Commissary Coupon Policy

*This is not the DECA coupon policy in its entirety. You can view the rest of the policy on the commissaries’ website. This coupon policy was updated 4/2/10. The policy you are about to view is the new policy.

**I have highlighted the most important details in red – the fact that the commissary allows overage being one of them.**

If you shop at the commissary, I highly recommend you print this and take it with you as many times the cashiers are not well versed on the correct policy.

CHAPTER 7
ACCEPTANCE AND REDEMPTION OF MERCHANDISE COUPONS

7-1. MERCHANDISE COUPONS

Coupons come in the form of printed paper and Internet advertisements, redeemable as a cash substitute for legal tender when purchasing the items specified on the coupon. DeCA commissaries accept all valid coupons when redeemed IAW the terms stipulated on the coupon. This includes coupons distributed through the Internet (with certain restrictions), authorized local coupons, and specific area coupons known as route salesperson coupons. DeCA must ensure that the terms of the agreement printed on each coupon are followed. After redemption, coupons become part of the overall commissary cash flow and must be safeguarded and accounted for like any other media. Reimbursement procedures are contained in DeCAD 70-6, Chapter 9.

7-2. PROCEDURES FOR CASHIERS

Prior to starting a sales transaction, the cashier will ask if the customer has any coupons to redeem. Coupons are not required to be placed with the items to be purchased. However, valid coupons will be accepted anytime prior to the completion of the sale transaction. At CONUS commissaries, including Alaska and Hawaii, a coupon is considered invalid, and will not be accepted, if presented at a date later than the expiration date. OCONUS commissaries may continue to accept coupons for up to 6 months following their prescribed expiration dates. Charge sale customers may use coupons if the transaction is processed through the cash register.

7-3. ELEMENTS REQUIRED ON A COUPON

The following elements must be present for a coupon to be valid:

a. The word “coupon;”

b. A message to the retailer specifying the terms and conditions for accepting the coupons;

c. Redemption address;

d. An expiration date is not required on the coupon. A valid coupon may have an expiration date, may be imprinted to state NO EXPIRATION DATE, or not have any information regarding expiration date. Coupons will not be accepted past the expiration date printed on the coupon, except for overseas locations (see paragraph 7-2, above);

e. The purchase requirement, e.g., “Coupon good on any size purchase of…,” or “Coupon good on the purchase of two cans of…,” etc.; and

f. A specially stated face value, e.g., “50 cents” or an “up to” or “no more than” value (“value no more than $2.00″), etc.

7-4. COUPON ACCEPTANCE PROCEDURES

DeCA encourages commissary patrons to use coupons because savings realized through coupon use can add significantly to the savings that our patrons already generate just by shopping in commissaries. However, our coupon acceptance policy has to take into account the intent of manufacturers and others who issue coupons regarding the terms and conditions under which their coupons may be redeemed.

a. Coupons will be accepted only for items purchased by the customer.

b. Coupons will be either scanned or rung up individually. “For free” coupons will be rung up manually. Coupons accepted for case lot/truckload sales must be separated from the pad and presented as individual coupons. Do not accept full pads of coupons. Send only coupons that have been removed from pads to CCH. The coupon-processing contractor must comply with the terms of the manufacturer’s offer and will not accept pads of coupons for redemption as it can give the impression of fraud and abuse of coupons. The CCH will return pads of coupons to DeCA unpaid.

c. Do not accept or process manufacturer rebate checks, refund certificates, or mail-in offers as coupons. Rebate checks or refund certificates can be accepted as payment for commissary purchases and processed in the same manner as traveler checks/money orders. The cashier must ensure that the words “negotiable instrument” are printed on the face of the check/certificate. These manufacturer rebate checks and refund certificates are to be deposited with the bank and will not be included with the coupons sent to the CCH. Customer’s SSN is not required on these manufacturer rebate checks. Mail-in rebates are not accepted at the cash register. Mail-in rebates are the responsibility of the customer.

d. Only accept manufacturer and military only coupons. DeCA does not accept commercial store coupons, such as Lucky’s, Food Lion, etc. Store coupons from commercial grocery stores are in-store promotions. The commercial grocery store coupons are part of their advertising program and they absorb the promotion coupon value out of their profits. DeCA prices merchandise at cost and has no profit margin to accept these types of coupons.

