Common use of Total Deductions Clause in Contracts

Total Deductions. This is a calculated sum of ‘Breakage Defective Allowed by CRA and/or LDB’ and ‘Other Breakage, Adjustments & Write-offs’.  Closing Inventory – Calculated – This is calculated by deducting the ‘Total Shipments to the LDB for LDB Distribution’, ‘Total Direct Shipments to Wholesale & Hospitality Customers in BC (including your On-Site Store)’ and ‘Total Deductions’ from the ‘Total Product Available in BC’ column of the Product Movement Summary.  Closing Inventory – Physical – You are required to physically count the inventory (packaged beverage alcohol) you have on hand in any Warehouse in British Columbia. The inventory that you physically counted (converted to hectolitres) should be reported in the ‘Closing Inventory – Physical’ column of the Product Movement Summary. Ensure you retain the inventory count sheets which record the inventory physically counted on March 31 along with the Brewery’s inventory records. INFORMATION ONLY  Difference – This is calculated by deducting the ‘Closing Inventory – Calculated’ total from the ‘Closing Inventory – Physical’ total reported on the Schedule A.  LDB Shrinkage Allowance Calculation – The shrinkage allowance takes into account an acceptable volume of packaged beverage alcohol that may be consumed or written- off in BC activities. By allowing this, a manufacturer does not have to fully document each instance of breakage/destruction which may occur. The rate depends on the annual production volume of the manufacturer. The current rate of the LDB shrinkage allowance is 0.5% of ‘Total Calculated Product Moved in BC’ for the annual production of beer for Breweries with worldwide production level of less than 350,000 hectolitre and 0.3% of ‘Total Calculated Product Moved in BC’ for the annual production of beer for Breweries with worldwide production level is greater than 350,000 hectolitres.  Self-Assessment Calculation – This portion of the Product Movement Summary calculates the ‘Total Deductions Subject to LDB ▇▇▇▇-up’. If the amount is positive, you owe the LDB ▇▇▇▇-up because your non-sale inventory deductions exceed the LDB shrinkage allowance. The LDB will invoice you to recover the ▇▇▇▇-up value based on the LDB Established Retail Price of the excess volume of the unaccounted movement of inventory.  Other – With the submission of your Product Movement Summary, you must provide the LDB a listing of all the Warehouses located in British Columbia where you stored any of your packaged products as at March 31.

Total Deductions. This is a calculated sum of ‘Breakage Defective Allowed by CRA and/or LDB’ and ‘Other Breakage, Adjustments & Write-offs’.  Closing Inventory – Calculated – This is calculated by deducting the ‘Total Shipments to the LDB for LDB Distribution’, ‘Total Direct Shipments to Wholesale & Hospitality Customers in BC (including your On-Site Store)’ and ‘Total Deductions’ from the ‘Total Product Available in BC’ column of the Product Movement Summary.  Closing Inventory – Physical – You are required to physically count the inventory (packaged beverage alcohol) you have on hand in any Warehouse in British Columbia. The inventory that you physically counted (converted to hectolitres) should be reported in the ‘Closing Inventory – Physical’ column of the Product Movement Summary. Ensure you retain the inventory count sheets which record the inventory physically counted on March 31 along with the Brewery’s inventory records. INFORMATION ONLY  Difference – This is calculated by deducting the ‘Closing Inventory – Calculated’ total from the ‘Closing Inventory – Physical’ total reported on the Schedule A.  LDB Shrinkage Allowance Calculation – The shrinkage allowance takes into account an acceptable volume of packaged beverage alcohol that may be consumed or written- off in BC activities. By allowing this, a manufacturer does not have to fully document each instance of breakage/destruction which may occur. The rate depends on the annual production volume of the manufacturer. The current rate of the LDB shrinkage allowance is 0.5% of ‘Total Calculated Product Moved in BC’ for the annual production of beer for Breweries with worldwide production level of less than 350,000 hectolitre and 0.3% of ‘Total Calculated Product Moved in BC’ for the annual production of beer for Breweries with worldwide production level is greater than 350,000 hectolitres.  Self-Assessment Calculation – This portion of the Product Movement Summary calculates the ‘Total Deductions Subject to LDB ▇▇▇▇-up’. If the amount is positive, you owe the LDB ▇▇▇▇-up because your non-sale inventory deductions exceed the LDB shrinkage allowance. The LDB will invoice you to recover the ▇▇▇▇-up value based on the LDB Established Retail Price of the excess volume of the unaccounted movement of inventory.  Other – With the submission of your Product Movement Summary, you must provide the LDB a listing of all the Warehouses located in British Columbia where you stored any of your packaged products as at March 31.