Wholesale deals with purchasing large batches of products from manufacturers, changing the amount of sold batches and assortment (sorting, packaging, completing product assortments), and selling them further to retail outlets.
Its most important tasks include:
- correct deliveries to retail outlets,
- taking care of appropriate quality of products and protecting their values in use,
- organising movement of goods,
- levelling time disproportions between the production and sale of goods (also by storing),
- cooperation with producers in arranging deliveries in accordance with the demand structure.
From the point of view of the financial and accounting administration, this line of business is distinguished by large volumes of accounting operations, which sometimes exceed hundreds of thousands of purchase or sale documents, as well as their repetitiveness. In order to keep correct accounting records of such large volumes, it is necessary to use IT systems and integrate a client’s business systems with accounting systems, i.e. online accounting. In most cases, warehouse and sale processes are managed by clients themselves with the use of their IT tools.
The automation of many processes is another characteristic element of wholesale management, e.g.: the settlement process of bank statements, factoring, merchant credit management. It all comes to the necessity to keep accounting books in the system of online accounting.