NOTE: “Military only” coupons will NOT be accepted for tobacco products.

e. Coupons will not be disbursed to customers at the cash register. Coupons can be given out at different areas of the store by vendors or vendor representatives. DeCA employees should not give out coupons, except in unusual circumstances, and should not give the impression DeCA is favoring one vendor over another. It is not recommended that DeCA employees give out coupons.

f. Coupons will only be accepted as specified on the coupon. If a coupon states a particular type, size, or brand, this coupon cannot be used on a different size or product. Written approval must be obtained in advance from the appropriate region for any deviation from this policy.

g. If the coupon states that the value is up to, but not to exceed a certain dollar amount and provides a space for the cashier to write in the cost price of the item, the customer will be given credit for only the actual cost of the product.

h. If a customer presents a “side-by-side” coupon, for example: first side states “buy 1 item – 25 cents off,”second side states “buy 2 items – 50 cents off,” the cashier must determine how many items were purchased and either enter the coupon value or scan the coupon for the value of the number of items purchased. The cashier must place an “X” on the side of the coupon not used. This will allow DeCA to be reimbursed by the CCH for the proper amount.

i. DeCA cannot authorize double coupon day

(1) When commercial grocery stores offer double or triple coupons, they actually deduct double or triple the face value of the coupon during the patron purchase transaction. When commercial stores conduct these types of promotions, manufacturers reimburse the stores ONLY for the face value of one coupon. The commercial grocery stores that offer the double or triple coupon promotions must bear the cost of any coupon value above coupon face value returned to patrons. Commercial grocery stores either absorb these losses in the profit that they make on sale of goods, or offset these losses by manipulating their price structure to generate gains in other parts of their operations.

(2) Commissaries cannot offer double or triple coupon promotions as described above for the following reasons:

(a) By law, DeCA is required to sell all commissary items at prices set only high enough to cover item costs, with NO profit or overhead costs, e.g., labor costs, cost of maintenance and repair, etc., included in prices to patrons;

(b) DeCA has no profit in which to absorb losses associated with double or triple coupon promotions; and

(c) Because DeCA is required by law to sell all commissary items at prices set only high enough to cover item costs, DeCA cannot manipulate prices to generate gains to offset losses associated with double or triple coupon promotions.

j. Coupons are considered a cash substitute for legal tender and must be secured in the cash register or placed in the locked slotted coupon drawer until a pick-up is made or the cashier leaves that register. If a cashier moves to another register, the coupons should be turned in to the customer service department supervisor to ensure coupons are not co-mingled with other cashier’s coupons. Ensure coupons are separated from cash and checks.

k. Commissaries may accept Internet coupons. Internet coupons cannot be accepted for free products. Internet coupons must contain a typical barcode and PIN and may also contain a GS1 DataBar or a Dot Scan Barcode below the expiration date. “Buy One Get One Free” coupons are acceptable if they meet all other requirements.

l. Title 10 U.S. Code 2486(d) requires DeCA commissaries to recover the full cost of every item sold and that the commissary surcharge be collected on the full cost of all items sold. Coupon values are deducted from transactions after the surcharge is computed and applied to full value of the transaction.

m. Accept one coupon per item, except for the following exception;

(1) There is one “special” situation in which commissary personnel may accept multiple coupons on the purchase of a single item. These multiple coupon situations are typically short-term and applicable only during a particular commissary promotion. Manufacturers or brokers who voluntarily wish to use multiple coupons in support of a promotion item or event must submit on company letterhead a typed and signed request to the appropriate region Operations Business Area. The request must identify the starting and ending period of the offer, item UPC, description, face value of the coupon, number of coupons allowed per item, and the commissaries involved. The appropriate region will approve the request by endorsement and signature, provide the approved request to the vendor/manufacturer and affected stores, and retain a copy on file.

