Logical 02300 - Retail Transaction - Macro View

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Subject Area Concepts

This subject area includes the entities that make up a retail transaction in the ARTS ODM V7.0/7.1.  The retail transaction is by far the most complex and most frequently occurring type of transaction.  The retail transaction captures the sale or return of retailer merchandise and services along with the tax liabilities and customer payment. A retail transaction represents the point in a customer-retailer interaction when items are exchanged for tender and sales revenue is recognized.

The Retail Transaction View organizes and defines the data structures required to support the recording of sales and returns and related business between the store and its customers. RetailTransaction records are created at the point where the store's merchandise and services are transformed into tender and credited as sales (or the reverse for returns).  The retail transaction views answer questions like:

What retail items did the store sell during a given period?
When were the retail items sold?
Where were the retail items sold in the store?
Who sold the retail items?
How much was charged for the retail items?
How much sales tax was collected in a given transaction?
What fees were earned in a given transaction?
What special allowances, discounts, markdowns and other price modifications were applied to the items?
How much tender was received or disbursed to settle the transaction?
What kind of tender was received or disbursed?

There are certain design principles the ARTS Operational Data Model incorporates into the Retail Transaction Views to emphasize fiscal and unit accounting integrity. These principles are:

All retail transactions must be reducible to a standard set of accounting entries consistent with generally accepted retail accounting practices. This requirement is a key part of integrating retail transactions with the financial ledger for the store;
All debit and credit entries that originate from a retail transaction must balance;
All retail transactions must be traceable to the individual keying in the sale, the till used to collect tender, the workstation used to record the sale and the date and time the transaction is created;
Retail transactions involving merchandise sales or returns must be linked to the financial and merchandise unit control ledgers used to account for and audit the daily operation of the store;
The retail transaction is organized into three tiers:

Transaction level: information to describe the people, place, time, location and type of business conducted between the store and a party;

Line level: information to describe the individual items that make up the transaction; and

Line modifier level: information to apply specific pricing rules, sales tax rules, sales restriction rules, and so on to individual line items in a transaction.

Sale/return merchandise line items, deposit/redemption line item's, and sale/refund service line item's must be associated with a valid POSIdentity and through that entity to a valid Item.  The POSIdentity entity type provides the point of sale system's item identity which is usually a GS1, UPC or EAN barcode and product number.

The Logical 02300 – Retail Transaction Macro Diagram view presents a high-level context for exploring how the ARTS Operational Data Model represents transactions.  Retail transactions have to handle a complicated combination of business activities that include identifying merchandise and services, calculating the retail price, calculating taxes, and collecting and verifying tender, collecting customer information including loyalty program parameters and settlement.  Given the complexity of business activity, the ARTS Operational Data Model breaks retail transactions into a number of subsidiary views.

The diagram shown here associates an ARTS retail transaction entity model with a simulated sales receipt.  It highlights the way sale/return line items, price modifiers, tax and tender shown on a sales receipt are rendered in the third normal form ARTS Data Model.  The colored letters on the sales receipt match the colored letters on the entity model.

Figure 54 - Concrete Retail Transaction Example


This is a typical retail transaction.  There are many retail transaction variants and some can get very complex.  In ARTS all retail transaction debits and credits must balance to zero.   The next diagram shows how the sales receipt is recast into an accounting model with line item-level debit and credit dispositions.

Figure 55 - Retail Transaction Accounting Disposition