## Profitability: Sales Goal for Period Formula

### Profitability: Sales Goal for Period Formula

#### Overview

This document details the Sales Goal for Period formula used in the Profitability module.

#### Sales Goal for Period Formula

NOP Goal = 150,000

Fixed Expenses = 219,480

GPM = 63%

Royalty = 5.5%

Days Open in Year = 307

Days Open in Period = 26

Sales Distribution for Period = 6%

Annual Sales Goal

= (NOP Goal + Fixed Expenses) / (GPM% – Royalty%)

= (150000 + 219480) / (63% – 5.5%)

= 642,574

Annual Avg Daily Sales Goal

= Annual Sales Goal / Days Open in Year

= 642,574 / 307

= 2,093

Period Avg Daily Weight

= (Sales Distrib. for Period * Days Open in Year) / Days Open in Period

= (6% * 307) / 26

= 0.708461538

Period Sales Goal

= Avg Daily Sales Goal * Days Open in Period * Period Avg Daily Weight

= 2,093 * 26 * 0.708461538

= 38,553

Note:  The Period Avg Daily Weight calculation is more complicated when the period crosses month boundries.  It is correct as shown when calculating the sales goal for an entire month.

— end of document —

## Profitability Definitions

### Profitability Definitions

#### Overview

Here are definitions of a couple of terms used in the Profitability module.

#### Net Operating Profit

Net operating profit refers to the amount of money that a company has earned after the cost of goods sold and operating expenses have been deducted. This is used to see whether a company is making more than it spends or is operating at a loss. Net profit also is referred to as “the bottom line,” because it is usually shown at the bottom of an income statement.

The net profit margin percentage is a related ratio. This figure is calculated by dividing net profit by revenue or turnover, and it represents profitability, as a percentage.

Net profit (\$) = Sales revenue (\$) – Total costs (\$)

#### Effective Labour Rate

Most service advisors earn their pay based on the number of labor hours they sell.  But due to the prevalence of service menus and other forms of discounting, increasingly the focus is shifting from merely selling hours to selling them “effectively.”  As a measure of this effectiveness, the industry uses the term Effective Labor Rate.

Effective Labor Rate (ELR) is labor sales dollars coming in from the customer divided by the flat rate hours paid out to technicians. The key word here is paid to the technician for getting the work done.

ELR is not calculated in terms of hours billed to the customer. The dollars coming in divided by the money or the flat rate hours [actually] paid to the technician is where the real true formula for effective labor rate is at.

#### Margin

Margin = (cost – selling)/selling

— end of document —

## Preparing to Set Up Profitability

### Preparing to Set Up Profitability

#### Overview

Several things can be done ahead of time to make the set up portion of the Profitability module go a lot smoother. This documents details those items. Note that Profitability is a sub-module located in the Sales module.

#### Procedure

Step 1:  Review the Sales History over the past few years to determine how sales are distributed.  Know what percentage of sales to expect in each month of the year.

Step 2:  Decide if there are any Sale Codes that will be looked at separately when examining the parts/labor mix and margins.

Step 3:  Have a recent copy of a Profit & Loss statement handy to use when entering all expenses.   Also use this to determine the parts and labor sales mix as a percentage and the actual gross margin within that percentage.  This will be entered in the Annual Setup screen.

Step 4:  Check each employee to insure that they are all set up properly.  This information is vital to creating an accurate costs analysis for labor.

• Expense Category should be set to Cost of Direct Labor for technicians and Cost of Sales for counter people.
• Expense Category should be set to Other/Fixed Operating Expense for the owner and then accounted for in the expense categories list.
• Confirm that the pay method and all associated rates and profiles are set up properly for each employee.
• Each employee needs to be set up to use the Time Clock if their proficiency will be analyzed. The scheduler can be used to populate the time clock automatically if employees will not be clocking in and out of the system.   Call our support line for assistance in setting that up.

Step 5:  If Maintenance Sales will be monitored, have a list of which Sale Codes/Product codes groups contain maintenance parts.

Step 6:  Know which Estimate Statuses classify as a phone quote.  Those are counted separately when calculating estimate conversion rates.

Step 7:  Decide on a goal for the shop’s Net Operating Profit.  Other goals will be calculated based on ending up with that amount as NOP.

Once the above steps are completed, data can be entered, and the shop profitability can be analyzed.