(2) Typically, the program mentioned above is one wherein a manufacturer or broker provides, directly to the commissary, coupons for use in support of the promotional event. Those coupons are the primary source for multiple couponing used by customers. In other words, coupons are made available when the customer comes to the commissary, purchases the sale item, and is then provided the number of coupons allocated for that particular item. If a customer comes to the commissary with a coupon for that item, the customer has the option of using their coupon or the number of coupons being offered in store for that item. However, the customer cannot add their coupon to the multiple coupons being offered in store, thereby increasing coupon savings not intended by the manufacturer. The total number of coupons allowed cannot exceed the number the manufacturer or broker offers for that item.

n. Valid coupons will be entered at the value stated on the coupon. If the value of the coupon exceeds the cost of the product, the customer will be given the full value of the coupon.

o. See paragraph 7-8 for local coupons.

p. See paragraph 7-10 for case lot sale coupon process.

q. Coupons may be used for “reduced for quick sale” items.

7-5. SCANNED COUPONS

a. The bar code on coupons provides an effective way to electronically designate a coupon’s redemption value, designate the product in an offer, validate purchase, and track coupon usage. Many current coupons also contain a supplementary bar code. This extended bar code enables the communication of additional information such as offer codes, expiration dates, family codes, and serialized identification numbers.

b. Commissaries will scan all coupons with bar codes, except coupons for free items. Coupons for free items must have the price manually entered into POS.

c. If a coupon scans at a value that is either more or less than the face value imprinted on the coupon, it can give rise to potentially damaging customer service issues, as well as create gains or losses for DeCA. If a cashier or customer detects that a coupon has been scanned at a value different than the face value of the coupon, the customer will be given the face value of the coupon. The following policy and procedures apply:

(1) If a scanned coupon value is greater than the face value of the coupon, the cashier must mark the scanned value on the coupon. The cashier will void the original scanned coupon entry and manually enter the face value of the coupon. The coupon will be set aside for further action as described below.

(2) If a scanned coupon value is less than the face value of a coupon, the cashier will mark the scanned value on the coupon. The cashier will then void the original scanned coupon entry and manually enter the face value of the coupon. The coupon will be set aside for further action described below.

(3) Upon completion of a sales transaction involving mismatched face/scanned coupon values, the cashier will advise the customer service department supervisor of the coupon value mismatch and provide the coupon to the manager.

(4) The customer service department supervisor will inform cashiers of coupons that have improper values when scanned.

(5) Management will attempt to find and eliminate, if possible, the source of any coupon with mismatched value. If the source of a coupon with mismatched value is “in-store,” e.g., a coupon pad or shelf dispenser; remove from public availability/display, but do not destroy the coupon’s source. Do not attempt to find or eliminate the source of coupons that originate outside the commissary. If the coupon is contained in a store coupon circular, the circular will continue to be given to customers. Cashiers must be notified of the problem and be instructed not to scan the coupon. The coupon should be manually entered using the face value of the coupon. Under no circumstances should the commissary refuse to redeem coupons known to have mismatched values that are already in a customer’s possession.

(6) After having taken action to find and eliminate the source of mismatched value coupons, commissary management will fax or scan and e-mail a copy of the front and back of the coupon to DeCA Headquarters, Operations Business Group Division (DOB), to report any mismatched coupon value incident. Commissary personnel will also follow instructions that regions may have issued regarding the reporting of mismatched coupon values to regions. After having taken all actions described above, the commissary will send coupons with mismatched values to CCH for redemption IAW DeCAD 70-6, Chapter 9.

(7) Upon receipt of information about mismatched coupon values, DOB will coordinate with the Financial Business Unit, as necessary, to provide information that might be relevant to the redemption of coupons through the CCH. DOB will also coordinate with the Marketing Business Unit to contact companies responsible for issuance of coupons with mismatched values, and take whatever action may be necessary to recover fiscal losses to DeCA that result from “higher value” redemption of coupons with mismatched values.

d. When vendors bring in coupons to be placed on the shelf, the store director will designate someone to scan the coupon in the training mode as a test to ensure the coupons are scanning the correct face value. If they are not scanning the correct value, do not put the coupons on the shelf or display for the customer, record the scanned amount on the coupon, retain a copy of the coupon, and return the coupons to the vendor. Notify DOB that the coupon is not scanning the printed face value of the coupon.

e. Some items on sale in commissaries have coupons with bar codes incorporated directly into item packaging. Some commissaries have reported that when these items are scanned, especially with POS “wraparound” scanning capability, the scanner picks up the coupon bar code rather than the item bar code. The result of this inadvertent mis-scan is that the customer is not charged for the item and the value of the coupon scanned is deducted from the customer’s transactions. This will result in the commissary losing the value of the item itself from inventory and also losing the value of the coupon. To safeguard against this type of mis-scanning, the commissary should continually be on the lookout for these types of coupons, which are built into the packaging and detectable via electronic scanning. Once scanable coupons are identified, cashiers should immediately report their existence to the customer service department and then continue processing the item by physically covering the coupon bar code permitting the scanner to read only the item bar code.

f. For coupons that do not scan because their family code is not loaded into POS:

(1) Cashiers will turn in copies of the coupon to the cash cage.
(2) Cash cage will fax a copy of these coupons to Coupons, Inc., 812-339-2201.

