are $25,000 the stock-sales ratio is 2 to 1 to sales.
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Turnover
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The number of times during the year that the average dollar stock of merchandise is sold.
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Unit control
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Control of merchandise in terms of pieces rather that dollars.
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Vendors
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The manufacturer, jobber or commission merchant from whom merchandise is purchased.
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