Contact Janco Support at 800.782-5872 (US) or 800.323.5872 (Canada) with questions about this or any other procedure.

— end of document —

## Defining End of Period Reports

### Defining End of Period Reports

#### Overview

The reports that will be printed or emailed automatically when a period is closed need to be defined as part of the initial setup of StockTrac®

#### Procedure

To do this, go to the Sales Module. Next click Setup and then Reports.

This is the Report Setup grid. The periods are listed at the top of the screen, and the reports are listed on the left.

Put a number in the corresponding box to indicate the number of copies of that report to be printed or emailed when that period is closed. Click OK to continue.

The following reports can be selected:

 Aged Receivables Detail Exempt Sales Recap Post-Dated Checks Aged Receivables Summary Flat Rate Detail Referral Buyout Detail Gross Payroll Retail Sales Deposit Credit Card Cash Drawer Reconciliation Installer Salesperson ROA POA MCR Commissions Averages Inventory Audit Sales Cost Spreadsheet Committed Parts Invoice Detail Shop Transfer Counter Sales Summary Invoice Exception Summary Backout Credit Card Item Detail Listing Tax Audit Detail Custom Item and Buyout Margin Analysis Tech Proficiency Declined Parts and Services Negative Quantity On Hand Time Clock Detailed Backout Net Revenue Total Value of Inventory Detailed Sales Cost Spreadsheet Part Serial Numbers Vendor Detail Discount Coupon Parts Usage Zip Code

These values can be changed any time.

## Closing Out a Sales Period

### Closing Out a Sales Period

#### Overview

Close Period is done every business day, at the end of every week, at the end of every month, and at the end of every year. This should be done on the server, and all workstations, including the server, should be out of all other StockTrac® modules before proceeding.

#### Procedure

From the StockTrac® main menu, go into the Sales module.

Click the Close Period button or select Close PeriodClose Period from the drop-down menu. In this example, the day is being closed.

The Posting Status screen will display showing a calendar for the current month.

The days in red are unclosed. If a day is closed, there will be a purple line through it.

Set the period to be closed to Day and click on the day to be closed in the calendar. Next click the Print/Close Day button.

If buyout or cash drawer information needs to be entered, those buttons will be red. The information will then have to be entered before the day can be posted.

Next a screen will display asking to preview the reports or send them to the printer.

If Preview is selected, click through the reports using the arrow buttons at the top of the report page. To obtain a paper copy of the reports, click the Printer icon at the top left of the screen.

After reviewing and printing the reports, click the Close button at the top right side of the screen.

The system will then prompt to close the period.

Click Yes to close the period and post the data.

The procedure for End of WeekEnd of Month, and End of Year are the same as End of Day. Also remember that when closing the year, all Year-to-Date figures will be reset.

## Merlin Chainwide Spreadsheet Manual Send

### Merlin Chainwide Spreadsheet Manual Send

#### Overview

The Merlin Chainwide Spreadsheet is sent automatically when a shop closes their day. However, there may be instances when the spreadsheet does not get sent due to internet issues, etc. This document explains how to do a manual send.

#### Instructions

From the StockTrac® main menu, go into the Sales module.

Click on the Output dropdown menu, then on Send Merlin Chainwide Spreadsheet. (NOTE: If this option is grayed out, please use a higher security level.)

Click on Date Range, and then enter the date to be sent in both the Starting and Ending date fields. Click the Send button to transmit the data.

Once the data is sent, the following message will display:

Click OK.

If you have any questions on this procedure or if you need assistance, contact Janco Technical Support.

## Hazmat Fee Reporting

### Hazmat Fee Reporting

#### Overview

This document explains how you can get a report of Hazmat Fees collected for a specific period of time in StockTrac® Enterprise.

#### Procedure

From the StockTrac® main menu, go into the Sales module.

Click the Print Reports button.  Next select the Retail Sales Deposit Credit Card report for the period desired, as shown below.

The Hazmat 1 and Hazmat 2 totals are shown below the sales tax figures on the report.

## StockTrac® ENTERPRISE and QuickBooks Integration Setup

### StockTrac® ENTERPRISE and QuickBooks Integration Setup

The bridge between StockTrac® and QuickBooks sends three pieces of information: Sales (the types of services with the \$ amount), Cost of Goods (the types of services with the \$ amount), and Taxes. The following instructions will guide you through the setup of this integration.