7-6. PROCEDURES FOR CUSTOMER SERVICE DEPARTMENT SUPERVISOR.

1. Treat coupons as negotiable instruments. Secure coupons in the funds storage room and store in the safe, if space is available, pending shipment to the CCH.
2. A 100% coupon audit will be performed on every cashier twice a year. Each cashier will have their coupons counted during pickups and at the end of their shift. A locally devised log will be used to document and track the results of all coupon audits. The coupon audit tracking log shall be maintained and kept on file for 1 year.

7-7. GS1 DATABAR.

The coupon industry is moving to a new barcode for coupons, called the GS1 DataBar, Figure 7-1, which will affect all coupons. Starting June 1, 2008, manufacturers are required to use the GS1 DataBar alongside the traditional barcode. Beginning January 2010, only the GS1 DataBar will be used.

7-8. LOCAL COUPONS.

a. Local merchandise coupons are cents-off coupons for particular products that are from a local source and can only be redeemed in that particular geographic area. These coupons are usually obtained from local publications such as newspapers. They contain specific instructions for local redemption by the commissary. The majority of these coupons are issued by local beverage franchises and bakery product companies. Local coupons are also referred to as route salesperson coupons. A local salesperson usually makes these coupons available to specific commissaries for a particular promotion of a certain product. When local coupons are accepted, the “manufacturer coupon” total used for DeCAF 70-15 and DD Form 707 must be reduced by the amount of local coupons.

b. Vendor representatives will submit route salesperson coupon offers in writing to the regional office via the store director. The store director must obtain approval from the region for all local coupon promotions and must ensure that the offer contains the following information:

(1) An agreed upon handling fee, at least equal to the handling fee on manufacturer national coupons; and

(2) An agreement that coupons accepted in good faith will be honored and redeemed within 30 days after submission; the coupons will be redeemed by check only. Credit memos or cash will not be accepted as payment for coupons.

c. Commissaries may accept local and route salesperson coupons provided they meet the criteria for a valid coupon. Every coupon should contain:

(1) The word “coupon”;

(2) A message to the retailer specifying the terms and conditions for accepting the coupon;

(3) Redemption address or instructions on how to redeem the coupon;

(4) The purchase requirement, e.g., “Coupon good only on the 15-oz size package of…,” or “Coupon good only on the purchase of four cans of…,” etc.;

(5) Specify the face value or “free terms” of the coupon; and

(6) Location or commissary for which the offer is valid.

d. Cashiers will accept and account for local and route salesperson coupons in the same manner as manufacturer coupons. Local coupons will be tendered as a manufacturer coupon in POS; however, they must be kept separate from manufacturer coupons. The customer service department supervisor must also keep the coupons segregated during pickups.

e. Local and route salesperson coupons will be stored in the safe or other secure location. The number and dollar value of these coupons will be included daily on the DD Form 707 and the dollar value will be subtracted from the grocery section. The accounting procedures will be the same as those used for manufacturers’ coupons.

f. Local and route salesperson coupons will NOT be sent to the CCH. When sufficient amounts of these coupons accumulate, but at least monthly, route salesperson coupons will be submitted to the local salesperson for redemption or local coupons will be sent to the local vendor for redemption. Request the vendor or salesperson remit the payment within 30 days and make the check payable to the Defense Commissary Agency. Ensure that the value of the local coupons is subtracted from the DeCA Interactive Business System (DIBS) generated transmittal (transmittal which is included in the coupon shipment to CCH). A transmittal document will be prepared and given to the local vendor with the local coupons attached. Procedures for coupon transmittal processing are described in DeCAD 70-6, Chapter 9.

You can view the rest of the coupon policy on the Commissaries’ website.

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