#### Step 1: Turn on the QuickBooks Integration in StockTrac®

You will first need to contact Janco Technical Support to enable the QuickBooks integration in StockTrac® ENTERPRISE. Call 800-782-5872 (US) or 800-323-5872 (Canada) for assistance.

#### Step 2: Export the QuickBooks Chart of Accounts file

Once the integration is turned on, you need to export your QuickBooks chart of accounts. Note that you will have to repeat this step if new accounts are added in QuickBooks that you want to post to from StockTrac®.

To export the chart of accounts, open QuickBooks and choose File, Utilities, Export, Lists to IIF Files as shown below:

The following screen will display:

Click Chart of Accounts and choose OK. This screen will display:

You will now be asked to specify the name of the file and where you want it saved on your computer. In this example, we are saving the file to our StockTrac® directory:  C:\stwin3. We are going to name the file chartofaccounts and save it as file type IIF. Make a note of where you put the file and what you named it. When you are finished, click Save. (If you need assistance with this, call Janco Support.)

#### Step 3: Print the Export Setup Worksheet in StockTrac® (Optional)

From the main StockTrac® main menu, go into the Sales module.

Click on the Accounting Export drop-down menu, and then Export Setup Worksheet. The report will be sent to the printer. You can use this report as reference when deciding how to map your QuickBooks Accounts to StockTrac®.

#### Step 4: Map Your QuickBooks Accounts to StockTrac®

While in the Sales module, click on the Accounting Export drop-down menu, and then select Export Setup. A screen similar to the following will display:

You will be on the “Input and Output Files” tab when you initially get into this function. Specify the following information:

• QuickBooks Chart of Accounts – specify the file that contains your exported chart of accounts (see Step 2).
• Output File Name – Select where you want the exported information to go (location on your computer and file name).
• Output Type – this should be IIF
• Email address – this is the email address you can optionally send the export to.

Once you have specified the information above, you are ready to define the account mappings. You will click on each of the sections on the far left of your screen (Sales – Defaults, Sales – Deposits/AR, Sales – Credit Card, Sales – Sales Tax, Sales – Net Sales and Sales – Cost of Sales) and link accounts from QuickBooks to StockTrac®.

For example, if you click on Sales – Deposits/AR, the following screen will display:

To define a mapping, highlight the StockTrac® category on the left, highlight the QuickBooks account on the right, and then select Assign.

Continue to click on the rest of the sections (Sales – Credit Card, Sales – Sales Tax, etc.) until all your accounts are mapped.

Here are some things to keep in mind when mapping your accounts:

• Map your Deposits to the account in QuickBooks that will keep track of Cash and Checks.
• You will want to create Income type accounts in QuickBooks for credit cards. Do not use the credit card accounts that come with QuickBooks, as those accounts are considered Expense type accounts.
• Create a Sales Tax account in QuickBooks. Do not use the Sales Tax Payable account already in QuickBooks, as you cannot update that account from an outside source.
• Before you export your data for the first time, make a backup of your QuickBooks data. This way you have a point to go back to if you do not get the desired results on your first run.
• If you find you need more accounts added into QuickBooks, you will need to perform Step 2 again to create a new export file so StockTrac® can see those new accounts.

When you are finished with all of the mappings, select Save.

#### Step 5: Export Your StockTrac® Data to QuickBooks

Once you have your mappings set the way you want, you are ready to export your StockTrac® data to QuickBooks.

To do this, go to the Sales module, then click the Accounting Export drop-down menu and then Export to File.  The following screen will display:

Enter the following information:

Period                                 Select Day, Week, Month, Year or Custom

Starting Date                     The starting date of the export

Ending Date                       The ending date of the export

Type                                    Sales is the only type that can currently be exported                                                to QuickBooks

Don’t Email                        Click this box if you do not want to email the export                                                  file

Email address                    The email address that you want the export sent to                                                  (can be blank)

Fill in the above information and click Export. The data will be exported to the file name you specified on the Input and Output Files tab in the Export Setup program. The data will also be emailed if you entered an email address and left the Don’t Email box unchecked.

#### Step 6: Print and/or View the Output File (Optional)

After you have exported your data, you can verify the balance between StockTrac® and QuickBooks by printing or viewing the output file. To do this, go to the Sales module and selecting Accounting Export and either Print Output File or View Output File. If the balance is not 0, check your account mappings to be sure everything is mapped to the proper accounts.